5 Best Dividend Stocks Under $50 According to Hedge Funds

3. Citigroup Inc. (NYSE:C)

Share Price as of August 30: $49.14
Number of Hedge Fund Holders: 82

Citigroup Inc. (NYSE:C) is an American multinational investment banking company that also provides other financial services to its consumers. Though the company has not raised its dividends consecutively, it has been making uninterrupted dividend payments for over 10 years. Its quarterly payout stands at $0.51 per share, with a dividend yield of 4.16%, as of August 30.

In Q2 2022, Citigroup Inc. (NYSE:C) reported revenue of $19.6 billion, up 12.4% from the same period last year. The company’s operating cash flow for the quarter came in at over $10.2 billion while its free cash flow stood at over $9 billion. In addition to this, it returned over $1.3 billion to shareholders in dividends and share repurchases during the quarter.

In July, Oppenheimer raised its price target on the stock to $86 with an Outperform rating on the shares, appreciating the company’s strong balance sheet and its shareholder return.

As per Insider Monkey’s Q2 2022 database, 82 hedge funds owned stakes in Citigroup Inc. (NYSE:C), down from 88 in the previous quarter. The collective value of these stakes is over $7.4 billion. Berkshire Hathaway owned $2.5 billion worth of stakes in the banking company, becoming its largest stakeholder in Q2.

Diamond Hill Capital mentioned Citigroup Inc. (NYSE:C) in its Q1 2022 investor letter. Here is what the firm has to say:

“Shares of Citigroup declined in the quarter as investors became increasingly negative on capital markets activity. The company is also continuing to divest certain consumer banking geographies which may be dilutive to earnings in the near term.”