10 Best Dividend Stocks Under $5

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1. Sirius XM Holdings Inc. (NASDAQ:SIRI)

Number of Hedge Fund Holders: 33

Share Price as of the close of August 23: $3.2

After a rough start to 2024, Sirius XM Holdings Inc. (NASDAQ:SIRI) saw a boost in mid-August when Warren Buffett revealed that his company had more than tripled its stake in the broadcasting firm during the second quarter. As a result, the stock jumped nearly 4% between August 14 and August 15. Despite this recent uptick, it remains down over 43% for the year so far.

Sirius XM Holdings Inc. (NASDAQ:SIRI) is facing challenges due to increased competition. Spotify, a leading global player in digital music, recently reported an 18% rise in monthly active users in North America. Meanwhile, Sirius XM is struggling with its streaming service, Pandora, which it acquired over five years ago. Pandora has seen a drop in subscribers, losing 41,000 self-pay subscribers for Pandora Plus and Pandora Premium in the second quarter of 2024, bringing the total down to six million. Additionally, Sirius XM Holdings Inc. (NASDAQ:SIRI)’s Q2 revenue fell by 3% year-over-year to $3.18 billion. The company’s own subscriber base has also declined, dropping from 35 million in 2020 to 33 million in the most recent quarter.

That said, Sirius XM Holdings Inc. (NASDAQ:SIRI) is attractive for income investors because of its solid dividend history. The company has been growing its dividends for seven consecutive years, which makes it one of the best dividend stocks under $5. It currently offers a quarterly dividend of $0.0266 per share and has a dividend yield of 3.42%, as of August 23.

Sirius XM Holdings Inc. (NASDAQ:SIRI) remained popular among elite money managers during the second quarter of 2024, as hedge fund positions in the company grew to 33, from 17 in the previous quarter, according to Insider Monkey’s database. These stakes have a total worth of nearly $530 million.

Overall, Sirius XM Holdings Inc. (NASDAQ:SIRI) ranks first on our list. While we acknowledge the potential for SIRI to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than NVDA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. 

READ NEXT: $30 Trillion Opportunity: 15 Best Humanoid Robot Stocks to Buy According to Morgan Stanley and Jim Cramer Says NVIDIA ‘Has Become A Wasteland’.

Disclosure: None. This article is originally published at Insider Monkey.

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