10 Best Dividend Stocks Under $5

2. Diversified Healthcare Trust (NASDAQ:DHC)

Number of Hedge Fund Holders: 24

Share Price as of the close of August 23: $3.5

An American real estate investment trust company, Diversified Healthcare Trust (NASDAQ:DHC) ranks second on our list of the best dividend stocks under $5. The company owns around $7.2 billion worth of premium healthcare properties across 36 states and Washington, D.C. It aims for diversification throughout the healthcare services sector, including various care delivery methods, research disciplines, and types of properties and locations. In the past 12 months, the stock has surged by over 30%.

In the second quarter of 2024, Diversified Healthcare Trust (NASDAQ:DHC) reported revenue of roughly $372 million, which showed a 7.5% growth from the same period last year. The company also surpassed expectations for normalized FFO due to revenue growth and effective expense management. This performance was bolstered by a 27% year-over-year increase in same-property NOI for SHOP, along with gains in occupancy and rent. In the Medical Office and Life Science Portfolio, the company achieved a 12% rise in weighted average rental rates on over 100,000 square feet of leased space, marking its fourth consecutive quarter of double-digit rent growth. With ongoing favorable trends in the SHOP industry, Diversified Healthcare Trust (NASDAQ:DHC)  is well-positioned to meet its goals for the rest of the year, focusing on achieving its SHOP NOI growth target for 2024 and enhancing its capital and liquidity profile.

Though Diversified Healthcare Trust (NASDAQ:DHC) does not hold any dividend growth streak, the company has been paying regular dividends to shareholders for over two decades. It currently pays a quarterly dividend of $0.01 per share and has a dividend yield of 1.12%, as of August 23.

According to Insider Monkey’s database of Q2 2024, 24 hedge funds held stakes in Diversified Healthcare Trust (NASDAQ:DHC), compared with 27 in the previous quarter. These stakes have a total value of nearly $140 million.