10 Best Cheap DRIP Stocks to Buy Now

Published on September 20, 2022 at 10:16 am by Vardah Gill in Hedge Funds, News

In this article, we discuss 10 best cheap DRIP stocks to buy now. You can skip our detailed analysis of DRIP investment and the performance of DRIP stocks in the past, and go directly to read 5 Best Cheap DRIP Stocks to Buy Now.

A dividend reinvestment plan, or DRIP, is a well-known investment strategy to generate stable income. Companies that offer DRIPs automatically purchase more shares of the company through investors’ dividend payments. This is one of the most convenient strategies to generate compound returns. According to a report by Hartford Funds, reinvested dividends and compounding returns represented nearly 84% of the total return of the S&P 500 from 1960 to 2021. Another report by Schroders mentioned that from 1993 to 2018, average annual growth across eight markets stood at 4.3% without dividend reinvestments and grew to 7.1% when reinvested dividends were included.

Given the current inflationary environment, investors are advised to consider dividend stocks as they have historically produced stable returns. Companies with strong dividend growth histories are much sought after as they promise regular streams of income. The S&P 500 Dividend Aristocrats — stocks with over 25 years of consistent dividend growth — delivered average annual returns of 12.13% from 1990 to 2018. In comparison, the S&P 500 delivered a 9.9% return during the same period, as reported by an American investment banking company, Merrill Lynch. Among the most popular dividend stocks that investors are paying attention to are The Coca-Cola Company (NYSE:KO), PepsiCo, Inc. (NASDAQ:PEP), and Johnson & Johnson (NYSE:JNJ) because these companies maintain decades-long dividend growth streaks.

Analysts are also recommending the DRIP strategy to stay afloat in this current market situation. Daniel Milan, a managing partner of Cornerstone Financial Services, discussed dividend reinvestments in his CNBC Select interview earlier this year. He said that investors should focus on compound returns and reinvesting dividends is one of the main ways to achieve it. He further said that the DRIP strategy offers great growth potential through different market cycles. In view of this, we will discuss the best cheap DRIP stocks to buy now.

Photo by Nathan Dumlao on Unsplash

Our Methodology:

For this article, we selected dividend companies that offer dividend reinvestment plans (DRIPs) to shareholders and have share prices below $60, as of the close of September 18. We also analyzed these companies through hedge fund sentiment, using Insider Monkey’s Q2 2022 data. The stocks are ranked according to their share prices.

Best Cheap DRIP Stocks to Buy Now

10. Farmers National Banc Corp. (NASDAQ:FMNB)

Share Price as of September 19: $14.12

Dividend Yield as of September 19: 4.52%

Farmers National Banc Corp. (NASDAQ:FMNB) is an Ohio-based bank holding company that provides services in mortgage loans and other business products. The company reported strong earnings in Q2 2022, posting revenue of $41.19 million, which showed a 13.3% year-over-year growth. Its operating cash flow for the quarter stood at $27 million, up from $13 million in the previous quarter. The company’s free cash flow also jumped to $25.5 million in Q2, from $12.8 million in the preceding quarter.

On August 23, Farmers National Banc Corp. (NASDAQ:FMNB) declared a quarterly dividend of $0.23 per share, in line with its previous dividend. The company has been raising its dividends consistently for the past seven years, with a CAGR of 27%. As of September 19, this cheap DRIP stock’s dividend yield came in at 4.52%.

As of the close of Q2 2022, 10 hedge funds tracked by Insider Monkey owned stakes in Farmers National Banc Corp. (NASDAQ:FMNB), compared with 11 in the previous quarter. These stakes hold a collective value of over $13.6 million. With roughly $4.5 million worth of shares, Renaissance Technologies was the company’s leading stakeholder in Q2.

In addition to popular dividend stocks like The Coca-Cola Company (NYSE:KO), PepsiCo, Inc. (NASDAQ:PEP), and Johnson & Johnson (NYSE:JNJ), Farmers National Banc Corp. (NASDAQ:FMNB) is another prominent dividend stock for stable income.

9. Marathon Oil Corporation (NYSE:MRO)

Share Price as of September 19: $26.01

Dividend Yield as of September 19: 1.23%

Marathon Oil Corporation (NYSE:MRO) is a Texas-based energy company that specializes in the exploration of hydrocarbons and also runs international gas operations. In July, Piper Sandler lifted its price target on the stock to $41 with an Overweight rating on the shares, presenting a positive outlook on the exploration and production sector post-pandemic.

In Q2 2022, Marathon Oil Corporation (NYSE:MRO) reported revenue of $2.3 billion, which showed a 101.8% growth from the same period last year. The company returned $816 million of capital to shareholders, $56 million of which accounted for dividend payments. The shareholder return represented 51% of the company’s second-quarter adjusted CFO. In Q2, the company generated $1.2 billion in free cash flow.

On April 28, Marathon Oil Corporation (NYSE:MRO) declared a 14% hike in its quarterly dividend to $0.08 per share, which marked the company’s fifth consecutive dividend increase. The stock’s dividend yield came in at 1.23%, as of September 19.

At the end of Q2 2022, 41 hedge funds tracked by Insider Monkey reported owning stakes in Marathon Oil Corporation (NYSE:MRO), down from 43 in the previous quarter. These stakes have a collective value of over $1.26 billion.

Carillon Tower Advisers mentioned Marathon Oil Corporation (NYSE:MRO) in its Q1 2022 investor letter. Here is what the firm has to say:

“Stock selection contributed the most while sector allocation was also positive. An underweight to communication services and an overweight to energy helped performance, while an underweight to consumer staples and an overweight to materials detracted. Stock selection was strong within healthcare and materials but was weak within information technology and industrials. Marathon Oil (NYSE:MRO) increased its quarterly dividend and executed an impressive share buyback that blew by the target it originally announced.”

8. Bank of America Corporation (NYSE:BAC)

Share Price as of September 19: $34.49

Dividend Yield as of September 19: 2.55%

Another prominent DRIP stock to buy now on our list is Bank of America Corporation (NYSE:BAC), which is an American multinational investment bank and financial services holding company. The company was a part of 99 hedge fund portfolios in Q2 2022, the same as in the previous quarter, according to Insider Monkey’s data. The stakes owned by these hedge funds hold a combined value of roughly $36 billion.

In Q2 2022, Bank of America Corporation (NYSE:BAC) reported revenue of $22.7 billion, up 5.7% from the same period last year. The company’s net interest income also grew by 22% to $12.4 billion. In addition to this, its average loans and balances stood at $1 trillion, presenting a 12% growth from the prior-year quarter.

Bank of America Corporation (NYSE:BAC) last raised its quarterly dividend in July by 5% to $0.22 per share. This was the company’s ninth consecutive year of dividend growth. The stock’s dividend yield was recorded at 2.55% on September 19.

Deutsche Bank mentioned Bank of America Corporation (NYSE:BAC) in its investors’ note and maintained its Buy rating on the stock, as the firm sees upside in the banking sector after underperforming for weeks.

Miller Value Partners mentioned Bank of America Corporation (NYSE:BAC) in its Q1 2022 investor letter. Here is what the firm had to say:

“There are many times when volatility and beta give false signals. Banks outperformed in the post-tech bubble bear market of the early 2000s. At the market peak prior to the financial crisis (when risk was the highest in those names!), Bank of America (NYSE:BAC) had a 0.9x beta (based on the trailing 5 years) suggesting its “risk” was below the market’s. Wrong! It massively underperformed in the financial crisis. Realized beta over the 5 years from the pre-crisis’ 2006 peak measured 2.3x.

A much better indicator of actual risk, both before and after the financial crisis, was the quality of the balance sheet and risk-taking appetite. Beta is backwards looking and non-stationary. Relying on it underestimated risk going into the financial crisis and overestimated coming out of it (its beta has continued to fall over the past decade).

We care greatly about risk. We spend a significant amount of time thinking about the risks to our investments. We measure risk as permanent impairment of capital, which means the prices and values don’t bounce back. Business fundamentals determine risk.”

7. Foot Locker, Inc. (NYSE:FL)

Share Price as of September 19: $39.1

Dividend Yield as of September 19: 4.09%

Foot Locker, Inc. (NYSE:FL) is an American sportswear and footwear retailer that operates over 3,000 stores worldwide. Though the company does not hold any dividend growth track records, it has raised its payouts at a CAGR of 3.65% in the past five years. It currently pays a quarterly dividend of $0.40 per share and has a yield of 4.09%, as recorded on September 19.

At the end of July 2022, Foot Locker, Inc. (NYSE:FL)’s merchandise inventories stood at $1.64 billion, up 52% from the same period last year. The company purchased 1.4 million of its stock for $40 million and paid $38 million in dividends during Q2. Its cash position was also stable as it reported $386 million in cash and cash equivalents.

In August, Baird raised its price target on Foot Locker, Inc. (NYSE:FL) to $40 and maintained a Neutral rating on the shares. The firm appreciated the company’s Q2 earnings and better margin performance.

The number of hedge funds tracked by Insider Monkey owning stakes in Foot Locker, Inc. (NYSE:FL) stood at 28 in Q2 2022, growing from 21 in the previous quarter. The stakes owned by these hedge funds have a consolidated value of nearly $230 million. Ken Griffin, Cliff Asness, and Israel Englander were some of the company’s major stakeholders in Q2.

Miller Value Partners mentioned Foot Locker, Inc. (NYSE:FL) in its Q1 2022 investor letter. Here is what the firm has to say:

“Finally, Foot Locker (NYSE:FL) came under significant pressure during the quarter, with the stock down more than 50% from its highs and valuation not far from early 2020 lows. Nike continues to place a greater focus on their Direct-to-Consumer business, which will decrease their contribution to Foot Locker’s total sales, retreating to historical averages of 50% by 2023. While a near-term headwind to sales, management plans to offset the lost business by expanding distribution to other leading brands, rolling out larger neighborhood free-standing stores, and expanding two new growth banners (WSS & Atmos). WSS stores will provide an off-mall presence and focus on the rapidly growing and underserved Hispanic market. Atmos will provide Foot Locker with the ability to expand into Japan and Asia sneaker market with their digitally led business model. These new growth concepts have a combined potential to add more than $1B in sales by 2024. The company’s balance sheet remains very strong with $800M in cash and management is increasing returns to shareholders through raising the dividend by 40% and announcing a $1.2B share buyback (more than 40% of the float at current share prices). With the next 12 to 18 months as a transition period for the company, the share price weakness provides attractive reward/risk investment potential, near 3x Enterprise Value/Earnings Before Income, Taxes, Depreciation, and Amortization (EV/EBITDA) and close to a 30% normalized free cash flow yield.”

6. Hormel Foods Corporation (NYSE:HRL)

Share Price as of September 19: $45.76

Dividend Yield as of September 19: 2.26%

Hormel Foods Corporation (NYSE:HRL) is a Minnesota-based food processing company that sells a wide variety of food products to its consumers. On September 1, the company reported its fiscal Q3 2022 results, delivering its seventh consecutive quarter of record sales. Its revenue stood at $3.03 billion, up 6% from the same period last year. The company’s cash flow from operations also showed a 143% year-over-year growth at $186 million. In addition to this, the company had $850.3 million in cash and cash equivalents, compared with $613.5 million at the end of October 2021.

Hormel Foods Corporation (NYSE:HRL) is a Dividend King, raising its dividends consecutively for the past 56 years. It currently pays a quarterly dividend of $0.26 per share and has a yield of 2.26%, as recorded on September 19. The company can be a good addition to dividend portfolios alongside The Coca-Cola Company (NYSE:KO), PepsiCo, Inc. (NASDAQ:PEP), and Johnson & Johnson (NYSE:JNJ).

In August, Stephens lifted its price target on Hormel Foods Corporation (NYSE:HRL) to $55 with an Equal Weight rating on the shares, highlighting the company’s underlying business growth.

At the end of June 2022, 27 hedge funds tracked by Insider Monkey owned stakes in Hormel Foods Corporation (NYSE:HRL), down from 30 in the previous quarter. These stakes are collectively valued at over $434.5 million.

Click to continue reading and see 5 Best Cheap DRIP Stocks to Buy Now.

AI, Tariffs, Nuclear Power: One Undervalued Stock Connects ALL the Dots (Before It Explodes!)

Published on June 23, 2025 at by Inan Dogan, PhD

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

AI is eating the world—and the machines behind it are ravenous.

Each ChatGPT query, each model update, each robotic breakthrough consumes massive amounts of energy. In fact, AI is already pushing global power grids to the brink.

Wall Street is pouring hundreds of billions into artificial intelligence—training smarter chatbots, automating industries, and building the digital future. But there’s one urgent question few are asking:

Where will all of that energy come from?

AI is the most electricity-hungry technology ever invented. Each data center powering large language models like ChatGPT consumes as much energy as a small city. And it’s about to get worse.

Even Sam Altman, the founder of OpenAI, issued a stark warning:

“The future of AI depends on an energy breakthrough.”

Elon Musk was even more blunt:

“AI will run out of electricity by next year.”

As the world chases faster, smarter machines, a hidden crisis is emerging behind the scenes. Power grids are strained. Electricity prices are rising. Utilities are scrambling to expand capacity.

And that’s where the real opportunity lies…

One little-known company—almost entirely overlooked by most AI investors—could be the ultimate backdoor play. It’s not a chipmaker. It’s not a cloud platform. But it might be the most important AI stock in the US owns critical energy infrastructure assets positioned to feed the coming AI energy spike.

As demand from AI data centers explodes, this company is gearing up to profit from the most valuable commodity in the digital age: electricity.

The “Toll Booth” Operator of the AI Energy Boom

It owns critical nuclear energy infrastructure assets, positioning it at the heart of America’s next-generation power strategy.
It’s one of the only global companies capable of executing large-scale, complex EPC (engineering, procurement, and construction) projects across oil, gas, renewable fuels, and industrial infrastructure.
It plays a pivotal role in U.S. LNG exportation—a sector about to explode under President Trump’s renewed “America First” energy doctrine.

Trump has made it clear: Europe and U.S. allies must buy American LNG.

And our company sits in the toll booth—collecting fees on every drop exported.

But that’s not all…

As Trump’s proposed tariffs push American manufacturers to bring their operations back home, this company will be first in line to rebuild, retrofit, and reengineer those facilities.

AI. Energy. Tariffs. Onshoring. This One Company Ties It All Together.

While the world is distracted by flashy AI tickers, a few smart investors are quietly scooping up shares of the one company powering it all from behind the scenes.

AI needs energy. Energy needs infrastructure.

And infrastructure needs a builder with experience, scale, and execution.

This company has its finger in every pie—and Wall Street is just starting to notice.

Wall Street is noticing this company also because it is quietly riding all of these tailwinds—without the sky-high valuation.

While most energy and utility firms are buried under mountains of debt and coughing up hefty interest payments just to appease bondholders…

This company is completely debt-free.

In fact, it’s sitting on a war chest of cash—equal to nearly one-third of its entire market cap.

It also owns a huge equity stake in another red-hot AI play, giving investors indirect exposure to multiple AI growth engines without paying a premium.

And here’s what the smart money has started whispering…

The Hedge Fund Secret That’s Starting to Leak Out

This stock is so off-the-radar, so absurdly undervalued, that some of the most secretive hedge fund managers in the world have begun pitching it at closed-door investment summits.

They’re sharing it quietly, away from the cameras, to rooms full of ultra-wealthy clients.

Why? Because excluding cash and investments, this company is trading at less than 7 times earnings.

And that’s for a business tied to:

The AI infrastructure supercycle
The onshoring boom driven by Trump-era tariffs
A surge in U.S. LNG exports
And a unique footprint in nuclear energy—the future of clean, reliable power

You simply won’t find another AI and energy stock this cheap… with this much upside.

This isn’t a hype stock. It’s not riding on hope.

It’s delivering real cash flows, owns critical infrastructure, and holds stakes in other major growth stories.

This is your chance to get in before the rockets take off!

Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.

The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.

As an investor, you want to be on the side of the winners, and AI is the winning ticket.

The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI.

From computer scientists to mathematicians, the next generation of innovators is pouring its energy into this field.

This influx of talent guarantees a constant stream of groundbreaking ideas and rapid advancements.

By investing in AI, you’re essentially backing the future.

The future is powered by artificial intelligence, and the time to invest is NOW.

Don’t be a spectator in this technological revolution.

Dive into the AI gold rush and watch your portfolio soar alongside the brightest minds of our generation.

This isn’t just about making money – it’s about being part of the future.

So, buckle up and get ready for the ride of your investment life!

Act Now and Unlock a Potential 100+% Return within 12 to 24 months.

We’re now offering month-to-month subscriptions with no commitments.

For a ridiculously low price of just $9.99 per month, you can unlock our in-depth investment research and exclusive insights – that’s less than a single fast food meal!

Here’s why this is a deal you can’t afford to pass up:

Access to our Detailed Report on our AI, Tariffs, and Nuclear Energy Stock with 100+% potential upside within 12 to 24 months
BONUS REPORT on our #1 AI-Robotics Stock with 10000% upside potential: Our in-depth report dives deep into our #1 AI/robotics stock’s groundbreaking technology and massive growth potential.
One New Issue of Our Premium Readership Newsletter: You will also receive one new issue per month and at least one new stock pick per month from our monthly newsletter’s portfolio over the next 12 months. These stocks are handpicked by our research director, Dr. Inan Dogan.
One free upcoming issue of our 70+ page Quarterly Newsletter: A value of $149
Bonus Content: Premium access to members-only fund manager video interviews
Ad-Free Browsing: Enjoy a month of investment research free from distracting banner and pop-up ads, allowing you to focus on uncovering the next big opportunity.
Lifetime Price Guarantee: Your renewal rate will always remain the same as long as your subscription is active.
30-Day Money-Back Guarantee: If you’re not absolutely satisfied with our service, we’ll provide a full refund within 30 days, no questions asked.

Space is Limited! Only 1000 spots are available for this exclusive offer. Don’t let this chance slip away – subscribe to our Premium Readership Newsletter today and unlock the potential for a life-changing investment.

Here’s what to do next:

1. Head over to our website and subscribe to our Premium Readership Newsletter for just $9.99.

2. Enjoy a month of ad-free browsing, exclusive access to our in-depth report on the Trump tariff and nuclear energy company as well as the revolutionary AI-robotics company, and the upcoming issues of our Premium Readership Newsletter.

3. Sit back, relax, and know that you’re backed by our ironclad 30-day money-back guarantee.

Don’t miss out on this incredible opportunity! Subscribe now and take control of your AI investment future!

Subscribe Now!

No worries about auto-renewals! Our 30-Day Money-Back Guarantee applies whether you’re joining us for the first time or renewing your subscription a month later!

Insider Monkey Ads

A New Dawn is Coming to U.S. Stocks

Published on June 13, 2025 at by Insider Monkey Staff

I work for one of the largest independent financial publishers in the world – representing over 1 million people in 148 countries.

We’re independently funding today’s broadcast to address something on the mind of every investor in America right now…

Should I put my money in Artificial Intelligence?

Here to answer that for us… and give away his No. 1 free AI recommendation… is 50-year Wall Street titan, Marc Chaikin.

Marc’s been a trader, stockbroker, and analyst. He was the head of the options department at a major brokerage firm and is a sought-after expert for CNBC, Fox Business, Barron’s, and Yahoo! Finance…

But what Marc’s most known for is his award-winning stock-rating system. Which determines whether a stock could shoot sky-high in the next three to six months… or come crashing down.

That’s why Marc’s work appears in every Bloomberg and Reuters terminal on the planet…

And is still used by hundreds of banks, hedge funds, and brokerages to track the billions of dollars flowing in and out of stocks each day.

He’s used this system to survive nine bear markets… create three new indices for the Nasdaq… and even predict the brutal bear market of 2022, 90 days in advance.

Click to continue reading…

Insider Monkey Ads

Markets

Insider Trading

Hedge Funds

Retirement

Opinion

Log In

Sign Up