Redditors Love These 5 Under-The-Radar Dividend Stocks

In this article, we discuss 5 under-the-radar dividend stocks that Redditors love. If you want to read our detailed analysis of the growth of retail investing, go directly to read Redditors Love These 10 Under-The-Radar Dividend Stocks.

5. The Buckle, Inc. (NYSE:BKE)

Dividend Yield as of September 20: 4.24%

The Buckle, Inc. (NYSE:BKE) is a Nebraska-based fashion retailer that sells clothes, footwear, and accessories and operates over 450 stores across the US. The company’s growing e-commerce business caught the attention of the Reddit community as it would cater to its customer base in rural America. Moreover, the company also went through a major inventory reset that would grow its sales.

In August, The Buckle, Inc. (NYSE:BKE) reported a 4.6% year-over-year growth in its comparable sales. Net sales for the period stood at $118 million, up 5.8% from the same period last year. In Q2 2022, the company generated $40 million in free cash flow, compared with $14.3 million in the previous quarter. Its operating cash flow also grew to $48 million, from $21.5 million in the preceding quarter.

On September 13, The Buckle, Inc. (NYSE:BKE) declared a quarterly dividend of $0.35 per share, consistent with its previous dividend. The company has raised its dividends three years in a row. As of September 20, the stock’s dividend yield came in at 4.24%.

As of the end of June 2022, 23 hedge funds tracked by Insider Monkey owned stakes in The Buckle, Inc. (NYSE:BKE), compared with 29 in the previous quarter. These stakes hold a collective value of over $98.2 million. Jim Simons and Ken Griffin were some of the company’s most prominent stakeholders in Q2.

Miller Value Partners mentioned The Buckle, Inc. (NYSE:BKE) in its Q2 2022 investor letter. Here is what the firm has to say:

“Another name with a nice dividend yield, attractive valuation and significant shareholder alignment is clothing retailer The Buckle (NYSE:BKE). Based in Omaha, NE, management owns almost 40% of the company and is shifting its focus to online sales. The company is very well run and has been onto something for a long time. In each of the last 27 consecutive calendar years, The Buckle has generated positive free cash flow (not “adjusted” free cash flow), something that few companies can say. Despite this track record, the company trades at a trailing free cash flow yield in the teens with a rock-solid balance sheet, in our opinion, and a highly aligned management team in Warren Buffett’s backyard.”