Markets

Insider Trading

Hedge Funds

Retirement

Opinion

13 Best Low-Priced Dividend Stocks To Invest In

In this article, we will take a detailed look at the 13 Best Low-Priced Dividend Stocks To Invest In. For a quick overview of such stocks, read our article 5 Best Low-Priced Dividend Stocks To Invest In.

Stocks rebounded sharply in 2023 despite recession clouds and macro uncertainty. This development did not bode well for dividend investors who were bracing for impact.  After the beginning of a strong bear market in 2022, investors injected a whopping $60 billion in dividend-focused ETFs.  But these ETFs failed to perform in 2023 as a strong rally led by AI boom saw investors flocking to technology stocks.  But does this development make dividend stocks unattractive? Data shows that dividends stocks like The Procter & Gamble Company (NYSE:PG), Colgate-Palmolive Company (NYSE:CL) and PepsiCo, Inc. (NASDAQ:PEP) outperform when markets are going through uncertainty and events have proved that the US economy is still not out of the woods. If we analyze the long-term performance of dividend stocks by overlooking the short-term market cycles, it’s clear that dividend stocks have performed impressively in the past.

From 1960 through 2022, 69% of the total return of the S&P 500 Index came courtesy of dividend investing and compounding, according to a report by Hartford Funds entitled “The Power of Dividends.”

The report also said that from 1930 to 2022, dividend income’s contribution to the total return of the S&P 500 Index on average came in at 41%.

In this backdrop, it would make sense to take a look at some dividend stocks that are trading at low prices with healthy yields.

Photo by Dan Dennis on Unsplash

Methodology

For this article we first used a stock screener to identify dividend stocks with over 3% dividend yield and stock prices less than $15 as of December 15. From the resultant dataset we picked 13 stocks with the highest number of hedge fund investors.

13. Huntington Bancshares Incorporated (NASDAQ:HBAN)

Number of Hedge Fund Investors: 27

Ohio-based Huntington Bancshares Incorporated (NASDAQ:HBAN) ranks 13th in our list of the best low-priced dividend stocks to buy according to hedge funds.

Out of the 910 hedge funds in Insider Monkey’s database, 27 funds had stakes in Huntington Bancshares Incorporated (NASDAQ:HBAN).

During Q3 earnings call, Huntington Bancshares Incorporated (NASDAQ:HBAN) talked about its future expectations:

As we think about Q4, our expectation is to have to see a NIM of between 305 basis points and 310 basis points, which is around 5 basis points or 10 basis points better than I would have thought this time last quarter. And it’s really driven by the benefits we’re seeing coming through from the higher for longer rate scenario, which as we’ve noted, we would expect to be accretive to overall NIM, and that is bearing fruit. Based on the trends we’re seeing in earning assets, I expect the dollars of NII in Q4 will be down around 4% to 5% from Q3 and informing a trough both in NIM ratio and the NIM and net interest income dollars in the fourth quarter then trending higher from there. The NIM outlook for 2024, I expect to be flat to rising, as I noted.

And I think the things you’re going to see are continued really solid progress on the fixed asset repricing, major asset categories on the fixed side this quarter are seeing, again, sequential increases since Q3 and we’ll expect to see that continuing on, particularly in the higher for longer scenario.

Read the entire earnings call transcript here.

Unlike The Procter & Gamble Company (NYSE:PG), Colgate-Palmolive Company (NYSE:CL), and PepsiCo, Inc. (NASDAQ:PEP), which are mature dividend stocks with dividend growth history, HBAN is a small company that is not highly popular among hedge funds.

12. Western Union Co (NYSE:WU)

Number of Hedge Fund Investors: 27

Financial services company Western Union Co (NYSE:WU) shares have lost about 15% year to date through December 16. It is among the high-yield dividend stocks in our list, with a dividend yield of over 7% as of December 16.

A total of 27 hedge funds in Insider Monkey’s database had stakes in Western Union Co (NYSE:WU).

Ariel Focus Fund made the following comment about The Western Union Company (NYSE:WU) in its third 2023 investor letter:

“Global leader in money transfer services The Western Union Company (NYSE:WU), also advanced following a top- and bottom-line earnings beat and subsequent raise in full-year guidance. These results were aided by regulatory change in Iraq and margin expansion in the retail business. Meanwhile, management continues to return capital to shareholders through dividends and share repurchases. Although the company anticipates the macroeconomic environment will continue to slow, it reminded investors remittances have proved resilient in prior periods of economic contraction. At current levels, WU is trading at a discount to our estimate of private market value.”

11. Newell Brands Inc (NASDAQ:NWL)

Number of Hedge Fund Investors: 27

Consumer products company Newell Brands Inc (NASDAQ:NWL) ranks 11th  in our list of the best low-priced dividend stocks to invest in according to hedge funds.

Insider Monkey’s database of 910 hedge funds shows that 27 funds had stakes in Newell Brands Inc (NASDAQ:NWL). The biggest stakeholder of Newell Brands Inc (NASDAQ:NWL) during this period was Richard S. Pzena’s Pzena Investment Management which owns a $495 million stake in Newell Brands Inc (NASDAQ:NWL).

10. Algonquin Power & Utilities Corp (NYSE:AQN)

Number of Hedge Fund Investors: 28

Canadian renewable energy and utility company Algonquin Power & Utilities Corp (NYSE:AQN)  ranks 10th  in our list of the best low-priced dividend stocks to buy now. In November, Algonquin Power & Utilities Corp (NYSE:AQN) declared a dividend of $0.1085 per share. Dividend yield at the time came in at 7.76%.

A total of 28 hedge funds in Insider Monkey’s database were long Algonquin Power & Utilities Corp (NYSE:AQN). The biggest hedge fund stakeholder of Algonquin Power & Utilities Corp (NYSE:AQN) was Jeffrey Smith’s Starboard Value LP which owns a $346 million stake in Algonquin Power & Utilities Corp (NYSE:AQN).

9. Organon & Co (NYSE:OGN)

Number of Hedge Fund Investors: 33

With a dividend yield of about 8%, New Jersey-based pharmaceutical company Organon & Co (NYSE:OGN) ranks 9th in our list of the best low-priced dividend stocks.

Of the 910 hedge funds in Insider Monkey’s database, 33 fund had stakes in Organon & Co (NYSE:OGN).

Organon & Co’s (NYSE:OGN) CFO Matthew Walsh, while answering a question about Organon & Co’s (NYSE:OGN) dividend safety and FCF, said in Q3 earnings call:

And when you combine that with the fact that we expect to see lower onetime costs from the separation next year, we’re actually quite optimistic about what next year’s free cash flow number will look like and when we guide to that in February.

In terms of capital allocation, we’ve been, since the spin-off, trying to achieve a balance of capital allocation between investments and growth for the future, and balancing that against the near term and certain benefits of leverage reduction. That equation has been tilted a little bit more, given where interest rates have gone, the near-term benefits of debt reduction look more attractive. So as we’ve said in the past a few times, it raises the bar on the type of business development and M&A transactions that we would execute. And that’s one of the reasons why you’ve seen, relatively speaking, a lower level of activity in BD in 2023 than you saw in 2022. We continue to believe that the business — the cash flow profile that the business exhibits supports a dividend, certainly at the level that we have.

Read the entire earnings call transcript here.

Miller Value Income Strategy made the following comment about Organon & Co. (NYSE:OGN) in its Q3 2023 investor letter:

“Organon & Co. (NYSE:OGN) reported 2Q23 revenue of $1.61B, +1.5% Y/Y, ahead of consensus of $1.57B, and Adjusted EPS from continuing operations of $1.31, +4.8% Y/Y, well ahead of consensus of $1.00. Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) for the quarter came in at $530MM, or a margin of 33.0%, +66bps Y/Y. Biosimilars revenue increased 14% Y/Y (+15% excluding the impact of foreign currency (ex-FX)), driven by a 20% Y/Y ex-FX increase in Renflexis sales, while the Women’s Health segment saw top-line growth of 8% (+10% ex-FX), driven primarily by Nexplanon sales growth of 12% ex-FX. The company maintained a quarterly dividend of $0.28/share, or an annualized yield of ~6.5%. Management revised FY23 guidance for revenue of $6.35B (vs. prior guidance of $6.30B), and an Adjusted EBITDA margin of 32.3% (vs. prior guidance of 32.0%), at the respective midpoints, implying FY23 Adjusted EBITDA of $2.05B, or an Enterprise Value (EV)/EBITDA multiple of ~6.3x.”

8. Vale SA (NYSE:VALE)

Number of Hedge Fund Investors: 34

Mining company Vale SA (NYSE:VALE) is a notable dividend stock in our list. In November Vale SA (NYSE:VALE) stock was upgraded by Goldman Sachs to Buy from Neutral.

“The story is now too attractive to ignore and investors will slowly increase exposure as confidence around iron ore supply/demand balance in 2024 increases,” Goldman’s Marcio Farid said in a report.

7. Energy Transfer LP Unit (NYSE:ET)

Number of Hedge Fund Investors: 34

Energy Transfer LP Unit (NYSE:ET) is a high dividend yield stock in our list of the best low-priced stocks to buy for dividends.

As of the end of the third quarter of 2023, 34 hedge funds were long Energy Transfer LP Unit (NYSE:ET). The most significant stake in Energy Transfer LP Unit (NYSE:ET) belongs to David Abrams’ Abrams Capital Management which owns a $250 million stake in Energy Transfer LP Unit (NYSE:ET).

Like The Procter & Gamble Company (NYSE:PG), Colgate-Palmolive Company (NYSE:CL) and PepsiCo, Inc. (NASDAQ:PEP), ET is a dividend stock popular among hedge funds.

6. New York Community Bancorp, Inc. (NYSE:NYC)

Number of Hedge Fund Investors: 35

With a dividend yield of 6% and a stock price of $10.96 as of December 16, New York Community Bancorp, Inc. (NYSE:NYC) ranks 6th in our list of the best low-priced dividend stocks to invest in according to hedge funds.

During the third quarter of this year, New York Community Bancorp, Inc. (NYSE:NYC) earned $0.36 per share, beating estimates by $0.01. Revenue in the quarter jumped 203% year over year.

Click to continue reading and see the 5 Best Low-Priced Dividend Stocks To Invest In.

Suggested Articles:

Disclosure. None. 13 Best Low-Priced Dividend Stocks To Invest In was initially published on Insider Monkey.

AI, Tariffs, Nuclear Power: One Undervalued Stock Connects ALL the Dots (Before It Explodes!)

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

AI is eating the world—and the machines behind it are ravenous.

Each ChatGPT query, each model update, each robotic breakthrough consumes massive amounts of energy. In fact, AI is already pushing global power grids to the brink.

Wall Street is pouring hundreds of billions into artificial intelligence—training smarter chatbots, automating industries, and building the digital future. But there’s one urgent question few are asking:

Where will all of that energy come from?

AI is the most electricity-hungry technology ever invented. Each data center powering large language models like ChatGPT consumes as much energy as a small city. And it’s about to get worse.

Even Sam Altman, the founder of OpenAI, issued a stark warning:

“The future of AI depends on an energy breakthrough.”

Elon Musk was even more blunt:

“AI will run out of electricity by next year.”

As the world chases faster, smarter machines, a hidden crisis is emerging behind the scenes. Power grids are strained. Electricity prices are rising. Utilities are scrambling to expand capacity.

And that’s where the real opportunity lies…

One little-known company—almost entirely overlooked by most AI investors—could be the ultimate backdoor play. It’s not a chipmaker. It’s not a cloud platform. But it might be the most important AI stock in the US owns critical energy infrastructure assets positioned to feed the coming AI energy spike.

As demand from AI data centers explodes, this company is gearing up to profit from the most valuable commodity in the digital age: electricity.

The “Toll Booth” Operator of the AI Energy Boom

  • It owns critical nuclear energy infrastructure assets, positioning it at the heart of America’s next-generation power strategy.
  • It’s one of the only global companies capable of executing large-scale, complex EPC (engineering, procurement, and construction) projects across oil, gas, renewable fuels, and industrial infrastructure.
  • It plays a pivotal role in U.S. LNG exportation—a sector about to explode under President Trump’s renewed “America First” energy doctrine.

Trump has made it clear: Europe and U.S. allies must buy American LNG.

And our company sits in the toll booth—collecting fees on every drop exported.

But that’s not all…

As Trump’s proposed tariffs push American manufacturers to bring their operations back home, this company will be first in line to rebuild, retrofit, and reengineer those facilities.

AI. Energy. Tariffs. Onshoring. This One Company Ties It All Together.

While the world is distracted by flashy AI tickers, a few smart investors are quietly scooping up shares of the one company powering it all from behind the scenes.

AI needs energy. Energy needs infrastructure.

And infrastructure needs a builder with experience, scale, and execution.

This company has its finger in every pie—and Wall Street is just starting to notice.

Wall Street is noticing this company also because it is quietly riding all of these tailwinds—without the sky-high valuation.

While most energy and utility firms are buried under mountains of debt and coughing up hefty interest payments just to appease bondholders…

This company is completely debt-free.

In fact, it’s sitting on a war chest of cash—equal to nearly one-third of its entire market cap.

It also owns a huge equity stake in another red-hot AI play, giving investors indirect exposure to multiple AI growth engines without paying a premium.

And here’s what the smart money has started whispering…

The Hedge Fund Secret That’s Starting to Leak Out

This stock is so off-the-radar, so absurdly undervalued, that some of the most secretive hedge fund managers in the world have begun pitching it at closed-door investment summits.

They’re sharing it quietly, away from the cameras, to rooms full of ultra-wealthy clients.

Why? Because excluding cash and investments, this company is trading at less than 7 times earnings.

And that’s for a business tied to:

  • The AI infrastructure supercycle
  • The onshoring boom driven by Trump-era tariffs
  • A surge in U.S. LNG exports
  • And a unique footprint in nuclear energy—the future of clean, reliable power

You simply won’t find another AI and energy stock this cheap… with this much upside.

This isn’t a hype stock. It’s not riding on hope.

It’s delivering real cash flows, owns critical infrastructure, and holds stakes in other major growth stories.

This is your chance to get in before the rockets take off!

Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.

The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.

As an investor, you want to be on the side of the winners, and AI is the winning ticket.

The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI.

From computer scientists to mathematicians, the next generation of innovators is pouring its energy into this field.

This influx of talent guarantees a constant stream of groundbreaking ideas and rapid advancements.

By investing in AI, you’re essentially backing the future.

The future is powered by artificial intelligence, and the time to invest is NOW.

Don’t be a spectator in this technological revolution.

Dive into the AI gold rush and watch your portfolio soar alongside the brightest minds of our generation.

This isn’t just about making money – it’s about being part of the future.

So, buckle up and get ready for the ride of your investment life!

Act Now and Unlock a Potential 100+% Return within 12 to 24 months.

We’re now offering month-to-month subscriptions with no commitments.

For a ridiculously low price of just $9.99 per month, you can unlock our in-depth investment research and exclusive insights – that’s less than a single fast food meal!

Space is Limited! Only 1000 spots are available for this exclusive offer. Don’t let this chance slip away – subscribe to our Premium Readership Newsletter today and unlock the potential for a life-changing investment.

Here’s what to do next:

1. Head over to our website and subscribe to our Premium Readership Newsletter for just $9.99.

2. Enjoy a month of ad-free browsing, exclusive access to our in-depth report on the Trump tariff and nuclear energy company as well as the revolutionary AI-robotics company, and the upcoming issues of our Premium Readership Newsletter.

3. Sit back, relax, and know that you’re backed by our ironclad 30-day money-back guarantee.

Don’t miss out on this incredible opportunity! Subscribe now and take control of your AI investment future!


No worries about auto-renewals! Our 30-Day Money-Back Guarantee applies whether you’re joining us for the first time or renewing your subscription a month later!

A New Dawn is Coming to U.S. Stocks

I work for one of the largest independent financial publishers in the world – representing over 1 million people in 148 countries.

We’re independently funding today’s broadcast to address something on the mind of every investor in America right now…

Should I put my money in Artificial Intelligence?

Here to answer that for us… and give away his No. 1 free AI recommendation… is 50-year Wall Street titan, Marc Chaikin.

Marc’s been a trader, stockbroker, and analyst. He was the head of the options department at a major brokerage firm and is a sought-after expert for CNBC, Fox Business, Barron’s, and Yahoo! Finance…

But what Marc’s most known for is his award-winning stock-rating system. Which determines whether a stock could shoot sky-high in the next three to six months… or come crashing down.

That’s why Marc’s work appears in every Bloomberg and Reuters terminal on the planet…

And is still used by hundreds of banks, hedge funds, and brokerages to track the billions of dollars flowing in and out of stocks each day.

He’s used this system to survive nine bear markets… create three new indices for the Nasdaq… and even predict the brutal bear market of 2022, 90 days in advance.

Click to continue reading…