In this article, we will analyze the list of the best 52-week low stocks that pay dividends.
Dividend stocks have noticeably lagged over the past year or so, with tech stocks dominating the spotlight. However, with major tech companies beginning to implement dividend policies, there is renewed optimism for investors, offering a mix of growth and dividend potential. Currently, all eyes are on the Fed’s upcoming decision on interest rate cuts, which could significantly benefit dividend-paying stocks.
While keeping an eye on the future performance of dividend stocks is crucial, it’s also wise to look back and see how these equities have weathered different market storms. A report from S&P Dow Jones Indices revealed that dividends have been crucial in generating overall equity returns. Since 1926, dividends have accounted for about 32% of the total return for the broader market, with capital appreciation contributing 68%. Consequently, both reliable dividend income and the potential for capital appreciation are key factors in setting expectations for total returns.
Also read: 14 Best 52-Week High Stocks to Buy According to Short Sellers
Inflation is rarely a friend to investments, as the past year has demonstrated. However, dividend stocks have historically held their ground during periods of high inflation. In the 1940s, 1960s, and 1970s—decades characterized by high inflation and total returns below 10%—dividends made a significant contribution to overall returns, as reported by Hartford Funds.
Among dividend strategies, the Dividend Aristocrats Index is the most well-known, tracking companies with at least 25 consecutive years of dividend growth. These stocks are generally less volatile than other asset classes, according to S&P Dow Jones Indices. Over the long term, the Dividend Aristocrats have outperformed the broader market with lower volatility, resulting in higher risk-adjusted returns. The index’s ability to protect against downside risk is evident in its capture ratios: it has outperformed the market in 69.34% of down months and 43.61% of up months. Moreover, the Dividend Aristocrats experienced a smaller drawdown compared to the benchmark index.
Analysts believe that the movement of returns on investments is shaped by market forces. Daniel Peris, a portfolio manager with Federated Hermes and author of a recent book on the future of dividends, suggested that stock market price appreciation alone might not meet the needs of income-seeking investors in the coming years. This, he believed, would likely drive companies to increase their payouts to remain competitive with cash and bonds. He indicated that more companies might start offering dividends and make them a more significant part of their value proposition. However, investors need to be cautious when investing in dividend equities. According to Michael Clarfeld, who manages the Dividend Strategy portfolios at ClearBridge Investments, dividend investing is about making informed decisions by examining a company’s cash flows and how they distribute payouts to investors.
The recent dip in the performance of dividend stocks has made them more attractive to investors. The Dividend Aristocrats Index has seen an increase of nearly 9% since the beginning of 2024, while the broader market has returned 16.5%. These stocks could present a good entry point for investors due to the steady income they offer, providing stability and predictability for a portfolio during volatile times. Given this, we will take a look at some of the best 52-week low stocks that pay dividends.
Image by Sergei Tokmakov Terms.Law from Pixabay
Our Methodology:
For this article, we first listed down all dividend stocks that recently hit their 52-week lows. We then used Insider Monkey’s exclusive database of 912 leading hedge funds to get the hedge fund sentiment for each stock. Finally, we narrowed our list to 12 of these stocks that had the highest number of hedge fund investors, as tracked by Insider Monkey in Q2 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points. (see more details here).
12. Hillenbrand, Inc. (NYSE:HI)
Number of Hedge Fund Holders: 7
1-Year Share Price Decline as of September 4: 31.8%
52 Week Range: $30.57 – $50.58
Hillenbrand, Inc. (NYSE:HI) is an Indiana-based company that specializes in industrial processing solutions and materials handling equipment. In the past 12 months, the stock is down by nearly 32% due to a difficult macro environment. Many industrial manufacturers are facing an uncertain time, as their customers are concerned about the state of the economy and are holding off on major, costly expansions.
Hillenbrand, Inc. (NYSE:HI)’s latest quarterly earnings somewhat reassured investors about its operations, although it isn’t likely to bring about any major changes for the business. In fiscal Q3 2024, the company reported revenue of $787 million, which showed a 10% growth from the same period last year. The revenue mainly increased due to its FPM acquisition. On the other hand, due to the difficult economic backdrop, the company saw much lower than anticipated orders and revenue in its Advanced Process Solutions segment. This performance was largely driven by ongoing delays in customer projects, which became more prevalent during the quarter as concerns about interest rates, inflation, and overall economic uncertainty persisted.
From a dividend perspective, Hillenbrand, Inc. (NYSE:HI)’s cash position also appeared weak. Debt reduction remains the primary focus for capital allocation, but cash flow is still being affected by the sluggish demand environment. Consequently, the company expects its deleveraging efforts to face challenges until order levels return to normal. Its operating cash flow for the quarter came in at $46 million, down significantly by 49% from the same period last year.
That said, Hillenbrand, Inc. (NYSE:HI) remained committed to its shareholder obligation. During the quarter, the company returned approximately $16 million to shareholders in dividends. Moreover, it has raised its payouts for 17 consecutive years, which makes HI one of the best 52-week low stocks that pay dividends. It currently pays a quarterly dividend of $0.2225 per share and has a dividend yield of 2.88%, as of September 4.
At the end of Q2 2024, 7 hedge funds tracked by Insider Monkey owned stakes in Hillenbrand, Inc. (NYSE:HI), up from 6 in the previous quarter. These stakes have a total value of over $26.8 million. Among these hedge funds, Adage Capital Management was the company’s leading stakeholder in Q2.
11. Mercer International Inc. (NASDAQ:MERC)
Number of Hedge Fund Holders: 15
1-Year Share Price Decline as of September 4: 33.9%
52 Week Range: $5.56 – $11.20
Mercer International Inc. (NASDAQ:MERC) is a Canadian company that deals in market pulp and solid wood products. The company provides investors with a relatively secure option to navigate the cyclical nature of the pulp market. Like all commodity and material stocks, pricing is driven by the balance between supply and demand. In the second quarter of 2024, pulp prices improved across all major markets due to rising demand and supply disruptions. As these disruptions subside and the market enters a period of typically lower seasonal demand, the company anticipates a slight decline in pulp prices during the third quarter of 2024. In the past year, the stock has declined by 33%.
In Q2 2024, Mercer International Inc. (NASDAQ:MERC) reported revenue of $499.3 million, which fell by 5.7% from the same period last year. The strong pulp market during the quarter led to an increase in operating cash flow. This boost in overall liquidity enabled the company to reduce its borrowings by roughly $45 million on its revolving credit facilities during the quarter.
Mercer International Inc. (NASDAQ:MERC) started paying dividends in 2015 and has never missed a dividend since then. In addition, the company returned $156 million to shareholders through dividends and share buybacks between 2018 to 2023. Its quarterly dividend comes in at $0.075 per share and has a dividend yield of 5.36%, as of September 4. It is among the best 52-week low stocks that pay dividends.
The number of hedge funds tracked by Insider Monkey owning stakes in Mercer International Inc. (NASDAQ:MERC) grew to 15 in Q2 2024, from 11 in the previous quarter. These stakes have a consolidated value of nearly $30 million.
10. Movado Group, Inc. (NYSE:MOV)
Number of Hedge Fund Holders: 16
1-Year Share Price Decline as of September 4: 18.40%
52 Week Range: $22.41 – $31.44
Movado Group, Inc. (NYSE:MOV) is an American designer, manufacturer, and distributor of watches. The company is mainly known for its luxury and fashion watch brands. Movado Group faced a challenging environment last year as inflation in both Europe and the United States curbed discretionary spending. As the year went on, business conditions worsened, which hurt the company’s overall performance in fiscal year 2023. Since the start of 2024, the stock has been down by over 25.5% and its 12-month returns came in at -18.40%.
That being said, the overall economic environment wasn’t entirely detrimental for Movado Group, Inc. (NYSE:MOV), which managed to navigate through the challenges fairly effectively. The company’s results for the first quarter of 2024 were somewhat encouraging. They met expectations as the quarter saw positive progress, driven by successful new product innovations, notably the Movado Bold Quest, and robust double-digit growth at Movado.com, which was boosted by a spring television campaign. As planned, Movado Group, Inc. (NYSE:MOV) will increase its marketing investments in the second quarter to support strategic growth opportunities, including an anticipated new Movado campaign set to launch in the fall.
Movado Group, Inc. (NYSE:MOV)’s balance sheet also remained strong as it ended the quarter with $225.3 million available in cash and cash equivalents. Moreover, the company has no debt, which makes it a solid investment option for income investors. During its last fiscal year, it returned $53.1 million to shareholders in dividends, which also included a special cash dividend of $1.00 per share.
One of the best 52-week low stocks, Movado Group, Inc. (NYSE:MOV) has consistently paid dividends to shareholders since 1996, with the exception of 2020, when it briefly suspended payouts due to the pandemic. Currently, it offers a quarterly dividend of $0.35 per share for a dividend yield of 6.20%, as of September 4.
As of the close of Q2 2024, 16 hedge funds in Insider Monkey’s database owned stakes in Movado Group, Inc. (NYSE:MOV), down from 20 in the preceding quarter. These stakes have a collective value of over $57.8 million. With over 1.4 million shares, Royce & Associates was the company’s largest stakeholder in Q2.
9. Guess?, Inc. (NYSE:GES)
Number of Hedge Fund Holders: 19
1-Year Share Price Decline as of September 4: 17.6%
52 Week Range: $19.46 – $33.50
A global fashion retailer, Guess?, Inc. (NYSE:GES) ranks ninth on our list of the best 52-week low stocks that pay dividends. Though the stock has fallen by nearly 18% in the past year, it has done comparatively better than its peers in the challenging macro environment. In fiscal Q2 2025, the company reported revenue of $732.5 million, which saw a 10.2% growth from the same period last year. The results were in line with the company’s expectations and beat analysts’ consensus by $2.62 million. This performance was driven by the acquisition of rag & bone and strong wholesale results in its Europe and Americas operations.
All segments of Guess?, Inc. (NYSE:GES), except for Asia, experienced top-line growth. The bottom-line results reflect the company’s decision to substantially increase marketing investments compared to the previous year, aiming to support the international expansion of its brands, including the core Guess brand and the newly added Guess Jeans and rag & bone.
Guess?, Inc. (NYSE:GES)’s cash reserves also make it a reliable investment option for income investors. The company ended the quarter with $218.8 million available in cash and cash equivalents. Moreover, it generated $21.7 million in operating cash flow. For FY25, it expects an operating cash flow of $200 million and a free cash flow of $100 million.
On August 29, Guess?, Inc. (NYSE:GES) declared a quarterly dividend of $0.30 per share, which was in line with its previous dividend. Though the company does not hold any dividend growth streak, it has never missed a dividend in the past 18 consecutive years. The stock’s impressive dividend yield sits at 6.09%, as of September 4.
According to Insider Monkey’s database of Q2 2024, 19 hedge funds owned stakes in Guess?, Inc. (NYSE:GES), growing slightly from 18 in the previous quarter. These stakes are valued at more than $67.7 million in total.
8. John Bean Technologies Corporation (NYSE:JBT)
Number of Hedge Fund Holders: 19
1-Year Share Price Decline as of September 4: 18.2%
52 Week Range: $86.12 – $111.43
John Bean Technologies Corporation (NYSE:JBT) is an Illinois-based food processing machinery and automated vehicle company. On June 24, 2024, the company officially presented a voluntary takeover offer to acquire all outstanding shares of Marel (ICL: Marel). Marel shareholders will have the option to choose between receiving all cash, all JBT common stock, or a combination of both for each Marel share, subject to a proration feature. This feature will lead to an overall consideration consisting of about 65 percent stock and 35 percent cash. Shareholders of Marel will receive a total of €950 million in cash and will retain approximately a 38 percent ownership stake in the merged company. The merger was not well-received by investors when it was first announced earlier this year, leading to a significant decline in the company’s shares following the announcement. Since the start of 2024, the stock has fallen by nearly 8%. Conestoga Capital Advisors also highlighted this in its Q4 2023 investor letter. Here is what the firm wrote:
“John Bean Technologies Corporation (NYSE:JBT): JBT is a leading global food processing and air transportation solutions provider, recognized for its technology and service leadership. The stock underperformed the market late in the quarter after announcing a nonbinding proposal to acquire all the shares of publicly traded Icelandic food processing company Marel for $2.6 billion. While the initial offer was subsequently rejected by the Marel Board of Directors, a second offer was proposed and is currently under review.”
John Bean Technologies Corporation (NYSE:JBT) reported mixed earnings in the second quarter of 2024 due to a slow recovery in equipment demand from North American poultry customers. The company’s revenue for the quarter came in at $402.3 million, down 6% from the same period last year. The overall results were affected by a revenue shortfall, partly due to the performance of book and ship orders, as well as a temporary delay in progress on ongoing projects and aftermarket parts orders related to a system upgrade.
However, John Bean Technologies Corporation’s (NYSE:JBT) cash flow generation was a positive development for income investors. In the first six months of the year, the company reported an operating cash flow of $32 million and its free cash flow came in at $14 million. During this period, it returned $6.4 million to shareholders through dividends, which makes JBT one of the best 52-week low stocks that pay dividends. The company pays a quarterly dividend of $0.10 per share and has a dividend yield of 0.45%, as of September 4.
Insider Monkey’s database of Q2 2024 indicated that 19 hedge funds held stakes in John Bean Technologies Corporation’s (NYSE:JBT), which remained unchanged from the previous quarter. These stakes have a total value of over $226.4 million. Among these hedge funds, Royce & Associates was the company’s leading stakeholder in Q2.
7. Vishay Intertechnology, Inc. (NYSE:VSH)
Number of Hedge Fund Holders: 19
1-Year Share Price Decline as of September 4: 28.19%
52 Week Range: $18.72 – $25.50
Vishay Intertechnology, Inc. (NYSE:VSH) is an American manufacturing company that specializes in discrete semiconductors and passive electronic components. On September 3, the stock reached its 52-week low of $18.93 per share as it dealt with challenges in the global semiconductor industry, such as supply chain disruptions and fluctuating demand. In the past 12 months, the stock is down by over 28%.
In the second quarter of 2024, Vishay Intertechnology, Inc. (NYSE:VSH) reported revenue of $741.2 million, which showed a 17% decline from the prior year period. As the first half of the year has already passed, it has become clear that the industry’s recovery is proceeding more slowly than initially anticipated. Consequently, Vishay Intertechnology is extending the timeline for the Itzehoe, Germany expansion project beyond 2024, while maintaining its planned capital investment of $2.6 billion from 2023 to 2028. For 2024, the company now plans to allocate between $360 million and $390 million towards capital expenditures.
Despite the challenging outlook, Vishay Intertechnology, Inc. (NYSE:VSH) intends to expand its capacity and improve its margins in the upcoming quarters. This was also highlighted by First Pacific Advisors in its Q2 2024 investor letter. Here is what the firm said about VSH:
“Vishay Intertechnology, Inc. (NYSE:VSH) is a manufacturer of discrete semiconductors and passive components, mostly for the general industrial and auto markets. Although the industry is cyclical, competitive dynamics are stable and VSH benefits from electric vehicles and industrial electrification. Vishay’s products are similar to ball bearings but for a technological rather than a mechanical economy: high value-to-cost, and they go into nearly everything. Shares have followed operating performance that has drifted down from post-Covid highs following the industrial cycle and a slowdown in electric vehicle (EV) production. Management has an ambitious plan to grow capacity, sales, and margins. We are cautiously optimistic and have been incrementally adding to our position.”
Vishay Intertechnology, Inc. (NYSE:VSH) could be grabbing investors’ attention due to this positive outlook. The company’s ongoing dedication to its shareholders is also a key factor contributing to its increasing popularity. In the first six months of the year, it returned $52.6 million to shareholders through dividends and share repurchases. The company pays a quarterly dividend of $0.10 per share and has a dividend yield of 2.09%, as of September 4.
At the end of June 2024, 19 hedge funds in Insider Monkey’s database owned stakes in Vishay Intertechnology, Inc. (NYSE:VSH), down slightly from 21 a quarter earlier. These stakes have a total value of more than $293 million. With over 2.6 million shares, Fisher Asset Management was the company’s leading stakeholder in Q2.
6. APA Corporation (NASDAQ:APA)
Number of Hedge Fund Holders: 31
1-Year Share Price Decline as of September 4: 41.2%
52 Week Range: $25.85 – $44.98
An American holding company, APA Corporation (NASDAQ:APA)’s subsidiaries explore for and produce oil and natural gas in the US, Egypt, and the UK. The stock is down by over 27% since the start of 2024 and has fallen by over 41% in the past year. Due to this, on the business front, the company took several steps to expand its energy infrastructure portfolio and drive growth. In the second quarter of 2024, it reported production of 473,000 barrels of oil equivalent (BOE) per day. Adjusted production, excluding Egypt’s noncontrolling interest and tax barrels, was 405,000 BOE per day. Its revenue for the quarter came in at $2.8 billion, up significantly from $1.9 billion in the same period last year.
Although APA Corporation (NASDAQ:APA) has posted strong earnings, analysts have yet to give it the green light, as they still expect the company to encounter business headwinds. Ariel Investments also mentioned in its Q2 2024 investor letter:
“Oil and natural gas explorer, APA Corporation (NASDAQ:APA, also traded lower in the quarter following an earnings miss. Weaker than expected production guidance and an upcoming increase in capital investment weighed on investor sentiment. Additionally, the company’s pending acquisition of Callon Petroleum Company, which stands to enhance the scale of APA’s existing Delaware Basin assets and appears accretive to key financial metrics in late 2024 and beyond, is still being digested by investors. Nonetheless, APA continues to deliver strong well performance in the Permian Basin and express confidence in its Suriname development, as it continues to work with TotalEnergies to complete a plan for the oil hub. Management remains focused on free cash flow generation and returning capital to shareholders.”
For dividend investors, APA Corporation (NASDAQ:APA)’s cash position is solid enough to meet their expectations. In the most recent quarter, the company reported an operating cash flow of $877 million. It ended the quarter with $160 million available in cash and cash equivalents, up from $87 million six months ago. This strong cash generation also allowed the company to return $135 million to shareholders through dividends and share repurchases during the quarter. It currently offers a quarterly dividend of $0.35 per share and has a dividend yield of 3.83%, as of September 4.
At the end of the June quarter of 2024, 31 hedge funds owned stakes in APA Corporation (NASDAQ:APA), as per Insider Monkey’s database. These stakes have a collective value of over $294.5 million. Among these hedge funds, Harris Associates was the company’s largest stakeholder in Q2.
5. Walgreens Boots Alliance, Inc. (NASDAQ:WBA)
Number of Hedge Fund Holders: 35
1-Year Share Price Decline as of September 4: 60.5%
52 Week Range: $8.56 – $27.05
Walgreens Boots Alliance, Inc. (NASDAQ:WBA) ranks fifth on our list of the best 52-week low stocks that pay dividends. The Illinois-based retail company has struggled since the beginning of the year. It suffered a significant blow when it reduced its dividend by half, after nearly five decades of increases. Additionally, the company has faced difficulties due to competition from online retailers and pressure from pharmacy benefit managers (PBMs). The stock has declined by nearly 68% in value since the start of 2024.
Despite recent challenges, Walgreens Boots Alliance, Inc. (NASDAQ:WBA) may still be a solid dividend investment. In fiscal Q3 2024, it generated $605 million in operating cash flow and reported $334 million in free cash flow. Over the first nine months of the year, the company paid more than $1 billion in dividends to shareholders. Additionally, its cost-saving measures provide a somewhat optimistic outlook for the company’s future. This was also highlighted by Ariel Investments in its Q2 2024 investor letter. Here is what the firm said:
“Alternatively, shares of retail drugstore operator, Walgreens Boots Alliance, Inc. (NASDAQ:WBA), underperformed following an earnings miss and significant reduction to full year guidance, largely due to continued weakness in its U.S. retail business. In response, management announced a multi-year plan for the U.S. business to reduce the retail footprint, invest in the customer experience, align the retail and healthcare businesses for enhanced go-to-market capabilities and simplify the healthcare portfolio. Meanwhile, the company continues to execute on its cost savings initiatives to optimize profitability and is using excess capital to prioritize the sustainability of its operations and balance sheet. Over the medium-term, we expect a re-rating in shares as WBA’s new CEO rebuilds the leadership team and earns credibility by executing on previously articulated strategic imperatives as well as margin.”
Walgreens Boots Alliance, Inc. (NASDAQ:WBA) offers a quarterly dividend of $0.25 per share and has a dividend yield of 11.66%, as of September 4.
Of the 912 hedge funds tracked by Insider Monkey at the end of Q2 2024, 35 funds owned stakes in Walgreens Boots Alliance, Inc. (NASDAQ:WBA), down from 41 in the previous quarter. These stakes have a consolidated value of roughly $427 million. With over 5.6 million shares, 8 Knots Management was the company’s leading stakeholder in Q2.
4. Atkore Inc. (NYSE:ATKR)
Number of Hedge Fund Holders: 37
1-Year Share Price Decline as of September 4: 43.2%
52 Week Range: $85.59 – $194.98
Atkore Inc. (NYSE:ATKR) is an American company that specializes in manufacturing and distributing a wide range of products used in the construction and maintenance of electrical, mechanical, and safety systems. In 2024 so far, the stock has declined by over 47% as the company is facing pressures from broader economic conditions. Analysts predict that the company’s sales will face difficulties this year because the prices of commodities like steel and PVC are expected to decrease due to market corrections. In fiscal Q3 2024, the company reported revenue of $822.3 million, down 10.5% from the same period last year.
For Atkore Inc. (NYSE:ATKR), the third quarter presented more difficulties than initially expected, primarily due to a modest rise in demand from the summer construction season and a generally weak pricing environment across the majority of the Electrical business. These trends are anticipated to persist into the fourth quarter and the following year, prompting an update to the company’s expectations and outlooks.
Despite these hurdles, Atkore Inc. (NYSE:ATKR) remains confident in its personnel, strategy, and processes—core elements of its business model that help maintain resilience and a forward-focused approach. Moreover, during the third quarter, the company repurchased $125 million in shares as part of its capital deployment strategy while continuing to invest in organic growth initiatives. In the first nine months of the year, the company generated $350 million in operating cash flow. It started paying dividends this year and currently offers a quarterly dividend of $0.32 per share. The stock’s dividend yield on September 4 came in at 1.49%.
Atkore Inc. (NYSE:ATKR) was included in 37 hedge fund portfolios at the end of Q2 2024, compared with 45 in the previous quarter, according to Insider Monkey’s database. The stakes held by these funds have a total value of over $402 million.
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.
2. Halliburton Company (NYSE:HAL)
Number of Hedge Fund Holders: 41
1-Year Share Price Decline as of September 4: 27%
52 Week Range: $29.15 – $43.85
Halliburton Company (NYSE:HAL) is an American multinational company that offers products and services related to the energy industry. The company manages all aspects of the oil industry, from exploration and drilling to enhancing oil well production capacity. Cyberattacks have significantly troubled the energy sector, and Halliburton is no different. In August, the company revealed that it had experienced a cyberattack. Halliburton stated that it is currently assessing the details and extent of the information that was compromised, but it also noted that the incident is unlikely to have a significant impact. The stock has fallen by over 19% since the start of 2024.
Should the issue be resolved, Halliburton Company (NYSE:HAL) still has potential for growth, as indicated by its recent quarterly earnings. In the second quarter of 2024, the company’s returns and cash flow were robust. Internationally, Halliburton is experiencing strong demand for its services, high activity levels, and tight equipment availability across all major basins. In North America, the company’s strategy to optimize value is yielding shareholder benefits, and it is anticipated that strong returns will persist throughout this cycle. It generated $5.8 billion in revenues, up modestly by 0.6% from the same period last year.
Carillon Tower Advisers emphasized the positive aspects of Halliburton Company (NYSE:HAL) in its Q4 2023 investor letter. Here is what the firm said:
“Halliburton Company (NYSE:HAL) provides equipment and services to the global energy industry. The company’s shares underperformed during the quarter, largely due to downward pressure on crude oil and natural gas prices. Despite this recent move, ongoing discipline among North American shale producers could continue supporting relatively healthy activity growth at current commodity price levels, which should provide stability to service providers such as Haliburton. The company is also poised to benefit from the ongoing, multi-year international and offshore upstream investment cycle that is less dependent on short-term swings in commodity prices.”
Halliburton Company (NYSE:HAL) is a strong dividend payer, having raised its payouts for three consecutive years. Moreover, its cash generation suggests that future dividend payments are likely. In the most recent quarter, it generated $1.1 billion in operating cash flow and its free cash flow came in at $800 million. The company offers a quarterly dividend of $0.17 per share for a dividend yield of 2.33%, as of September 4.
The number of hedge funds tracked by Insider Monkey owning stakes in Halliburton Company (NYSE:HAL) grew to 41 in Q2 2024, from 38 in the previous quarter. These stakes have a total value of nearly $508 million.
1. Dollar General Corporation (NYSE:DG)
Number of Hedge Fund Holders: 42
1-Year Share Price Decline as of September 4: 34.1%
52 Week Range: $77.96 – $168.07
Dollar General Corporation (NYSE:DG) is a Tennessee-based discount store company that operates a chain of discount variety stores. The shares dropped by almost a third in value after the discount retailer provided disappointing guidance with its fiscal Q2 results on August 29. This decline pushed the stock to its lowest point in over five years. However, the new management team is implementing strategic changes to improve execution and stabilize operations. The shift to managing fresh goods in-house is starting to normalize, and the addition of more company-owned distribution centers is anticipated to enhance supply chain efficiency.
In the second quarter of 2024, Dollar General Corporation (NYSE:DG) reported revenue of $10.2 billion, which saw a 4.23% growth from the same period last year. The company is also making progress with its Back to Basics strategy, with the aim of achieving sustainable growth and long-term value for shareholders. In the first six months of the year, the company generated $1.7 billion in operating cash flow. This strong cash flow indicates the company’s ability to support and potentially increase dividend payments.
Dollar General Corporation (NYSE:DG) has been growing its dividends consistently for the past five years. The company’s quarterly dividend comes in at $0.59 per share and has a dividend yield of 2.94%, as of September 4.
Insider Monkey’s database of Q2 2024 showed that 42 hedge funds owned stakes in Dollar General Corporation (NYSE:DG), compared with 49 in the previous quarter. Their collective stake value is over $1.5 billion.
Overall, Dollar General Corporation (NYSE:DG) ranks first on our list. While we acknowledge the potential for DG 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.
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Disclosure: None. This article is originally published at Insider Monkey.
