In this article, we discuss the 5 best affordable dividend stocks to buy. If you want to read our detailed analysis of these cheap dividend-paying companies, go directly to the 10 Best Affordable Dividend Stocks to Buy.
5. Lexington Realty Trust (NYSE: LXP)
Dividend Yield: 3.48%
Price as of May 26: $12.37
No. of Hedge Fund Holders: 12
American REIT Lexington Realty Trust (NYSE: LXP) ranks 5th on the list of 10 best affordable dividend stocks to buy. The REIT owns and operates 132 properties worth $4.4 billion in 29 states across the United States. The company generally funds single-tenant, net-lease assets with long-term contracts in well-located and rising markets in the US. Since 1995, Lexington Realty Trust has been paying quarterly dividends to common shareholders. The company currently pays an annualized dividend of $0.43 per share with a 3.48% yield. Lexington Realty Trust (NYSE: LXP) ranks 5th on the list of 10 best affordable dividend stocks to buy.
The company has a market cap of $3.6 billion. The company’s revenue in the first quarter of 2021 increased by 14.5% to $92.5 million, up from $81 million in the same quarter in 2020. Shares of LXP climbed 29% over the past twelve months.
At the end of the first quarter of 2021, 12 hedge funds in the database of Insider Monkey held stakes worth $33.9 million in Lexington Realty Trust (NYSE: LXP). Out of the hedge funds being tracked by Insider Monkey, Jim Simons’ Renaissance Technologies held the most shares – 907,082 – worth more than $10 million.
4. Annaly Capital Management, Inc. (NYSE: NLY)
Dividend Yield: 9.53%
Price as of May 26, 2021: $9.19
No. of Hedge Fund Holders: 15
Ranking 4th on the list of 10 best affordable dividend stocks to buy now is capital manager Annaly Capital Management, Inc. (NYSE: NLY). Annaly has had a yearly dividend yield of around 10% over the past two decades. The mortgage REIT has been paying quarterly dividends since 1998 with no suspension. The company has returned over $20 billion to its shareholders since its initial public offering (IPO). The New York-based firm is engaged in investing and financing residential and commercial properties. Annaly Capital Management, Inc. invests in federal government-backed agency assets, which have lower long-term yields than non-agency assets yet guarantees safety due to governmental protection. As of March 2021, the company’s portfolio holds total residential and commercial investments of $83 million.
The company has a market cap of $12.9 billion. The company’s net interest income in the first quarter of 2021 came in at $687.4 million, up from $51.6 million in the same period in 2020. Shares of NLY jumped 45% over the past twelve months.
At the end of the first quarter of 2021, 15 hedge funds in the database of Insider Monkey held stakes worth $140 million in Annaly Capital Management, Inc. (NYSE: NLY), down from 21 in the previous quarter worth $317 million.
3. Global Medical REIT Inc. (NYSE: GMRE)
Dividend Yield: 5.64%
Price as of May 26, 2021: $14.50
No. of Hedge Fund Holders: 18
Maryland-based Global Medical REIT Inc. (NYSE: GMRE) ranks 3rd on the list of 10 best affordable dividend stocks to buy now. The REIT invests in healthcare facilities and rents them to reputable hospitals, clinics, and physician groups across the United States. Since 2014, the company has paid quarterly dividend payout without suspension and recently increased quarterly dividend payout by 2.5% to $0.205 per share in March 2021. The company offers a fair yield of 5.64% and currently pays an annualized dividend of $0.82 per share.
The company has a market cap of $881 million. The company’s revenue in the first quarter increased 26.3% year over year to $27.3 million due to acquisition activities. To date in 2021, the company has completed nine purchases totaling 308,048 leasable square feet for an amount invested of $101 million at a weighted average cap rate of 7.4%. Global Medical REIT Inc. reported $0.24 per share in quarterly funds from operations (FFO), exceeding analysts’ expectations of $0.22 per share. BMO Capital initiated coverage of Global Medical REIT on April 16 with an Outperform rating and a $16 stock price target. Shares of GMRE jumped 29% over the past twelve months.
At the end of the first quarter of 2021, 18 hedge funds in the database of Insider Monkey held stakes worth $36.6 million in Global Medical REIT Inc. (NYSE: GMRE), up from 8 in the previous quarter worth $21 million.
2. Two Harbors Investment Corp. (NYSE: TWO)
Dividend Yield: 9.58%
Price as of May 26, 2021: $7.12
No. of Hedge Fund Holders: 32
Minnesota-based residential real estate investment trust (REIT) Two Harbors Investment Corp. (NYSE: TWO) ranks 2nd on the list of 10 best affordable dividend stocks to buy. Founded in 2009, the firm is one of the fastest-growing residential mortgage REITs in the field. The firm invests in, finances, and manages agency residential mortgage-backed assets, mortgage servicing rights, and other financial assets. The company currently pays an annualized dividend of $0.68 per share and offers a high yield of 9.58%. The company has consistently paid its shareholders quarterly dividends for the last 10 years. Two Harbors Investment Corp. recently increased its quarterly payout in January 2021 to $0.17 per share from $0.14 per share in October 2020.
The company has a market cap of $1.95 billion. Shares of TWO surged 49% over the past twelve months. Two Harbors Investment Corp.’s net interest income in the first quarter of 2021 came in at $33.4 million. The stock has gained 49% in the last twelve months.
At the end of the first quarter of 2021, 32 hedge funds in the database of Insider Monkey held stakes worth $200 million in Two Harbors Investment Corp. (NYSE: TWO), up from 18 in the previous quarter worth $58 million.
1. General Electric Company (NYSE: GE)
Dividend Yield: 0.30%
Price as of May 26, 2021: $13.4
No. of Hedge Fund Holders: 69
Topping the list of the 10 best affordable dividend stocks to buy is American industrial firm General Electric Company (NYSE: GE). The Boston-based company manufactures industrial tools and equipment for the healthcare, aviation, power, and renewable energy industries. GE was a former Dividend Aristocrat as the company has shown over 3 decades of dividend payment increase. Despite being a lousy dividend stock in the recent past, the firm has made tremendous headway in rebuilding its balance sheet. The company currently pays an annual dividend of $.04 per share with a 0.3% dividend yield
General Electric Company’s first-quarter revenue came in at $16.3 billion. Debt was lowered by nearly $4 billion in the first quarter, according to the company’s Q1 2021 report. With $32 billion in cash on hand, the business began the fiscal year 2021 with a strong start. GE reaffirmed and adjusted its earnings estimate of $0.15 to $0.25 per share, as well as $2.5 billion to $4.5 billion in industrial free cash flows. The shares of GE jumped 98% over the past twelve months. In May 2021, Citigroup analysts resumed the Buy rating on General Electric Company with a $17 price target.
At the end of the first quarter of 2021, 68 hedge funds in the database of Insider Monkey held stakes worth $6.2 billion in General Electric Company (NYSE: GE), down from 69 in the previous quarter worth $5.7 billion.
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