10 Best Dividend Penny Stocks to Buy Now

7. Braemar Hotels & Resorts Inc. (NYSE:BHR)

Number of Hedge Funds: 15 (2024Q2)

Share Price as of the Close of September 25: $3.33

Another real estate investment trust, Braemar Hotels & Resorts Inc. (NYSE:BHR) is primarily focused on investing in luxury hotels and resorts. The company owns interest in 15 properties in seven states, the District of Columbia, Puerto Rico, and St. Thomas, U.S. Virgin Islands.

Recently featured on our list of best dividend stocks under $5, Braemar Hotels & Resorts Inc. (NYSE:BHR) seems to be gradually recovering from the impacts of the COVID-19 pandemic. The company has had a decent second quarter, reassuring investors about its financial performance. Their urban hotels performed particularly well with a 6% increase in revenue per available room (RevPAR) compared to the prior year quarter. Moreover, their acquisition of the Four Seasons Resort Scottsdale at Troon North has been performing well and achieved RevPAR growth of 10% in the quarter.

The company’s refinancing program has also progressed, and the sale of Hilton La Jolla Torrey Pines has further added value for shareholders. Other efforts that demonstrate their commitment to maximizing shareholder value include ongoing evaluations of additional potential asset sales, a $50 million preferred share redemption program, and a $50 million share buyback authorization. The company ended the quarter with cash and cash equivalents of $120.3 million and restricted cash of $60.7 million. The majority of restricted cash comprises lender and manager-held reserve accounts. The company has also announced a quarterly common stock dividend of $0.05 per share or $0.20 per diluted share on an annualized basis. This translates to a dividend yield of 6% as of September 24, 2024.

The company remains optimistic about its future performance due to its well-positioned portfolio and continued operational strength. At the end of the second quarter, Braemar Hotels & Resorts Inc. (NYSE:BHR) was included in 15 hedge fund portfolios according to Insider Monkey’s database.