In this article, we will take a look at some of the best dividend stocks under $30.
Dividend stocks have remained a focal point for investors, especially amid market volatility and the growing need for steady cash flow. Over time, many investors have turned to dividends as a financial cushion for uncertain periods. According to a recent report by J.P. Morgan Wealth Management, dividend stocks are typically priced lower compared to the broader market. Moreover, high-quality dividend stocks tend to be less volatile, experiencing about 80% of the market’s overall fluctuations. This suggests that they offer a more stable investment option while potentially being available at a more attractive valuation.
Also read: 7 Cheap Quarterly Dividend Stocks to Invest in
This trend has drawn the attention of income-focused investors, leading to an increase in dividend income as a key component of personal earnings. According to a report by S&P Dow Jones Indices, dividend income has grown from 2.68% in Q4 1980 to 7.88% in Q2 2024, highlighting its increasing role as a source of income. The report also pointed out that since 1936, dividends have contributed to more than a third of overall equity returns, with capital gains making up the remainder.
The dividend growth approach has proven effective for long-term investors, as these stocks have delivered solid returns over time. When adjusted for inflation, dividend growth has outpaced rising prices, reinforcing their appeal. A report by WisdomTree noted that from 1957 to 2023, dividends increased at an average annual rate of 5.7%, exceeding inflation by more than 2%. The report also highlighted that dividend reductions were rare, occurring in only six of the past 64 years, and only once dropping more than 5%. In contrast, stock prices declined in 18 of those years, with the steepest drop exceeding 40% and an average decline of over 11%. Stock prices also showed more than twice the volatility of dividend cash flows, as short-term fluctuations are often driven by market sentiment, while long-term value is supported by stable cash flows.
Over the years, US companies have consistently raised or maintained their dividend payouts, reflecting investor preferences. According to J.P. Morgan’s Outlook 2025 report, US profit margins remain strong, hitting all-time highs. In this decade, companies in the broader market have returned nearly 75% of their annual earnings to shareholders through dividends and share buybacks, compared to just 50% in the 2000s. While concerns about the concentration of the index in major tech firms persist, the report forecasts positive earnings growth across every sector in the broader market for 2025, a trend not seen since 2018.
Tech stocks, traditionally associated with growth, are increasingly becoming dividend payers in response to investor demand. Just a few years ago, the idea of major tech companies offering dividends seemed unlikely. However, the pool of potential dividend stocks is expanding, attracting significant capital that has been sitting in money market instruments to hedge against interest rate risks. Here are some remarks from Dividend Research Analyst Juan Pablo Albornoz told S&P Global Market Intelligence:
“Providing a dividend is a way for these profitable tech companies to prove to the market and their shareholder base that they can provide sustained regular shareholder return on a regular and predictable basis.”
This approach benefits investors who can now combine investments in both growth and income-generating stocks. Given this, we will now take a look at some of the best dividend stocks under $30.
Our Methodology:
For this list, we used a Finviz stock screener to find dividend stocks with share prices below $30 as of the close of January 30. From the initial list, we selected 12 companies with dividend yields above 4% and a history of regular dividend payments, indicating sustainable dividends. The stocks are ranked according to their share prices. We also considered hedge fund sentiment around each stock using Insider Monkey’s data for Q3 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. Kinder Morgan, Inc. (NYSE:KMI)
Share Price as of the Close of January 30: $28.10
Kinder Morgan, Inc. (NYSE:KMI) is a North American energy infrastructure company that owns and operates oil and gas pipelines and terminals. The company is experiencing growth driven by rising demand, which has led to better utilization of its existing pipelines and stronger contract renewal rates. The company is also seeing gains from high-return expansion projects and last year’s $1.8 billion acquisition of STX Midstream.
Kinder Morgan, Inc. (NYSE:KMI) is confident in its performance, expecting a 9% rise in its adjusted earnings per share this year, supported by reduced hurdles from asset sales and major contract renewals, along with the benefits of recent expansion initiatives, including the late-year acquisition of STX Midstream. In addition, its long-term growth outlook has notably strengthened. The company has recently secured several large natural gas pipeline projects, set to begin operations in 2028, while a series of smaller projects slated for commercial service in the near term has further reinforced and extended its growth trajectory. In the past 12 months, KMI has delivered a 64.3% return to shareholders, significantly outperforming the broader market.
Kinder Morgan, Inc. (NYSE:KMI) also has a strong cash position that helps the company to comfortably fund its dividends. In the most recent quarter, the company generated $1.5 billion in operating cash flow and $0.7 billion in free cash flow. On January 23, it declared a quarterly dividend of $0.2875 per share, which was in line with its previous dividend. It is one of the best dividend stocks on our list as the company has been growing its dividends for the past seven years. The stock has a dividend yield of 4.14%, as of January 30.
At the end of Q3 2024, 42 hedge funds tracked by Insider Monkey held stakes in Kinder Morgan, Inc. (NYSE:KMI), up from 41 in the previous quarter. The consolidated value of these stakes is over $1.3 billion.
11. Pfizer Inc. (NYSE:PFE)
Share Price as of the Close of January 30: $26.91
Pfizer Inc. (NYSE:PFE) is a New York-based pharmaceutical company that mainly manufactures, markets, and sells related products worldwide. The company gained substantial investor interest in 2020 by becoming the first to introduce a COVID-19 vaccine in the US, ahead of Moderna. In addition to its vaccine, the company offers a broad range of treatments for autoimmune diseases, cancer, migraines, and other conditions. Analysts have indicated that its growth potential may be undervalued. Pfizer has made significant investments in research and development, along with strategic acquisitions, strengthening its portfolio with key products such as the RSV vaccine Abrysvo, the migraine treatment Nurtec ODT, and cancer therapies Adcetris and Padcev.
Using profits generated during the pandemic, Pfizer Inc. (NYSE:PFE) acquired Seagen for $43 billion in late 2023 to bolster its oncology pipeline. It is expected to continue pursuing acquisitions of promising pharmaceutical companies to further expand its portfolio. This strategy appears to be yielding positive results, as management forecasts earnings growth of 10% to 18% for 2025. Analysts also project the company’s earnings to increase at an annual rate of around 14% over the next three to five years.
In December 2024, Pfizer Inc. (NYSE:PFE) declared a 2.4% hike in its quarterly dividend to $0.43 per share. Through this increase, the company stretched its dividend growth streak to 15 years, which makes it one of the best dividend stocks on our list. As of January 30, the stock has a dividend yield of 6.42%.
As of Q3 2024, 80 hedge funds tracked by Insider Monkey held stakes in Pfizer Inc. (NYSE:PFE), down from 84 in the previous quarter. These stakes are collectively valued at over $3 billion. With nearly 17 million shares, Two Sigma Advisors was the company’s leading stakeholder in Q3.
10. Energy Transfer LP (NYSE:ET)
Share Price as of the Close of January 30: $21.08
Energy Transfer LP (NYSE:ET) is an American energy company, based in Texas. The company is engaged in the pipeline transportation and storage for natural gas, crude oil, and other refined products. It has delivered solid operational and financial performance this year, achieving multiple volume records in the most recent quarter, driven by organic growth and strategic acquisitions. In November, the company completed a $7.1 billion acquisition of Crestwood Equity Partners, following its $3.1 billion purchase of WTG Midstream in July. Additionally, it successfully executed two processing optimization initiatives, including the Red Lake III processing plant and a new pipeline connection between Midland and Cushing.
With one of the most robust growth pipelines in the midstream sector, Energy Transfer LP (NYSE:ET) plans to invest between $2.5 billion and $3.5 billion annually in growth capital expenditures (capex), capitalizing on emerging opportunities. In its latest earnings call, management emphasized strong demand from power generation companies and data center operators for natural gas pipeline projects, fueled by the increasing energy needs associated with AI infrastructure expansion. The stock has surged by over 44% in the past 12 months.
Energy Transfer LP (NYSE:ET) reported a strong cash position in its latest quarter, with distributable cash flow (DCF)—which represents cash generated before growth capital expenditures—rising by $4 million to $1.99 billion. The company experienced high throughput across its systems, setting multiple volume records during the period. In October 2024, it announced a 0.8% increase in its quarterly dividend to $0.3225 per share, marking its 12th consecutive quarterly dividend hike, which makes it one of the best dividend stocks on our list. The stock offers a dividend yield of 6.30%, as of January 30.
According to Insider Monkey’s database of Q3 2024, 29 hedge funds held stakes in Energy Transfer LP (NYSE:ET), compared with 32 in the previous quarter. These stakes are collectively valued at over $965.5 million. Among these hedge funds, Abrams Capital Management was the company’s leading stakeholder in Q3.
9. Franklin Resources, Inc. (NYSE:BEN)
Share Price as of the Close of January 30: $20.15
Franklin Resources, Inc. (NYSE:BEN) is an American multinational asset management company that offers a wide range of related products and services to its consumers. In its recently announced fiscal Q1 2025 earnings, the company reported a 34% year-over-year increase in long-term inflows, excluding reinvested distributions, and achieved positive net flows across equity, multi-asset, and alternative investments, amounting to a total of $17 billion for the quarter. Although long-term net outflows stood at $50 billion, when excluding Western Asset Management, the company recorded $18 billion in long-term net inflows, with positive results across all asset classes.
Franklin Resources, Inc. (NYSE:BEN) has declined by over 16.5% in the past 12 months, a development that is not entirely surprising given its history of inconsistent performance. However, the company has undergone significant transformation over the years. Through strategic acquisitions, including last year’s purchase of the options-trading technology firm volScout, this mutual fund leader has strengthened its ability to serve the evolving needs of both individual and institutional investors.
Franklin Resources, Inc. (NYSE:BEN) is one of the strongest dividend payers in the market. In December 2024, the company declared a 3% hike in its quarterly dividend to $0.32 per share. This marked the company’s 49th consecutive year of dividend growth. With a dividend yield of 5.79%, as of January 30, BEN is one of the best dividend stocks to buy under $30.
Insider Monkey’s database of Q3 2024 indicated that 26 hedge funds owned stakes in Franklin Resources, Inc. (NYSE:BEN), compared with 27 in the previous quarter. These stakes have a total value of over $272.6 million. With over 3.5 million shares, AQR Capital Management was the company’s leading stakeholder in Q3.
8. Midland States Bancorp, Inc. (NASDAQ:MSBI)
Share Price as of the Close of January 30: $19.81
Midland States Bancorp, Inc. (NASDAQ:MSBI) ranks eighth on our list of the best dividend stocks under $30. The Illinois-based bank holding company offers a wide range of related products and services to its consumers. In the third quarter of 2024, the company performed well, achieving higher profitability while advancing its balance sheet management strategies. This progress led to further improvements across all capital ratios, an increase in tangible book value per share, and enhanced liquidity, accompanied by a reduction in the loan-to-deposit ratio.
Midland States Bancorp, Inc. (NASDAQ:MSBI)’s revenue for the quarter came in at $74.3 million, which fell by 3.25% from the same period last year but beat analysts’ estimates by $1.22 million. The company ended the quarter with over $75.5 million available in cash and cash equivalents. The company is experiencing positive outcomes from its recent investments, including expanded business development efforts in the St. Louis market, where loan balances grew at an annualized rate of 12% in the third quarter. In addition, Wealth Management revenues have increased, supported by growth in assets under administration, partly attributed to the addition of new wealth advisors in recent quarters.
Midland States Bancorp, Inc. (NASDAQ:MSBI) is a strong dividend payer, having raised its payouts for 24 consecutive years. The company currently pays a quarterly dividend of $0.31 per share and has a dividend yield of 6.37%, as of January 30.
The number of hedge funds tracked by Insider Monkey owning stakes in Midland States Bancorp, Inc. (NASDAQ:MSBI) grew to 11 in Q3 2024, from 7 in the previous quarter. These stakes have a total value of over $14.3 million.
7. Flowers Foods, Inc. (NYSE:FLO)
Share Price as of the Close of January 30: $19.73
Flowers Foods, Inc. (NYSE:FLO) is a Georgia-based company that specializes in the production and marketing of bakery products. The company’s strong cash position makes it a reliable dividend payer. In the first nine months of 2024, it generated $282.4 million in operating cash flow. During this period, the company also returned $152.5 million to shareholders through dividends. In addition, it has raised its payouts for 22 consecutive years, which makes it one of the best dividend stocks on our list. The stock’s dividend yield on January 30 came in at 4.9%.
Flowers Foods, Inc. (NYSE:FLO) maintains a strong foothold in the Southeast and Southwest, where it commands over 30% market share and owns popular brands like Wonder, Nature’s Own, and Tasty Cake. The company’s strategy prioritizes steady revenue growth and margin expansion, with a goal of achieving 4-6% annual EBITDA growth and 1-2% sales growth. By emphasizing higher-margin product categories, such as organic and gluten-free offerings, the company enhances its earnings potential.
As per Insider Monkey’s database of Q3 2024, 25 hedge funds owned stakes in Flowers Foods, Inc. (NYSE:FLO), compared with 26 in the previous quarter. The overall value of these stakes is more than $313.3 million. Among these hedge funds, Renaissance Technologies was the company’s leading stakeholder in Q3.
6. KeyCorp (NYSE:KEY)
Share Price as of the Close of January 30: $18.03
KeyCorp (NYSE:KEY) is an American retail banking company that offers a wide range of retail and commercial banking services to its consumers. In the fourth quarter of 2024, the company’s earnings per share and revenue were affected by the previously announced completion of the company’s securities portfolio repositioning. On an adjusted basis, revenue increased by 16% year-over-year and 11% sequentially. Net interest income rose 10% compared to the previous quarter, while adjusted fees saw a significant increase over comparable periods. The company achieved positive operating leverage on a year-over-year basis for the second consecutive quarter. In addition, net charge-offs declined by 26% quarter-over-quarter, while criticized loans were reduced by 7%.
KeyCorp (NYSE:KEY) has been shifting toward a more balanced growth approach in consumer banking, supported by the expansion of its digital banking capabilities. The company secured a strategic investment from Scotiabank, highlighting a notable opportunity for growth and financial stability. This capital infusion enhances the company’s financial flexibility, allowing it to advance key strategic initiatives, particularly the repositioning of its securities portfolio.
On January 16, KeyCorp (NYSE:KEY) declared a quarterly dividend of $0.205 per share, which was in line with its previous dividend. Overall, the company has never missed a dividend since 1985, which makes it one of the best dividend stocks on our list. The stock supports a dividend yield of 4.56%, as of January 30.
The number of hedge funds tracked by Insider Monkey owning stakes in KeyCorp (NYSE:KEY) grew to 41 in Q3 2024, from 38 in the previous quarter. The consolidated value of these stakes is over $757.5 million.
5. Arbor Realty Trust, Inc. (NYSE:ABR)
Share Price as of the Close of January 30: $13.43
Arbor Realty Trust, Inc. (NYSE:ABR) is an American real estate investment trust company that invests in a diversified portfolio of finance assets in the multifamily and commercial real estate markets. In 2024, the company faced difficulties as federal prosecutors and the FBI initiated an investigation into its commercial mortgage REIT. The probe focused on its lending practices and the accuracy of its disclosures regarding loan portfolio performance. In response, the company reaffirmed its commitment to full cooperation with authorities and expressed confidence in its adherence to regulatory standards.
Arbor Realty Trust, Inc. (NYSE:ABR) effectively reassured investors and regained their confidence through its statement. With an industry presence dating back to 2003, the company has a demonstrated ability to navigate major economic disruptions, including the Great Financial Crisis, the 2020 pandemic, and the inflation-driven Federal Reserve rate hikes of 2023. The company has consistently paid dividends to shareholders since 2012, which makes it one of the best dividend stocks on our list.
Arbor Realty Trust, Inc. (NYSE:ABR)’s cash position also makes it a strong dividend payer. The company ended the quarter with approximately $600 million in cash and liquidity, supported by a trailing twelve-month operating cash flow of $492 million.
Insider Monkey’s database of Q3 2024 indicated that 16 hedge funds owned stakes in Arbor Realty Trust, Inc. (NYSE:ABR), up from 12 in the previous quarter. The total value of these stakes is over $68.2 million. With over 2.4 million shares, Omega Advisors was the company’s leading stakeholder in Q3.
4. Dynex Capital, Inc. (NYSE:DX)
Share Price as of the Close of January 30: $13.15
Dynex Capital, Inc. (NYSE:DX) is an American real estate investment trust company that mainly invests in mortgage-backed securities and other various real estate assets. For the fourth quarter of 2024, the company reported a total economic return of $0.13 per common share, representing 1.0% of its beginning book value, while the full-year return stood at $0.99 per share, or 7.4% of the starting book value. During the quarter, it raised $64.4 million in equity capital through at-the-market (ATM) common stock issuances, bringing the total capital raised for the year, net of issuance costs, to $332.0 million.
Dynex Capital, Inc. (NYSE:DX) has surged by nearly 5% in the past 12 months. The company is still in the process of recovering from the challenges experienced between 2022 and 2023. These difficulties stemmed from high short-term interest rates, which led to increased interest expenses and pressured the trust’s book value. However, this trend is expected to shift, as mortgage REITs are likely to become more attractive for passive income investors in a lower interest rate environment.
In addition, Dynex Capital, Inc. (NYSE:DX) has a strong cash position. The company ended the quarter with over $377 million available in cash and cash equivalents. It pays a monthly dividend of $0.15 per share and has an attractive dividend yield of 13.6%, as of January 30. It is one of the best dividend stocks on our list as the company has paid regular dividends to shareholders since 2008.
Dynex Capital, Inc. (NYSE:DX) was included in 14 hedge fund portfolios at the end of Q3 2024, up from 13 in the previous quarter, as per Insider Monkey’s database. The stakes owned by these funds are worth over $59 million. With over 1.7 million shares, Millennium Management was the company’s leading stakeholder in Q3.
3. The Western Union Company (NYSE:WU)
Share Price as of the Close of January 30: $10.4
The Western Union Company (NYSE:WU) is a Colorado-based multinational financial services company that offers online payment services in over 200 countries and territories. Over the past year, the stock has dropped more than 17%. Once a dominant force in its industry, the company lost its competitive edge with the emergence of PayPal and other fintech rivals offering faster, more affordable, and convenient digital payment solutions. In addition, the growth of blockchain technology and cryptocurrency-based transfer services has posed a significant challenge to traditional money transfer businesses.
Despite these challenges, The Western Union Company (NYSE:WU) has attracted investor interest through its commitment to returning value to shareholders. The company’s board recently authorized a $1 billion stock repurchase program with no set expiration date, noting that the timing and amount of buybacks would depend on factors such as market conditions and stock performance. The company has a track record of actively repurchasing shares, having allocated approximately $308 million for buybacks in 2023, with annual repurchases ranging from $240 million to $553 million between 2018 and 2023.
The Western Union Company (NYSE:WU) is one of the best dividend stocks on our list as the company has been making regular dividends to shareholders since 2006. The company’s quarterly dividend comes in at $0.235 per share and has a dividend yield of 9.08%, as of January 30.
At the end of Q3 2024, 27 hedge funds tracked by Insider Monkey held stakes in The Western Union Company (NYSE:WU), compared with 32 in the previous quarter. The consolidated value of these stakes is nearly $400 million.
2. Barings BDC Inc. (NYSE:BBDC)
Share Price as of the Close of January 30: $10.07
Barings BDC Inc. (NYSE:BBDC) is a North Carolina-based business development company that specializes in debt investments in middle-market companies. The company remains focused on growth strategies designed to enhance portfolio value and boost net investment income. In the third quarter of 2024, the company made 11 new investments totaling $88.4 million, along with an additional $36.6 million invested in its existing portfolio companies. The company reported a total investment income of $70.9 million for the quarter, with net investment income reaching $30.2 million.
Over the years, Barings BDC Inc. (NYSE:BBDC) has positioned itself as a top business development firm by seizing growth opportunities and generating substantial value for shareholders. Over the past year, its stock has provided a nearly 10% return, which is especially impressive considering its low-risk profile. Unlike high-beta stocks, which tend to carry more risk for the potential of higher returns, Barings BDC offers a more stable investment. Its consistent markets, appealing dividends, and increasing net asset value all contribute to its lower risk profile.
Barings BDC Inc. (NYSE:BBDC), one of the best dividend stocks on our list, has been paying regular dividends to shareholders since 2007. Its quarterly dividend currently comes in at $0.26 per share and has a dividend yield of 10.28%, as of January 30.
The number of hedge funds tracked by Insider Monkey owning stakes in Barings BDC, Inc. (NYSE:BBDC) grew to 11 in Q3 2024, from 9 in the previous quarter. These stakes have a total value of over $21.7 million. With over 1 million shares, Two Sigma Advisors was the company’s leading stakeholder in Q3.
1. Amcor plc (NYSE:AMCR)
Share Price as of the Close of January 30: $9.75
Amcor plc (NYSE:AMCR) is an Australian packaging company that offers a wide range of related products for different industries. The company has revealed plans to acquire its US competitor, Berry Global, in an all-stock deal valued at $8.43 billion. This merger will create a major player in the consumer and healthcare packaging industry, with total revenues reaching $24 billion. The move comes amid a wave of industry consolidation, as demand for packaging materials has declined after a surge during the pandemic’s e-commerce boom. This acquisition marks Amcor’s largest deal to date, surpassing its 2019 purchase of US-based Bemis for $5.25 billion in an all-stock transaction, which required the company to divest three manufacturing facilities to secure approval from the US Justice Department.
In fiscal Q1 2025, Amcor plc (NYSE:AMCR) reported revenue of $3.35 billion, reflecting a slight decline of 2.6% from the same period the previous year. However, the company entered fiscal 2025 on a positive note, fueled by improved volume growth and stronger customer demand. Adjusted earnings per share increased by 5%, with contributions from both the Flexibles and Rigid Packaging segments. This growth was driven by higher volumes and a continued focus on cost control and maintaining strong margins.
In November 2024, Amcor plc (NYSE:AMCR) declared a 2% hike in its quarterly dividend to $0.1275 per share. This marked the company’s 41st consecutive year of dividend growth, which makes it one of the best dividend stocks on our list. The stock supports a dividend yield of 5.25%, as of January 30.
At the end of Q3 2024, 18 hedge funds tracked by Insider Monkey held stakes in Amcor plc (NYSE:AMCR), compared with 21 in the previous quarter. These stakes have a consolidated value of $185.3 million.
Overall Amcor plc (NYSE:AMCR) ranks first on our list of the best dividend stocks under $30. While we acknowledge the potential for AMCR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AMCR but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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