In this article, we will take a look at some of the best dividend stocks under $100.
Dividend stocks hold strong appeal for income generation for two main reasons. First, their regular payouts help investors address immediate liquidity needs. Second, historical trends indicate that dividend-paying stocks can help reduce market volatility and limit losses during downturns. Companies with a track record of dividend growth often provide added stability during bearish markets. For instance, between December 31, 1999, and March 31, 2022, during periods of market decline, the High Yield Dividend Aristocrats index outperformed the Composite 1500 and the High Dividend Index, delivering an average monthly outperformance of 140 and 49 basis points, respectively.
Investing in dividend stocks has always been a tug-of-war between those favoring high yields and those backing dividend growth. Analysts suggest that due to economic volatility since 2020 and ongoing market uncertainties impacting corporate earnings, high-yield companies without strong financial stability and discipline may struggle to maintain their dividend payouts. This could leave them at risk of dividend cuts or suspensions. In contrast, dividend growth strategies have proven effective in both rising and falling interest rate environments. According to a report by ProShares, the Dividend Aristocrats index, which tracks companies with at least 25 years of consistent dividend growth, achieved a 14.26% return during the period of declining interest rates from May 2005 to March 2024, outperforming high-yield stocks, which delivered just over 10%. Similarly, during periods of rising interest rates within the same timeframe, dividend growth stocks returned 10.26%, compared to 9.22% for high-yield stocks.
Also read: 10 Extreme Dividend Stocks to Invest in Now
That said, high-yield stocks aren’t entirely off the table. While analysts warn investors about the financial stability of high-yield companies, these stocks have historically delivered solid returns. The research from The Wellington study analyzed the broader market’s dividend-paying stocks from 1930 to 2019, dividing them into five categories based on their dividend yields. The top 20% of dividend payers outshone the rest, with the moderate dividend group also surpassing the broader market in several periods. However, stocks with lower dividend yields showed less consistent performance compared to the broader index.
Kirsten Cabacungan, an investment strategist at Merrill and Bank of America Private Bank, encouraged investors to focus on both price appreciation and dividend income when evaluating total returns. She highlighted that dividend-paying stocks bring added advantages, as their steady income can help cushion losses during market downturns, offering stability to a portfolio. Moreover, during periods of low interest rates, these stocks often provide higher income compared to options like Treasury bonds, CDs, or corporate bonds. Here are some other comments from the analyst:
“Companies that have consistently increased their dividends tend to be more stable, higher quality businesses, which historically have weathered downturns and are more likely to have the ability to pay dividends consistently.”
Cabacungan advised that investors looking for steady income might benefit from focusing on stocks with above-average dividend yields held over the long term. On the other hand, those prioritizing growth without the need for immediate income should consider stocks with a history of steadily increasing dividends. This strategy aligns with a growth-focused approach, enabling investors to capitalize on companies that consistently enhance their dividends as their profits and cash flows expand. Given this, we will take a look at some of the best high-yield stocks under $100.
Photo by Dan Dennis on Unsplash
Our Methodology:
For this list, we first used a stock screener to identify dividend-paying stocks priced below $100 and offering dividend yields above 4% as of January 24. From that selection, we chose 12 companies with strong dividend histories and ranked them in ascending order of hedge funds’ sentiment toward them, according to Insider Monkey’s database of Q4 2023.
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. Universal Corporation (NYSE:UVV)
Number of Hedge Fund Holders: 14
Dividend Yield as of January 24: 6.39%
Share Price as of January 24: $50.71
Universal Corporation (NYSE:UVV) is a global leaf tobacco supplier that operates in various segments of the tobacco industry, including procuring, processing, packaging, storing, and shipping leaf tobacco.
Universal Corporation (NYSE:UVV) reported strong earnings in its fiscal Q2 2025 report. This performance was driven by strong customer demand in its Tobacco Operations segment and larger, higher-quality crops with better yields from Africa. The segment is anticipated to sustain its solid results through the second half of the fiscal year. Meanwhile, the company has been growing Universal Ingredients’ market presence, attracting interest from both new and existing customers despite challenges from rising food costs. The recently expanded ingredients facility is expected to boost production and significantly contribute to fiscal year 2026 results.
Universal Corporation (NYSE:UVV) posted revenue of nearly $711 million. Looking ahead, the company plans to focus on optimizing its tobacco business, growing the ingredients segment, and identifying opportunities for collaboration between the two areas. In addition, its cash position also remained solid as the company had approximately $80 million available in cash at the end of the quarter.
Universal Corporation (NYSE:UVV) is one of the best dividend stocks on our list as the company has been growing its payouts for 54 consecutive years. The company offers a quarterly dividend of $0.81 per share and has a dividend yield of 6.39%, as of January 24.
At the end of Q3 2024, 14 hedge funds tracked by Insider Monkey held stakes in Universal Corporation (NYSE:UVV), up from 12 in the previous quarter. These stakes have a total value of nearly $72 million. Among these hedge funds, Pzena Investment Management was the company’s leading stakeholder in Q3.
11. Spire Inc. (NYSE:SR)
Number of Hedge Fund Holders: 20
Dividend Yield as of January 24: 4.51%
Share Price as of January 24: $69.65
Spire Inc. (NYSE:SR) is a Missouri-based energy company that operates primarily in the natural gas industry. The company provides natural gas service to residential, commercial, industrial, and wholesale customers across several states in the US. In the FY24 earnings call, the company stated that growth in its gas utilities throughout the year was driven by substantial infrastructure investments and enhanced operational efficiency. In addition, the Gas Marketing and Midstream segments consistently delivered strong performance. The company emphasized its ongoing commitment to executing its strategy, prioritizing capital-driven growth and operational excellence. In the past 12 months, the stock has surged by over 17%.
In the fourth quarter of 2024, Spire Inc. (NYSE:SR) reported revenue of $293.8 million, down 5% from the same period last year. For FY24, the company reported a net income of $250.9 million, or $4.19 per share, up from $217.5 million, or $3.85 per share, in fiscal 2023. It has set a long-term adjusted earnings per share growth target of 5–7%, using the initial fiscal 2024 guidance midpoint of $4.35 per share as a baseline. The company’s 10-year capital investment plan, totaling $7.4 billion through fiscal 2034, is primarily focused on infrastructure improvements and new business development within its Gas Utilities segment, which accounts for 98% of the planned investments. For fiscal 2025, capital expenditures are projected to reach $790 million.
Spire Inc. (NYSE:SR) is a reliable dividend payer as the company holds a strong cash position. It ended the quarter with $4.5 million available in cash and cash equivalent and generated $912.4 million in operating cash flow in fiscal 2024. The company has paid regular dividends to shareholders since 1946. In November 2024, it declared a 4% hike in its quarterly dividend to $0.785 per share. This marked the company’s 22nd consecutive year of dividend growth, which makes SR one of the best dividend stocks on our list. As of January 24, the stock has a dividend yield of 4.51%.
The number of hedge funds tracked by Insider Monkey owning stakes in Spire Inc. (NYSE:SR) grew to 20 in Q3 2024, from 16 in the previous quarter. These stakes have a consolidated value of $73.7 million. Millennium Management was the company’s leading stakeholder in Q3.
10. W. P. Carey Inc. (NYSE:WPC)
Number of Hedge Fund Holders: 23
Dividend Yield as of January 24: 6.37%
Share Price as of January 24: $55.26
W. P. Carey Inc. (NYSE:WPC) is an American real estate investment trust company that specializes in the ownership and management of commercial real estate properties. The company began 2024 on a less-than-ideal note by announcing a dividend reduction, a move that caught many investors off guard. However, it closed the year on a strong footing, reporting record transaction volumes in the final quarter and entering 2025 on a much more optimistic note. The stock has declined by over 13% in the past 12 months.
W. P. Carey Inc. (NYSE:WPC)’s dividend cut was largely a result of the decision to divest its office property holdings, which at the time accounted for 16% of its rental income. This strategic shift left the REIT with little option but to lower its dividend. For many income-focused investors, a dividend reduction often places a company in the “un-investable” category. That said, the company has raised its payouts twice since the dividend cut.
W. P. Carey Inc. (NYSE:WPC)’s balance sheet has gotten stronger over the years. In the most recent quarter, the company had over $818 million available in cash and cash equivalents, up from $633.8 million at the end of 2023. Though the company’s 24-year dividend growth streak was broken with its dividend cut, its payouts remained regular since 1998. It currently pays a quarterly dividend of $0.88 per share and has a dividend yield of 6.37%, as of January 24.
As of the close of Q3 2024, 23 hedge funds in Insider Monkey’s database owned stakes in W. P. Carey Inc. (NYSE:WPC), the same as in the previous quarter. These stakes have a total value of nearly $220 million.
