13 Best Cheap Dividend Stocks To Buy Right Now

2. Citigroup Inc. (NYSE:C)

Number of Hedge Fund Holders: 101

Forward P/E Ratio: 9.67

Citigroup Inc. (NYSE:C) is a multinational investment banking company that offers a diverse range of financial products and services. The company operates through three primary business segments: Global Consumer Banking, Institutional Clients Group, and Treasury and Trade Solutions. By leveraging its extensive customer base and international presence, Citigroup aims to strengthen its competitive position in the market.

Citigroup Inc. (NYSE:C) has declined sharply between February 28 and March 6 following reports of manual errors in bank transfers, highlighting an ongoing regulatory challenge the bank has been working to address in recent years. According to a report by The Financial Times, the bank mistakenly deposited $81 trillion into a client’s account instead of the intended $280, adding to a series of errors the bank has been working to correct as it seeks to rebuild its reputation. In another news, Bloomberg reported that Citigroup’s wealth management division came close to mistakenly transferring $6 billion to a client’s account.

The reports raise concerns as regulators issued a consent order against Citigroup Inc. (NYSE:C) in 2020, along with a $400 million fine, due to the bank’s failure to address persistent internal and risk control issues. This order was partly influenced by the bank’s accidental transfer of $900 million to Revlon creditors that same year. In July 2023, regulators imposed another fine of $136 million on the bank for delays in resolving the issues outlined in the 2020 consent order.

Analysts believe that while these mistakes may have long-term implications, they are still viewed as short-term setbacks in light of the bank’s overall performance. Citigroup Inc. (NYSE:C) is a strong dividend payer, distributing $6.7 billion to shareholders through dividends and stock buybacks in FY24, reinforcing its commitment to delivering shareholder value. With a 34-year track record of uninterrupted dividend payments, it is one of the best dividend stocks to consider. The company pays a quarterly dividend of $0.56 per share and has a dividend yield of 3.17%, as of March 6.