10 Best Dividend Stocks Under $5

3. Uniti Group Inc. (NASDAQ:UNIT)

Number of Hedge Fund Holders: 22

Share Price as of the close of August 23: $4.49

Uniti Group Inc. (NASDAQ:UNIT) is an American real estate investment trust company that specializes in the acquisition, ownership, and leasing of communications infrastructure. The company was spun off from Windstream to take ownership of the telecommunications company’s fiber optic assets. It continues to make substantial progress on this merger and is on track to complete the transaction by the second half of 2025. As a combined company, they plan to maintain a disciplined growth trajectory, expand their fiber network into Tier II and III markets, and significantly enhance their overall financial profile. With demand for both commercial and residential fiber at an all-time high, Uniti Group Inc. (NASDAQ:UNIT) is well-positioned to capitalize on this growth potential moving forward.

As of June 30, 2024, Uniti Group Inc. (NASDAQ:UNIT) owns around 142,000 miles of fiber routes, 8.6 million fiber strand miles, and various other communication properties across the US. The company reported strong earnings in the second quarter of 2024, driven by high demand for its essential fiber infrastructure. Around 40% of its consolidated bookings during the quarter—the highest since 2022—were fueled by Hyperscalers and Generative AI demand, with expectations for continued growth. The core recurring strategic fiber business saw a 3% increase in the second quarter of 2024 compared to the same period in 2023, while net success-based capital intensity at Uniti Fiber decreased to 27% from 44% in the second quarter of 2023.

For the first six months of the year, Uniti Group Inc. (NASDAQ:UNIT) reported an operating cash flow of $174.3 million, down from approximately $200 million in the same period last year. The company ended the quarter with nearly $619 available in cash and cash equivalents. It is one of the best dividend stocks on our list as the company has paid uninterrupted dividends to shareholders since 2015. Its quarterly dividend currently comes in at $0.15 per share for an impressive dividend yield of 13.51%, as of August 23.

The number of hedge funds tracked by Insider Monkey owning stakes in Uniti Group Inc. (NASDAQ:UNIT) grew to 22 in Q2 2024, from 19 in the previous quarter. These stakes are worth over $75.3 million in total. With over 10 million shares, Elliott Management was the company’s leading stakeholder in Q2.