In this article, we discuss 5 best dividend stocks under $50 according to hedge funds. If you want to read our detailed analysis of dividend stocks and their historic returns, go directly to read 10 Best Dividend Stocks Under $50 According to Hedge Funds.
5. Pfizer Inc. (NYSE:PFE)
Share Price as of August 30: $46.04
Number of Hedge Fund Holders: 70
Pfizer Inc. (NYSE:PFE) is a multinational pharmaceutical and biotech company. In August, Barclays raised its price target on the stock to $52 with an Equal Weight rating on the shares, as the company starts trials for Crohn’s Disease medication.
In Q2 2022, Pfizer Inc. (NYSE:PFE) reported revenue of $27.7 billion, which presented a 45.8% year-over-year growth. The company’s operating cash flow for the quarter came in at $8.1 billion, up from $6.5 billion in the previous quarter. Its free cash flow stood at over $7.4 billion and it paid $4.5 billion in dividends. This shows that the company’s cash flow is enough to cover its dividends.
Pfizer Inc. (NYSE:PFE) has a strong dividend history, raising its dividends consistently for the past 12 years. In the past 10 years, the company has grown its dividend by 82%. It currently pays a quarterly dividend of $0.40 per share, with its shares yielding at 3.49%, as of August 30.
As of the close of Q2 2022, 70 hedge funds tracked by Insider Monkey owned stakes in Pfizer Inc. (NYSE:PFE), down from 79 in the previous quarter. These stakes hold a collective value of over $2.8 billion. With over 10.5 million shares, AQR Capital Management was the company’s leading stakeholder in Q2.
ClearBridge Investments mentioned Pfizer Inc. (NYSE:PFE) in its Q4 2021 investor letter. Here is what the firm has to say:
“While the level of general turnover abated as we progressed through 2021, it remained high in one area: post-COVID-19 recovery plays. The concept behind this investment thesis was, and still is, straightforward: with the advent of effective vaccines, the path from pandemic to endemic is just a matter of time. As this transition occurs, the estimated excess savings of over $2 trillion built up on U.S. consumer balance sheets will unlock dramatic pent-up demand for experiences, especially global travel. This investment case seemed especially compelling when the Pfizer vaccine positively surprised markets in November 2020. As a result, we made post-COVID-19 stocks (which were trading well below our estimate of recovery value) a sizable theme within the portfolio. We understood this to be a more aggressive tilt in positioning because it required a major improvement in demand to catalyze fundamentals and drive price toward higher business values. While we accepted that recovery would not be smooth and that it would take time to deploy vaccines both domestically and globally, we decided that recovery was the logical path of least resistance and we were being well compensated for these risks. (Click here for the full text)
