10 Best Dividend Penny Stocks to Buy Now

5. Ambev S.A. (NYSE:ABEV)

Number of Hedge Funds: 18 (2024Q2)

Share Price as of the Close of September 25: $2.33

Formerly called Inbev Participacoes Societarias SA, Ambev S.A. (NYSE:ABEV) is a Brazil-based company engaged in the production, distribution, and sale of beer, draft beer, carbonated soft drinks, malt and food, other alcoholic beverages, and non-alcoholic and non-carbonated products in Brazil, Central America and Caribbean, Latin America South, and Canada. It has a broad product range, spanning from popular beer brands such as Skol and Brahma to soft drinks such as Soda Antarctica.

The beverage giant has demonstrated strong quarter 2 results and volume growth, particularly in Brazil, Central America, and the Caribbean (CAC). The company reports a 6.1% year-over-year increase in revenues, reaching BRL 20 billion (US$4 billion). Net income in the period was BRL 2,396.31 million (US$480 million) compared to BRL 2,503 million (US$500.6 million) a year ago. In particular, the beer segment of Brazil saw strong revenue growth of 7% year-over-year, due to stronger volumes. Meanwhile, the CAC division saw a 3% YoY volume growth. Both these regions offset the weak performance witnessed in the LAS and Canada regions.

Ambev S.A. (NYSE:ABEV)’s premium and super-premium brands, such as Corona, Spaten, and Original, saw strong volume growth in the low teens. Budweiser also drove high-teens growth within the core plus segment, while core brands like Brahma and Antarctica demonstrated stability with a slight volume increase in the low single digits. This steady performance across various product categories highlights the company’s ability to meet diverse consumer preferences.

Ambev S.A. (NYSE:ABEV) has managed to pay out on average 80% of net income in the form of dividends and IOC. The dividend yield as of September 24, 2024 is 6.48%. At the end of the second quarter, 18 hedge funds tracked by IM had stakes in the company, representing a collective worth of $1.97 billion.