5 Best Dividend Stocks Under $20

1 -Vertiv Holdings, LLC (NYSE:VRT)

Vertiv Holdings is a Columbus, Ohio based mid-cap company and at the time of this writing had a $6.3 billion market capitalization. The company “provides mission-critical infrastructure technologies and life cycle services for data centers, communication networks, and commercial and industrial environments” according to its website.

On 28/10/2020, the Board of Directors declared cash dividend of $0.01 for the first time, which constitute the lowest dividend amount in our list. Despite the 0.05% dividend yield in annualized terms, 51 hedge funds did not hesitate to buy the shares of this company. Brahman Capital is the largest hedge fund holder of VRT with a total investment of $137 million. Hedge Fund Eminence Capital, which is led by Ricky Sandler, follows Brahman Capital with a $115 million position.

GreenWood Investors recently talked about VRT in its Q2 2020 investor letter. Here is what they said:

“Vertiv, which makes cooling and power solutions for data centers, reported a 9% drop in second quarter organic revenue. Due to both supply and customer logistical issues, the company had trouble completing customer orders, which are accelerating at a record rate with the widespread increase in data consumption around the world (ending the second quarter with a record high backlog of $1.8 billion). Chris recently detailed Executive Chairman David Cote’s book, Winning Now, Winning Later, in an article which you can read by clicking here. Of course it didn’t take a genius to understand data center capacity was going to have to accelerate around the world just as Vertiv’s stock was cut in half earlier this year. We are excited to own Vertiv for the long-term, as Cote turns it into the Danaher of data-centers. With Cote, we are getting a seasoned manager from Honeywell, but in a much smaller company in an equally large addressable market. We are excited for him to exceed his Honeywell performance given a better and smaller collection of assets with stronger industry tailwinds.”

Please also see 10 Best High Dividend Stocks To Buy and 10 Best Dividend Paying Stocks Under $50

Disclosure: None.