12 52-Week Low Dividend Stocks To Consider

3. Advance Auto Parts, Inc. (NYSE:AAP)

Number of Hedge Fund Holders: 39

1-Year Share Price Decline as of  September 4: 35.29%

52 Week Range: $41.12 – $88.56

Advance Auto Parts, Inc. (NYSE:AAP) is a North Carolina-based auto parts company that operates a chain of retail stores and an online platform, serving customers across the US. The stock has not only decreased over the past year but has also dropped by 72% over the past five years due to ongoing business challenges. In the second quarter of 2024, the company revised its full-year sales forecast downward and reduced the midpoint of its annual earnings outlook from $4 to $2.25.

However, Advance Auto Parts, Inc. (NYSE:AAP) is making some changes to improve its performance. It is making headway with its decisive actions, placing greater emphasis on the Advance blended box. The company also announced that Worldpac has been sold for $1.5 billion. This sale represented a key milestone in the company’s turnaround efforts, allowing for a stronger balance sheet and a more focused strategy. The next phase of the strategic and operational review will concentrate on the remaining Advance business, aiming to enhance sales performance and asset productivity to achieve better returns for shareholders. Cove Street Capital also mentioned this in its Q2 2024 investor letter:

“We have three new more material positions added in the quarter. Advance Auto Parts, Inc. (NYSE:AAP) is the third wheel in a very profitable industry of retail/commercial selling of replacement auto parts. Autozone and O’Reilly have shown how to do this well whereas AAP has shown how NOT to. We think new management, a new Board, and a fiendishly simple strategic plan is a path toward a double in the stock price. We consider the downside here to be boredom if the “fiendishly simple” part proves to be more durable than we anticipate.”

Advance Auto Parts, Inc. (NYSE:AAP), one of the best 52-week low stocks, has been paying regular dividends to shareholders since 2006. The company’s quarterly dividend comes in at $0.25 per share and has a dividend yield of 2.43%, as of September 4.

At the end of q2 2024, 39 hedge funds tracked by Insider Monkey held stakes in Advance Auto Parts, Inc. (NYSE:AAP), the same as in the previous quarter. These stakes have a total value of more than $653 million. Dan Loeb’s Third Point owned the largest stake in the company, worth roughly $95 million.