Markets

Insider Trading

Hedge Funds

Retirement

Opinion

10 Dividend Stocks That Are Too Cheap To Ignore

In this article, we discuss 5 dividend stocks that are too cheap to ignore. You can skip our detailed analysis of dividend stocks and their returns in the past, and go directly to read 5 Dividend Stocks That Are Too Cheap To Ignore

As the market plunges to its new lows in 2022, investors are betting on cheap dividend stocks to generate balanced income in these times. Historically, dividend stocks have performed well during times of financial instability. Especially companies with strong dividend growth track records are more popular among investors due to their regular income. In this regard, companies like The Coca-Cola Company (NYSE:KO), Johnson & Johnson (NYSE:JNJ), and The Procter & Gamble Company (NYSE:PG) are gaining ground among investors due to their long dividend growth streaks.

Studies conducted in the past show that dividends contributed significantly to overall returns of the market. According to a report published by London Business School and Credit Suisse in 2011, the total annual average return of the US stock market from 1900 to 2011 was 5%. However, reinvested dividends took the total return to 9.4%. The report also mentioned that for long-term investors, dividends stocks are the most reliable option. Another research by Danske Capital showed that in the last ten bull markets from 2005 to 2015, dividend-paying stocks outperformed their non-dividend peers by an average of 3% per year.

With rising interest rates and high inflation this year, investors are preferring dividend stocks over other asset classes. The returns of dividend stocks also comply with investors’ inclination toward them. The MSCI World High Dividend Yield Index, which tracks the performance of large- and mid-cap stocks across 23 developed markets, fell by 16.17% in 2022 through September, compared with a decline of 25.13% in the MSCI World index during the same period.

Image by Steve Buissinne from Pixabay

Our Methodology:

The dividend stocks mentioned below have share prices below $35, as of October 10. We reviewed dividend policies, cash position, and the overall financial health of these companies to determine the best dividend stocks. The stocks are ranked according to their share prices.

10 Dividend Stocks That Are Too Cheap To Ignore

10. Rithm Capital Corp. (NYSE:RITM)

Share Price as of October 10: $7.29

Rithm Capital Corp. (NYSE:RITM) is an American company that provides capital and services to real estate and financial sectors. The company was previously known as New Residential Investment Corp and changed its name this August.

Rithm Capital Corp. (NYSE:RITM)’s cash position remained stable during Q2 2022 despite the current financial turmoil. It reported earnings for distribution of $145.8 million and of this amount, it paid $116 million in dividends. The company’s operating cash flow for the quarter came in at $1.46 billion, compared with $320 million in the prior-year quarter.

On September 22, Rithm Capital Corp. (NYSE:RITM) declared a quarterly dividend of $0.25 per share, consistent with its previous dividend. Since 2013, the company has cumulatively paid $4.1 billion in dividends to shareholders, coming through as one of the best dividend stocks on our list. As of October 10, the stock’s dividend yield came in at 13.72%.

In September, Piper Sandler upgraded Rithm Capital Corp. (NYSE:RITM) to Neutral with a $9 price target, highlighting the company’s large mortgage servicing rights portfolio.

At the end of Q2 2022, 18 hedge funds tracked by Insider Monkey owned stakes in Rithm Capital Corp. (NYSE:RITM), compared with 19 in the previous quarter. The collective value of these stakes is over $50.5 million. HBK Investments was the company’s leading stakeholder in Q2.

In addition to some of the best dividend stocks like The Coca-Cola Company (NYSE:KO), Johnson & Johnson (NYSE:JNJ), and The Procter & Gamble Company (NYSE:PG), Rithm Capital Corp. (NYSE:RITM) is also eyed by investors due to its growing payouts.

9. Hanesbrands Inc. (NYSE:HBI)

Share Price as of October 10: $7.37

Hanesbrands Inc. (NYSE:HBI) is a North Carolina-based multinational clothing company that specializes in everyday basic wear. Though the company has not raised its dividends since 2017, it maintained its payouts even during the pandemic. It currently pays a quarterly dividend of $0.15 per share and has a dividend yield of $8.14 per share. In Q2, the company paid its 38th consecutive dividend to shareholders, which makes it one of the best dividend stocks under $35.

In Q2 2022, Hanesbrands Inc. (NYSE:HBI) has a total of $1 billion available, $248 of which represented the cash and cash equivalents and approximately $720 million of available capacity under its credit facility. The company’s inventory at the end of the quarter stood at $2.09 billion, showing a 37% growth from the same period last year.

In August, CL King maintained a Buy rating on Hanesbrands Inc. (NYSE:HBI) with a $15 price target, appreciating the company’s recent quarterly earnings. The firm also mentioned that retailers have been noting changing consumer behaviors after the pandemic.

At the end of Q2 2022, 18 hedge funds tracked by Insider Monkey owned stakes in Hanesbrands Inc. (NYSE:HBI), down from 23 in the previous quarter. These stakes have a total value of over $164.8 million.

Chartwell Investment Partners mentioned Hanesbrands Inc. (NYSE:HBI) in its Q2 2022 investor letter. Here is what the firm has to say:

“The three worst-performing stocks in the Dividend Equity accounts includes Hanesbrands (NYSE:HBI, 1.1%), down 30.1%. Hanesbrands’ management is executing well, but the challenging environment includes supply-chain headwinds, higher input costs and some post-Covid inventory build-up.”

8. AT&T Inc. (NYSE:T)

Share Price as of October 10: $14.9

AT&T Inc. (NYSE:T) is a multinational telecommunications company that is also one of the largest providers of cell phone services in the US. In September, Barclays maintained an Equal Weight rating on the stock with an $18 price target, acknowledging the company’s overall pricing growth and cable headline metrics.

AT&T Inc. (NYSE:T) made it to our list of the best dividend stocks as the company holds a 23-year track record of consistent dividend growth. It currently pays a dividend of $0.2775 per share every quarter. The stock’s dividend yield stood at 7.43% on October 10.

At the end of Q2 2022, 55 hedge funds tracked by Insider Monkey owned stakes in AT&T Inc. (NYSE:T), down from 74 in the previous quarter. These stakes have a total value of over $1.7 billion. With nearly $240 million worth of stakes, D E Shaw was one of the company’s most prominent stakeholders in Q2.

Chartwell Investment Partners mentioned AT&T Inc. (NYSE:T) in its Q2 2022 investor letter. Here is what the firm has to say:

“In the Dividend Equity accounts, the three best performers in Q2 includes AT&T (NYSE:T, 2.5%), up 17.1%. AT&T completed the spin of the WarnerMedia business (HBO, CNN, etc.), and the market seemed to like the “back-to-basics” approach. Also, the telco business is expected to do relatively well in an inflationary environment.”

7. Manulife Financial Corporation (NYSE:MFC)

Share Price as of October 10: $15.9

Manulife Financial Corporation (NYSE:MFC) is a Canadian insurance company that also provides financial services to its consumers. In Q2 2022, the company reported an operating cash flow of over $4.8 billion, up from $2.5 billion in the previous quarter. Its global wealth and asset management net inflows stood at over $1.7 billion, with an expense efficiency ratio of 49.2%.

Manulife Financial Corporation (NYSE:MFC) has been raising its dividends consistently for the past 8 years. Moreover, its five-year dividend CAGR stood at 11.14%, which makes it one of the best dividend stocks on our list. It currently pays a quarterly dividend of C$0.33 per share for a dividend yield of 6.35%, as of October 10.

Street analysts presented a positive stance on Manulife Financial Corporation (NYSE:MFC) due to the company’s growing revenue and improvement in its overall sales. In August, both Desjardins and Canaccord raised their price target on the stock to C$25.

At the end of Q2 2022, 15 hedge funds in Insider Monkey’s database owned stakes in Manulife Financial Corporation (NYSE:MFC), with a total value of over $155 million. With over 2.6 million shares, Galibier Capital Management owned the largest position in the company in Q2.

Harding Loevner mentioned Manulife Financial Corporation (NYSE:MFC) in its Q2 2022 investor letter. Here is what the firm has to say:

Manulife Financial Corporation (NYSE:MFC), the Canadian life insurer operating primarily in North America and Asia, is a new holding. Manulife offers a full suite of life insurance products as well as retirement and wealth management services. While the wealth management and retirement products appeal to the aging populations of the Western world, long-term life insurance products address the needs of the growing number of middle-class families in places like China and southeast Asia. COVID-19-induced lockdowns in China brought the shares down to a significant discount to our estimate of long-term value. The holding now serves as a nice diversifier to our Asia-centered insurers AIA and Ping An.”

6. Franklin Resources, Inc. (NYSE:BEN)

Share Price as of October 10: $21.85

Franklin Resources, Inc. (NYSE:BEN) is one of the world’s largest investment managers. On August 29, the company declared a quarterly dividend of $0.29 per share, in line with its previous dividend. The company is one of the best dividend stocks on our list as it has been raising its dividends consistently for the past 42 years with a five-year dividend CAGR of 7.71%. The stock’s dividend yield came in at 5.31%, as of October 10.

In Q2 2022, Franklin Resources, Inc. (NYSE:BEN) reported an operating cash flow of $820 million, up from $506 million during the same period last year. Its free cash flow stood at $806.7 million, compared with $461.7 million in the prior-year quarter. The company ended the quarter with $5.5 billion available in cash and cash equivalents.

At the end of Q2 2022, 24 hedge funds in Insider Monkey’s database owned investments in Franklin Resources, Inc. (NYSE:BEN), with a total value of over $217.2 million.

Franklin Resources, Inc. (NYSE:BEN) can be a good addition to dividend portfolios alongside some of the best dividend stocks like The Coca-Cola Company (NYSE:KO), Johnson & Johnson (NYSE:JNJ), and The Procter & Gamble Company (NYSE:PG).

Click to continue reading and see 5 Dividend Stocks That Are Too Cheap To Ignore

Suggested articles:

Disclosure. None. 10 Dividend Stocks That Are Too Cheap To Ignore is originally published on Insider Monkey.

AI, Tariffs, Nuclear Power: One Undervalued Stock Connects ALL the Dots (Before It Explodes!)

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

AI is eating the world—and the machines behind it are ravenous.

Each ChatGPT query, each model update, each robotic breakthrough consumes massive amounts of energy. In fact, AI is already pushing global power grids to the brink.

Wall Street is pouring hundreds of billions into artificial intelligence—training smarter chatbots, automating industries, and building the digital future. But there’s one urgent question few are asking:

Where will all of that energy come from?

AI is the most electricity-hungry technology ever invented. Each data center powering large language models like ChatGPT consumes as much energy as a small city. And it’s about to get worse.

Even Sam Altman, the founder of OpenAI, issued a stark warning:

“The future of AI depends on an energy breakthrough.”

Elon Musk was even more blunt:

“AI will run out of electricity by next year.”

As the world chases faster, smarter machines, a hidden crisis is emerging behind the scenes. Power grids are strained. Electricity prices are rising. Utilities are scrambling to expand capacity.

And that’s where the real opportunity lies…

One little-known company—almost entirely overlooked by most AI investors—could be the ultimate backdoor play. It’s not a chipmaker. It’s not a cloud platform. But it might be the most important AI stock in the US owns critical energy infrastructure assets positioned to feed the coming AI energy spike.

As demand from AI data centers explodes, this company is gearing up to profit from the most valuable commodity in the digital age: electricity.

The “Toll Booth” Operator of the AI Energy Boom

  • It owns critical nuclear energy infrastructure assets, positioning it at the heart of America’s next-generation power strategy.
  • It’s one of the only global companies capable of executing large-scale, complex EPC (engineering, procurement, and construction) projects across oil, gas, renewable fuels, and industrial infrastructure.
  • It plays a pivotal role in U.S. LNG exportation—a sector about to explode under President Trump’s renewed “America First” energy doctrine.

Trump has made it clear: Europe and U.S. allies must buy American LNG.

And our company sits in the toll booth—collecting fees on every drop exported.

But that’s not all…

As Trump’s proposed tariffs push American manufacturers to bring their operations back home, this company will be first in line to rebuild, retrofit, and reengineer those facilities.

AI. Energy. Tariffs. Onshoring. This One Company Ties It All Together.

While the world is distracted by flashy AI tickers, a few smart investors are quietly scooping up shares of the one company powering it all from behind the scenes.

AI needs energy. Energy needs infrastructure.

And infrastructure needs a builder with experience, scale, and execution.

This company has its finger in every pie—and Wall Street is just starting to notice.

Wall Street is noticing this company also because it is quietly riding all of these tailwinds—without the sky-high valuation.

While most energy and utility firms are buried under mountains of debt and coughing up hefty interest payments just to appease bondholders…

This company is completely debt-free.

In fact, it’s sitting on a war chest of cash—equal to nearly one-third of its entire market cap.

It also owns a huge equity stake in another red-hot AI play, giving investors indirect exposure to multiple AI growth engines without paying a premium.

And here’s what the smart money has started whispering…

The Hedge Fund Secret That’s Starting to Leak Out

This stock is so off-the-radar, so absurdly undervalued, that some of the most secretive hedge fund managers in the world have begun pitching it at closed-door investment summits.

They’re sharing it quietly, away from the cameras, to rooms full of ultra-wealthy clients.

Why? Because excluding cash and investments, this company is trading at less than 7 times earnings.

And that’s for a business tied to:

  • The AI infrastructure supercycle
  • The onshoring boom driven by Trump-era tariffs
  • A surge in U.S. LNG exports
  • And a unique footprint in nuclear energy—the future of clean, reliable power

You simply won’t find another AI and energy stock this cheap… with this much upside.

This isn’t a hype stock. It’s not riding on hope.

It’s delivering real cash flows, owns critical infrastructure, and holds stakes in other major growth stories.

This is your chance to get in before the rockets take off!

Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.

The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.

As an investor, you want to be on the side of the winners, and AI is the winning ticket.

The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI.

From computer scientists to mathematicians, the next generation of innovators is pouring its energy into this field.

This influx of talent guarantees a constant stream of groundbreaking ideas and rapid advancements.

By investing in AI, you’re essentially backing the future.

The future is powered by artificial intelligence, and the time to invest is NOW.

Don’t be a spectator in this technological revolution.

Dive into the AI gold rush and watch your portfolio soar alongside the brightest minds of our generation.

This isn’t just about making money – it’s about being part of the future.

So, buckle up and get ready for the ride of your investment life!

Act Now and Unlock a Potential 100+% Return within 12 to 24 months.

We’re now offering month-to-month subscriptions with no commitments.

For a ridiculously low price of just $9.99 per month, you can unlock our in-depth investment research and exclusive insights – that’s less than a single fast food meal!

Space is Limited! Only 1000 spots are available for this exclusive offer. Don’t let this chance slip away – subscribe to our Premium Readership Newsletter today and unlock the potential for a life-changing investment.

Here’s what to do next:

1. Head over to our website and subscribe to our Premium Readership Newsletter for just $9.99.

2. Enjoy a month of ad-free browsing, exclusive access to our in-depth report on the Trump tariff and nuclear energy company as well as the revolutionary AI-robotics company, and the upcoming issues of our Premium Readership Newsletter.

3. Sit back, relax, and know that you’re backed by our ironclad 30-day money-back guarantee.

Don’t miss out on this incredible opportunity! Subscribe now and take control of your AI investment future!


No worries about auto-renewals! Our 30-Day Money-Back Guarantee applies whether you’re joining us for the first time or renewing your subscription a month later!

A New Dawn is Coming to U.S. Stocks

I work for one of the largest independent financial publishers in the world – representing over 1 million people in 148 countries.

We’re independently funding today’s broadcast to address something on the mind of every investor in America right now…

Should I put my money in Artificial Intelligence?

Here to answer that for us… and give away his No. 1 free AI recommendation… is 50-year Wall Street titan, Marc Chaikin.

Marc’s been a trader, stockbroker, and analyst. He was the head of the options department at a major brokerage firm and is a sought-after expert for CNBC, Fox Business, Barron’s, and Yahoo! Finance…

But what Marc’s most known for is his award-winning stock-rating system. Which determines whether a stock could shoot sky-high in the next three to six months… or come crashing down.

That’s why Marc’s work appears in every Bloomberg and Reuters terminal on the planet…

And is still used by hundreds of banks, hedge funds, and brokerages to track the billions of dollars flowing in and out of stocks each day.

He’s used this system to survive nine bear markets… create three new indices for the Nasdaq… and even predict the brutal bear market of 2022, 90 days in advance.

Click to continue reading…