12 Best Dividend Stocks Under $25

8. Atlantica Sustainable Infrastructure plc (NASDAQ:AY)

Number of Hedge Fund Holders: 16

Share Price as of June 21: $21.9

Atlantica Sustainable Infrastructure plc (NASDAQ:AY) is a UK-based company that specializes in acquiring renewable energy assets. Private equity firm Energy Capital Partners announced that it will acquire the company for $2.56 billion in cash. This transaction will provide Atlantica’s largest shareholder with funds to reduce its debt. Algonquin Power & Utilities, which owns over 42% of Atlantica shares, announced its support for the acquisition. This deal values Algonquin’s stake at around $1.08 billion. Algonquin plans to use the proceeds to reduce its debt and strengthen its balance sheet, aiding its strategic shift toward becoming a pure-play regulated utility. Since the start of 2024, the stock is up by over 3%.

Atlantica Sustainable Infrastructure plc (NASDAQ:AY) reported growth on multiple fronts in the first quarter of 2024. The company generated roughly $243 million in revenues, up from $242.5 million during the same period last year. Its operating cash flow of $65.6 million also showed a 57.3% YoY growth. The company continued to advance its growth strategy by leveraging its own development capabilities and supplementing them with strategic acquisitions. On March 22, the company completed its acquisition of a 100% equity stake in two operational wind assets in Scotland, UK, with a combined capacity of 32 MW. The investments totaled about $66 million and the assets currently have no project debt. These are Atlantica’s first operational assets in the UK, and the expected returns will be boosted by utilizing its existing net operating loss forward in the UK over the next few years. Since the acquisition, the stock has gained significantly by over 20%.

Atlantica Sustainable Infrastructure plc (NASDAQ:AY), one of the best dividend stocks on our list, currently offers a quarterly dividend of $0.445 per share. The company has been growing its dividends consistently for the past seven years. The stock offers an impressive dividend yield of 8.12%, as of June 21.

At the end of March 2024, 16 hedge funds in Insider Monkey’s database invested in Atlantica Sustainable Infrastructure plc (NASDAQ:AY), compared with 18 a quarter earlier. These stakes have a total value of more than $104.3 million.