In this article, we discuss 10 best dividend stocks under $10. If you want to see more cheap dividend payers, click 5 Best Dividend Stocks Under $10.
The stock market tumbled further in April, with the Nasdaq Composite falling 13.3%, which was the worst monthly performance recorded since 2008. Similarly, the S&P 500 dropped 8.8% and finished April at levels that were last observed in May 2021. The Nasdaq 100 declined 23% from its record-high in November 2021, and it is in the bear territory amid the broad market sell-off.
The raging inflation is leading the Federal Reserve to be exceedingly aggressive in its interest rates policy. Similarly, investors are concerned about the stagnant global economic growth, due to high oil prices, the Russia-Ukraine war, and an outbreak of Covid-19 in China.
In this market, it is prudent to look out for dividend paying stocks as a way to secure an investment portfolio against market volatility. Dividends gains negate the share price losses in a portfolio, which makes income investing a successful strategy amid turbulent market backdrops. Investors usually flock to dividend names such as Johnson & Johnson (NYSE:JNJ), The Coca-Cola Company (NYSE:KO), and The Procter & Gamble Company (NYSE:PG), however, it is a good idea for beginners to start out their investment journey with affordable dividend payers.
Our Methodology
We selected dividend stocks priced under $10 as of May 9 for this article, ensuring that the chosen companies received optimistic analyst ratings and displayed strong hedge fund sentiment. We have mentioned the latest dividend payouts for the companies, as well as the dividend yields as of May 9.
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Best Dividend Stocks Under $10
10. B2Gold Corp. (NYSE:BTG)
Number of Hedge Fund Holders: 20
Dividend Yield as of May 9: 3.84%
Share Price as of May 9: $4.17
Headquartered in Vancouver, British Columbia, B2Gold Corp. (NYSE:BTG) is a gold producer with three operating mines – Fekola Mine in Mali, Masbate Mine in the Philippines, and Otjikoto Mine in Namibia. B2Gold Corp. (NYSE:BTG)’s dividend yield on May 9 came in at 3.84%, whereas, the average yield for the materials sector stands at 2.82%.
On May 3, B2Gold Corp. (NYSE:BTG) reported earnings for the first fiscal quarter of 2022. The company posted an EPS of $0.06, beating consensus estimates by $0.01. The $365.58 million revenue outperformed market predictions by $3.58 million.
B2Gold Corp. (NYSE:BTG) declared on February 23 a $0.04 per share quarterly dividend, in line with previous. The dividend was paid on March 17, to shareholders of record on March 9.
National Bank analyst Don DeMarco on April 20 maintained an Outperform rating on B2Gold Corp. (NYSE:BTG) and raised the firm’s price target on the shares to C$8.50 from C$7.75.
According to the fourth quarter database of Insider Monkey, B2Gold Corp. (NYSE:BTG) was found in the public investment portfolios of 20 hedge funds, compared to 16 funds in the earlier quarter. The total stakes owned in Q4 2021 amounted to $243.4 million, up from $176.3 million in Q3. Jim Simons’ Renaissance Technologies is the leading shareholder of B2Gold Corp. (NYSE:BTG), with more than 33 million shares worth $130.3 million.
In addition to Johnson & Johnson (NYSE:JNJ), The Coca-Cola Company (NYSE:KO), and The Procter & Gamble Company (NYSE:PG), institutional investors have B2Gold Corp. (NYSE:BTG) on their radar.
9. Companhia Brasileira de Distribuição (NYSE:CBD)
Number of Hedge Fund Holders: 10
Dividend Yield as of May 9: 1.81%
Share Price as of May 9: $3.94
Companhia Brasileira de Distribuição (NYSE:CBD) was founded in 1948 and is headquartered in São Paulo, Brazil. The company operates as a retailer of food, clothing, home appliances, electronics, and other household essentials via its network of department stores in Brazil. Companhia Brasileira de Distribuição (NYSE:CBD)’s Q1 2022 revenue of $2.05 billion outperformed Street estimates by about $72 million.
On May 5, Companhia Brasileira de Distribuição (NYSE:CBD) declared a $0.061 per share quarterly dividend. The dividend is distributable on June 22, to shareholders of the company as of the close of business on May 9. Companhia Brasileira de Distribuição (NYSE:CBD)’s dividend yield on May 9 stood at 1.81% and it is one of the best dividend stocks under $10.
BofA analyst Robert Ford Aguilar upgraded Companhia Brasileira de Distribuição (NYSE:CBD) on May 4 to Buy from Underperform, raising the price target to R$28 from R$25. He expects the company and its affiliates to benefit from the soaring food inflation and sees the recent reopening of tourism in Uruguay and exits in Colombia supporting higher growth.
According to Insider Monkey’s Q4 data, 10 hedge funds placed long calls on Companhia Brasileira de Distribuição (NYSE:CBD), with collective stakes of $5.5 million, compared to 8 funds in the last quarter, holding stakes in the company valued at $5.7 million. Paul Marshall and Ian Wace’s Marshall Wace LLP is the biggest shareholder of Companhia Brasileira de Distribuição (NYSE:CBD), with 436,765 shares worth $1.74 million.
8. Equitrans Midstream Corporation (NYSE:ETRN)
Number of Hedge Fund Holders: 17
Dividend Yield as of May 9: 8.20%
Share Price as of May 9: $7.44
Equitrans Midstream Corporation (NYSE:ETRN) is a Pennsylvania-based company that deals in natural gas gathering, transmission and storage, and water services in the Appalachian Basin. Equitrans Midstream Corporation (NYSE:ETRN)’s dividend yield on May 9 came in at 8.20%. Priced at $7.44, it is one of the top yielding affordable dividend stocks.
On April 26, Equitrans Midstream Corporation (NYSE:ETRN) declared a quarterly dividend of $0.15 per share, in line with previous. The dividend is payable on May 13, to shareholders of record on May 4.
In its FY 2022 guidance, Equitrans Midstream Corporation (NYSE:ETRN) expects net income to fall between $250 million and $330 million, with deferred revenue of $355 million. The company sees free cash flow for the year between $280 million and $360 million, and expects to retain free cash flow of $20 million to $100 million.
Goldman Sachs analyst John Mackay upgraded Equitrans Midstream Corporation (NYSE:ETRN) to Buy from Neutral with a price target of $9 on March 3. The analyst stated that the risks to the Mountain Valley Pipeline are “essentially fully-priced”. While the pipeline will likely continue to generate mixed headlines for the company until it is either concluded or canceled, the risk-reward strongly favors a bullish stance, the analyst told investors.
Among the hedge funds tracked by Insider Monkey, 17 funds were long Equitrans Midstream Corporation (NYSE:ETRN) at the end of December 2021, with collective stakes exceeding $117 million. Michael Lowenstein’s Kensico Capital is a prominent shareholder of the company, with 3.14 million shares worth $32.5 million.
Here is what Miller Howard Investments has to say about Equitrans Midstream Corporation (NYSE:ETRN) in its Q3 2021 investor letter:
“Our best holdings for the quarter were companies poised to benefit from the recovery. Equitrans Midstream (ETRN), our third largest contributor, could see higher volumes on its pipelines given the recovery in natural gas prices.”
7. Empire State Realty Trust, Inc. (NYSE:ESRT)
Number of Hedge Fund Holders: 14
Dividend Yield as of May 9: 1.69%
Share Price as of May 9: $8.45
Empire State Realty Trust, Inc. (NYSE:ESRT) is an American real estate investment trust that owns and leases out high-end office and retail properties in Manhattan and the New York metropolitan area, including the Empire State Building. Empire State Realty Trust, Inc. (NYSE:ESRT)’s dividend yield on May 9 stood at 1.69%.
On April 27, Empire State Realty Trust, Inc. (NYSE:ESRT) announced a Q1 FFO of $0.18, beating consensus estimates by $0.03. The revenue of $164.03 million grew 12.9% year-over-year, ahead of analysts’ predictions by $29.24 million. The company expects FY 2022 core FFO to fall between $0.73 and $0.78 per fully diluted share, compared to Street consensus of $0.77.
Empire State Realty Trust, Inc. (NYSE:ESRT) declared on March 4 a $0.035 per share quarterly dividend, in line with previous. The dividend was paid on March 31, to shareholders of record on March 15.
Evercore ISI analyst Steve Sakwa on May 2 upgraded Empire State Realty Trust, Inc. (NYSE:ESRT) to Outperform from In Line with an $11 price target, which offers 29% total return potential. Viewing the company’s Q1 results and commentary, the analyst raised estimates for 2022 and 2023 and cited “solid” earnings growth, “inexpensive” valuation, and “strong balance sheet with significant liquidity” for the upgrade.
According to Insider Monkey’s Q4 database, 14 hedge funds were long Empire State Realty Trust, Inc. (NYSE:ESRT), up from 7 funds in the last quarter. The total stakes held in the fourth quarter amounted to $153 million. Mason Hawkins’ Southeastern Asset Management is the largest shareholder of the company, with over 15 million shares worth $135.2 million.
Here is what Longleaf Partners Small-Cap Fund has to say about Empire State Realty Trust, Inc. (NYSE:ESRT) in its Q3 2021 investor letter:
“Empire State Realty Trust (ESRT) also detracted for various reasons in the quarter that are out of whack vs. their positive value development this year and likely future actions. ESRT’s stock price traded down and back up in the quarter as the delta variant waxed and waned. We had neither banked on a speedy return to the office nor an immediate resumption of international tourists filling the Empire State Building Observatory, so our value was not impacted. We would point to how the company has a demonstrated history of repurchasing shares below net asset value.
Empire State Realty Trust (-16%, -1.01%), the iconic New York City commercial real estate and tourism company, was the top detractor, as discussed above. A retail tenant filing for bankruptcy hurt the stock, but we expect its Empire State Building office space to be quickly released at a higher rent due to Manhattan’s post-COVID reopening and rebounding office market. Observatory tickets are up to 30% of the 2019 level and should continue rebounding over the next year plus. We also believe the company remains on offense when it comes to capital allocation.”
6. Falcon Minerals Corporation (NASDAQ:FLMN)
Number of Hedge Fund Holders: 15
Dividend Yield as of May 9: 10.36%
Share Price as of May 9: $6.95
Falcon Minerals Corporation (NASDAQ:FLMN) is based in Houston, Texas, owning mineral and royalty interests in oil and natural gas properties in North America. Priced at $6.95 and offering a dividend yield of 10.36% as of May 9, Falcon Minerals Corporation (NASDAQ:FLMN) is one of the best dividend stocks under $10.
On May 4, Falcon Minerals Corporation (NASDAQ:FLMN) declared a $0.18 per share quarterly dividend, a 24.1% increase from its prior dividend of $0.145. The dividend is payable on May 31, to shareholders of the company as of May 18.
Piper Sandler analyst Mark Lear on April 7 reiterated an Overweight rating on Falcon Minerals Corporation (NASDAQ:FLMN) and raised the firm’s price target on the shares to $8 from $5.40. With Russian oil and product exports off the market, Piper’s Energy Macro team categorizes the United States as one of the only places to offer long-term supply of energy sources, the analyst told investors. The supply tightness in the energy market ultimately results in material upside to crude prices, which has positive implications for the stocks despite the solid performance year-to-date, the analyst added.
According to the fourth quarter database of Insider Monkey, Falcon Minerals Corporation (NASDAQ:FLMN) was found in the public stock portfolios of 15 hedge funds, compared to 19 funds in the last quarter. Wilmot B. Harkey and Daniel Mack’s Nantahala Capital Management is the biggest shareholder of the company, with 2.3 million shares worth $11.5 million.
Like Johnson & Johnson (NYSE:JNJ), The Coca-Cola Company (NYSE:KO), and The Procter & Gamble Company (NYSE:PG), Falcon Minerals Corporation (NASDAQ:FLMN) is a notable dividend candidate for investors looking to explore the stock market.
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Disclosure: None. 10 Best Dividend Stocks Under $10 is originally published on Insider Monkey.
