10 Best Dividend-Paying Stocks Under $50

1. Nutrien Ltd. (NYSE:NTR)

Upside Potential as of August 16: 27.90%

Share Price as of the close of August 16: $46.78

Nutrien Ltd. (NYSE:NTR) is a Canadian fertilizer and agriculture company. It is one of the largest producers of potash in the world. The company’s performance has declined primarily due to rising inflation, fluctuating commodity prices, and increased production costs. In the second quarter of 2024, the company reported revenue of $9.9 billion, which not only fell by 13% on a YoY basis but also missed analysts’ estimates by $817 million.

Despite these challenges, Nutrien Ltd. (NYSE:NTR) has demonstrated confidence in its operations throughout the quarter. The company experienced benefits from increased Retail margins, higher fertilizer sales volumes, and reduced operating costs during the first half of 2024. The demand for crop inputs remains robust, leading the company to raise its full-year forecast for global potash demand, supported by strong engagement across all major markets. Though the company has $13.37 billion in debt as of the most recent quarter with a debt-to-equity ratio of 0.53, it shouldn’t concern income investors because its cash generation is in place. In the second quarter of 2024, the company generated $1.8 billion in operating cash flow and paid $266 million to shareholders through dividends.

Nutrien Ltd. (NYSE:NTR) tops our list of the best dividend stocks under $50. It has increased its dividends for five years in a row. Currently, the company pays a quarterly dividend of $0.54 per share and has a dividend yield of 4.64%, as of August 16.

At the end of the second quarter of 2024, 35 hedge funds tracked by Insider Monkey held stakes in Nutrien Ltd. (NYSE:NTR), up from 33 in the previous quarter. These stakes are worth over $386.4 million in total. Among these hedge funds, First Eagle Investment Management was the company’s leading stakeholder in Q2.

While we acknowledge the potential of NTR as an investment, our conviction lies in the belief that some deeply undervalued dividend stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a deeply undervalued dividend stock that is more promising than NTR but that trades at less than 7 times its earnings and yields nearly 10%, check out our report about the dirt cheap dividend stock.

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Disclosure: None. This article is originally published at Insider Monkey.