12 Best Dividend Stocks Under $25

5. UGI Corporation (NYSE:UGI)

Number of Hedge Fund Holders: 29

Share Price as of June 21: $22.6

UGI Corporation (NYSE:UGI) ranks fifth on our list of the best dividend stocks under $25. The natural gas and electric utility company mainly specializes in delivering safe, reliable, and affordable energy to its consumers. During the strategic review post quarterly earnings, the company evaluated various options for creating value, such as selling, spinning off, or forming a joint venture for AmeriGas, its LPG business. After a thorough discussion, the board concluded that the company should concentrate on restructuring and operational enhancement plans for AmeriGas. This plan involves a strong emphasis on customer retention, increasing free cash flow, effective cost management, and disciplined capital allocation.

The propane market in Europe has been declining due to an oversupply of propane and reduced demand from the heating industry. UGI Corporation (NYSE:UGI) operates an LPG distribution business in 17 European countries through its subsidiaries and affiliates. Due to headwinds in the propane business in Europe, prices have dropped nearly 20% and are lower than they were two years ago, which we think is expected to benefit the company in FY24. The company’s AmeriGas propane revenue came in at $795 million, down slightly from $867 million in the prior-year period.

In fiscal Q2 2024, UGI Corporation (NYSE:UGI) natural gas division posted its highest-ever second-quarter earnings, marking a 32% growth from the same period last year. The company also made significant strides in cost control to boost operational efficiency. These results demonstrate the resilience of its portfolio in delivering long-term value to shareholders. For FY24, the company anticipates meeting its adjusted EPS guidance, projecting earnings between $2.70 and $3.00 per share.

UGI Corporation (NYSE:UGI) is one of the best dividend stocks on our list as the company has never missed a dividend in 140 consecutive years. In addition, the company has been growing its dividends consistently for the past 37 years. It currently offers a quarterly dividend of $0.375 per share and has a dividend yield of 6.50%, as of June 21.

The number of hedge funds tracked by Insider Monkey owning stakes in UGI Corporation (NYSE:UGI) stood at 29 in Q1 2024, down from 33 in the previous quarter. These stakes have a consolidated value of nearly $180 million. Among these hedge funds, First Eagle Investment Management was the company’s leading stakeholder in Q1.