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.”
4. Citizens Financial Group, Inc. (NYSE:CFG)
Dividend Yield as of September 20: 4.56%
Citizens Financial Group, Inc. (NYSE:CFG) is an American financial services company that provides banking, credit card, and loan-related services to its consumers. In Q2 2022, the company reported revenue of nearly $2 billion, which showed a 23.6% growth from the same period last year. Its pre-provision net revenue also grew by 45% quarter-over-quarter to $850 million. The company’s management authorized the repurchase of its common stocks worth $1 billion.
According to a Reddit community, Citizens Financial Group, Inc. (NYSE:CFG) has shown strong loan growth and dividend hikes over the past few years. The bank’s performance has also remained stable during the pandemic, compared with other larger banks in the US. It has raised its dividends at a CAGR of 22.35% in the last five years. On July 19, the company declared a 7.7% hike in its quarterly dividend to $0.42 per share. As of September 20, this under-the-radar dividend stock’s yield came in at 4.56%.
In September, Deutsche Bank maintained its Buy rating on Citizens Financial Group, Inc. (NYSE:CFG) with a $50 price target, presenting a positive outlook on the company’s performance.
The number of hedge funds tracked by Insider Monkey owning stakes in Citizens Financial Group, Inc. (NYSE:CFG) grew to 43 in Q2 2022, from 41 in the previous quarter. These stakes hold a consolidated value of $525.2 million.
3. Getty Realty Corp. (NYSE:GTY)
Dividend Yield as of September 20: 5.59%
Getty Realty Corp. (NYSE:GTY) is a New York-based real estate investment trust company that is focused on the ownership, leasing, and financing of different automotive properties. The company is famous among Redditors as it has expanded its footprint in the country over the years and has shown strong financials. In addition to this, it has been raising its dividends consistently for the past 9 years. The company currently pays a quarterly dividend of $0.41 per share, with a dividend yield of 5.59%, as recorded on September 20.
In Q2 2022, Getty Realty Corp. (NYSE:GTY) generated $22.5 million in free cash flow, up from $20.8 million in the previous quarter. The company’s revenue for the quarter came in at $40.8 million, up 6.7% from the same period last year. It invested over $50.5 million across 17 properties in the US.
In August, BofA upgraded Getty Realty Corp. (NYSE:GTY) to Neutral with a $33 price target, as the company’s management has shown a higher appetite for external growth which would accelerate earnings growth in the coming years.
At the end of Q2 2022, 8 hedge funds tracked by Insider Monkey owned stakes in Getty Realty Corp. (NYSE:GTY), compared with 11 in the previous quarter. These stakes are collectively valued at over $51 million. Hill Winds Capital owned one of the company’s most prominent stakeholders in Q2.
2. The Western Union Company (NYSE:WU)
Dividend Yield as of September 20: 6.57%
The Western Union Company (NYSE:WU) is a Colorado-based multinational financial services company that helps businesses and individuals transfer money around the globe. In August, Northland maintained its Outperform rating on the stock with a $22 price target, following the company’s Q2 results. The firm expects the company to grow its revenues in the upcoming quarters.
Redditors widely talked about The Western Union Company (NYSE:WU)’s cash flow and balance sheet which gives the company a prominent position among its competitors. However, the Redditors also showed concerns about its higher fees in comparison with its peers. The Western Union Company (NYSE:WU) has been raising its dividends consistently for the past seven years, with a five-year dividend CAGR of 6.53%, which places it as one of the best dividend stocks on this list. It currently pays a quarterly dividend of $0.235 per share, with a dividend yield of 6.57%, as recorded on September 20.
In the first half of 2022, The Western Union Company (NYSE:WU) generated $307 million in operating cash flow. The company had over $1.2 billion in cash and cash equivalents and $8.7 billion in total assets. During Q2 2022, the company returned $112 million to shareholders, $91 million of which represented dividend payments.
As per Insider Monkey’s Q2 2022 database, 21 hedge funds tracked by Insider Monkey owned stakes in The Western Union Company (NYSE:WU), down from 25 in the previous quarter. The consolidated value of these stakes is over $286 million, compared with $281 million worth of stakes owned by hedge funds in the preceding quarter.
1. Medical Properties Trust, Inc. (NYSE:MPW)
Dividend Yield as of September 20: 8.80%
Medical Properties Trust, Inc. (NYSE:MPW) is an Alabama-based real estate investment trust company that mainly invests in healthcare facilities. It is one of the best dividend stocks according to Redditors as it managed to raise its dividends consistently for the past nine years. Moreover, it has a dividend yield of 8.80%, up from a sector median of 4.3%. The company currently offers a quarterly dividend of $0.29 per share.
Following the company’s strong earnings in Q2 2022 and appreciating its stable balance sheet, Barclays maintained its Overweight rating on Medical Properties Trust, Inc. (NYSE:MPW) in August, with a $23 price target.
As of the close of Q2 2022, 15 hedge funds tracked by Insider Monkey owned stakes in Medical Properties Trust, Inc. (NYSE:MPW), compared with 16 a quarter earlier. These stakes hold a total value of over $238.5 million.
You can also take a look at Redditors Recommend These 10 Dividend Stocks for College Students and 10 Best Cheap DRIP Stocks to Buy Now
