10 Best Beaten Down Dividend Stocks to Invest in Now

6. UGI Corporation (NYSE:UGI)

3-year high-to-low share price decrease as of August 30: 48.8%

UGI Corporation (NYSE:UGI) is a Pennsylvania-based natural gas and electric power distribution company that offers safe, reliable, and affordable energy to its consumers. The company owns AmeriGas, the largest propane marketer in the US. The European propane market has been volatile, leading to an oversupply and decreased demand in the heating sector. The company also runs an LPG distribution business across 16 European countries under six well-known brands. This has led to the company encountering difficulties in the market. As a result, propane prices have fallen by nearly 20%, now sitting below levels from two years ago. AmeriGas Propane, its LPG division, reported $445 million in revenue for fiscal Q3 2024, down from $514 million during the same period last year.

UGI Corporation (NYSE:UGI) also reported a nearly 17% YoY decline in its revenue in fiscal Q3 2024 at $1.38 billion. These recent headwinds have not distracted the company from achieving its long-term goals. The company is actively tackling the current challenges by leveraging all available resources. The board has chosen to focus on restructuring and improving operations at AmeriGas. This approach emphasizes retaining customers, boosting free cash flow, managing costs effectively, and maintaining disciplined capital allocation. The company has also set a plan to distribute $1.3 billion in shareholder returns from fiscal 2024 through 2027.

First Pacific Advisors also mentioned reasons to invest in UGI Corporation (NYSE:UGI) in its Q1 2024 investor letter. Here is what the firm said:

“UGI Corporation (NYSE:UGI) owns gas utilities and pipelines in Pennsylvania and West Virginia and the largest propane distribution businesses in the United States and Europe. Despite its disparate parts, UGI has increased consolidated earnings at a relatively steady high- single-digit rate while distributing excess cash through dividends. UGI’s share price has declined because of a combination of poor execution and too much debt at AmeriGas, UGI’s U.S. propane business. On August 30, 2023 UGI announced a review of strategic alternatives. We believe the company’s stock price is attractive at less than 10x earnings, and we have been incrementally adding to the Fund’s position.”

UGI Corporation (NYSE:UGI), one of the best dividend stocks on our list, has been growing its dividends consistently for the past 37 years. The company pays a quarterly dividend of $0.375 per share and has an impressive dividend yield of 6.02%, as of August 30.

UGI Corporation (NYSE:UGI) was a part of 32 hedge fund portfolios at the end of Q2 2024, up from 29 in the previous quarter, as per Insider Monkey’s database. The stakes owned by these hedge funds have a consolidated value of over $310.6 million.