12 Best Dividend Penny Stocks to Buy According to Hedge Funds

4. Ambev S.A. (NYSE:ABEV)

Stock Price: $1.92

Number of hedge fund holders: 19

Brazilian beverage company, Ambev S.A. (NYSE:ABEV) is one of the largest brewers globally. The company’s diverse product portfolio includes popular beer brands such as Antarctica, Bogotá Beer Company, Brahma, Bohemia, and Stella Artois. It holds a dominant position in the beverage industry, controlling approximately 69% of the Brazilian beer market, and also a significant presence across Latin America and Canada.

More recently, Ambev S.A. (NYSE:ABEV) has been striving to achieve an optimized capital structure indicating intentions to strengthen financial health. In January 2025, the company actively repurchased common shares through Santander Corretora. The company also has reelected its Board of Executive Officers in a bid to streamline strategy and maintain continuity in the company’s management.

The beverage industry has been driven by both consumer preferences and dynamic economic conditions. Despite a slight dip in sales, Ambev S.A. (NYSE:ABEV) has managed to deliver a net profit increase in Q3 2024, favored by lower costs and favorable foreign exchange rates. The company has successfully demonstrated a stable market presence and sustained investor interest.

From an investment perspective, Ambev S.A. (NYSE:ABEV), presents a compelling opportunity as a penny stock. It has received continuous interest from the investment community, with 8.13% of the company stocks being held by institutional investors and hedge fund owners. With recent dividend payouts at $0.105 for 2024, the company offers a dividend yield of 5.8%. Trading at record-low valuation multiples, it maintains a significant net cash position and high capital returns, making it an attractive option for dividend-focused investors.

Overall, a strategic outlook with leadership restructuring and share repurchases sets up Ambev S.A. (NYSE:ABEV) for potential growth and favorable shareholder value. It prepares Ambev to adapt to market trends and consumer preferences effectively. Investors seeking dividend income may find Ambev’s consistent payouts and strong market positioning particularly appealing, which makes it one of the best penny stocks.