10 Best Dividend Stocks Under $50 According to Hedge Funds

Published August 31, 2022 at 9:06 am EDT Updated September 7, 2026 at 2:25 pm EDT

In this article, we discuss 10 best dividend stocks under $50 according to hedge funds.

As global financial markets suffered heavy losses this year, institutional and individual investors are flocking toward dividend stocks to survive through this uncertainty. Famous hedge fund managers like Warren Buffett earn millions in dividends every year, prompting other investors to follow suit. Dividend companies are mainly favored by investors because their regular passive income is rewarding for them in the current inflationary environment. According to Hartford Funds, in seven out of eight inflationary periods since the 1970s, dividend companies outperformed their non-dividend peers. This has resulted in steady dividend hikes through the first two quarters of this year.

In a recent report, Bloomberg revealed that dividend payments in the US grew by 8.3% in the second quarter of 2022, reaching $144.4 billion. This marked the dividend payments’ all-time quarterly high. The report further mentioned that 94% of the companies raised their dividends after recovering from the pandemic of 2020. Janus Henderson now expects dividend payments to reach $1.56 trillion in 2022, up from its original consensus of $1.54 trillion.

According to a report by Ameriprise Financial, dividend income represented nearly 40% of the S&P 500 Index returns over the past 90 years. Matt Peron, director of research at Janus Henderson, said in his Bloomberg interview that investors are paying attention to dividend companies with strong free cash flow generation due to uncertain market conditions. He further mentioned that even though a slowdown in economic growth is expected next year, many companies would refrain from trimming their dividends. In this regard, dividend stocks like The Coca-Cola Company (NYSE:KO), PepsiCo, Inc. (NASDAQ:PEP), and Johnson & Johnson (NYSE:JNJ) are popular among investors because of their extended dividend growth histories. In this article, we will discuss 10 best dividend stocks under $50 according to hedge funds.

Our Methodology:

For this list, we used the data of 895 elite funds in Insider Monkey’s database as of the end of the second quarter of 2022 to select the most popular dividend stocks among these hedge funds, with share prices under $50. The stocks are ranked according to hedge fund positions.

Photo by Dan Dennis on Unsplash

Best Dividend Stocks Under $50 According to Hedge Funds

10. Verizon Communications Inc. (NYSE:VZ)

Share Price as of August 30: $42.6

Number of Hedge Fund Holders: 58

Verizon Communications Inc. (NYSE:VZ) is an American multinational telecommunications company that has one of the largest LTE networks. In the first half of 2022, the company’s cash flow from operating activities stood at $17.7 billion and its free cash flow was over $5.7 billion. The company’s total revenue for the quarter came in at $33.8 billion while its net income stood at $5.3 billion.

Verizon Communications Inc. pays a quarterly dividend of $0.64 per share, raising it by 2% in September 2021. This was the company’s 15th consecutive year of dividend growth. Its dividend payments are safe with a payout ratio of 51.4%. As of August 30, the stock’s dividend yield came in at 6.00%.

In August, Morgan Stanley mentioned Verizon Communications Inc. in its investors’ note, expecting the company to raise its dividend for the 16th consecutive year. In addition to this, the firm also appreciated the company’s secure dividend payments.

At the end of Q2 2022, 58 hedge funds in Insider Monkey’s database owned stakes in Verizon Communications Inc., compared with 69 in the previous quarter. These stakes have a total value of nearly $2.3 billion. Fisher Asset Management was the company’s leading stakeholder in Q2.

In addition to The Coca-Cola Company, PepsiCo, Inc., and Johnson & Johnson, Verizon Communications Inc. is also favored by income investors due to the company’s solid financials.

9. CSX Corporation (NASDAQ:CSX)

Share Price as of August 30: $31.7

Number of Hedge Fund Holders: 63

CSX Corporation (NASDAQ:CSX) is a Florida-based transportation company that focuses on rail transportation and real estate in North America. The company maintains one of the longest track records of dividend growth in the transport sector, extending to 17 years. It currently pays a quarterly dividend of $0.10 per share and has a yield of 1.26%, as of August 30.

In Q2 2022, CSX Corporation reported an operating cash flow of over $1.2 billion, consistent with the previous quarter. The company’s cash flow for the quarter stood at $751 million, 21.5% of which represented the dividend payments. In addition to this, its revenue of $3.8 billion presented a 27.8% year-over-year growth.

In July, Cowen set a $37 price target on CSX Corporation with a Market Perform rating on the shares, highlighting the company’s strong coal pricing and stable volumes.

As of the close of Q2 2022, 63 hedge funds in Insider Monkey’s database owned stakes in CSX Corporation, worth over $5.1 billion.

ClearBridge Investments mentioned CSX Corporation in its Q4 2021 investor letter. Here is what the firm has to say:

“On a regional basis, the U.S. and Canada was the top contributor to quarterly performance, of which U.S. rail operators CSX was among the lead performers. CSX is one of five leading North American rail companies, with over 21,000 miles of rail, covering 23 states and 40+ ports. CSX is engaged in the transportation of rail freight in the Southeast, East, and Midwest via interchange with other rail carriers, to and from the rest of the U.S. and Canada. CSX performed well during the quarter after the company beats market expectations on its third-quarter results. The beats were largely driven by strong pricing, which could be hitting record highs, and healthy commodity/coal volume driven by the current energy crisis.”

8. Marvell Technology, Inc. (NASDAQ:MRVL)

Share Price as of August 30: $48.09

Number of Hedge Fund Holders: 63

Marvell Technology, Inc. (NASDAQ:MRVL) is a California-based manufacturing company that produces and develops semiconductors and related technology. According to Insider Monkey’s data, 63 hedge funds owned stakes in the company in Q2, the same as in the previous quarter. These stakes hold a collective value of roughly $1.6 billion. Among these hedge funds, Marshall Wace LLP owned the largest stake in the company, worth $214 million.

In its recently announced Q2 results, Marvell Technology, Inc. reported revenue of $1.52 billion, which showed a 41% year-over-year growth. The company’s operating cash flow came in at $331.5 million, up from $194.8 million in the previous quarter. Its free cash flow also jumped to $256.3 million, from $156 million in the preceding quarter.

Marvell Technology, Inc. currently pays a quarterly dividend of $0.06 per share and has a yield of 0.50%, as of August 30. The company’s payout ratio stands at 11.01%.

Following the company’s strong quarterly earnings, BofA raised its price target on Marvell Technology, Inc. in August to $65, while maintaining a Buy rating on the shares.

ClearBridge Investments mentioned Marvell Technology, Inc. in its Q4 2021 investor letter. Here is what the firm had to say:

“The ClearBridge Mid Cap Growth Strategy continued to deliver strong absolute and relative returns as our focus on de-risking investments prior to purchase and managing position sizes has made a difference through recent market turbulence. Marvell Technology, a leader in semiconductor manufacturing, is in the second-largest position in the Strategy but just one of three stocks with a weighting of over 3% in a diversified growth portfolio of over 70 names. With a wide range of exposure to fast-growing IT subsectors, including 5G telecommunications, data centers, cloud computing, and electric vehicles, Marvell’s ability to secure a crucial supplier position at the nexus of these technologies leaves it well-positioned to participate in their long-term growth. Strength in companies like Marvell offset weakness in higher multiple growth names that were dragged down by negative sentiment or short-term execution issues.”

7. Cisco Systems, Inc. (NASDAQ:CSCO)

Share Price as of August 30: $45.3

Number of Hedge Fund Holders: 63

Cisco Systems, Inc. (NASDAQ:CSCO) is an American multinational technology company that provides cloud and security solutions to its consumers. In August, Cowen raised its price target on the stock to $60 with an Outperform rating on the shares, appreciating the company’s solid quarterly earnings.

In fiscal Q4 2022, Cisco Systems, Inc. reported $3.7 billion in cash flow from operating activities while its free cash flow came in at $3.5 billion. The company returned nearly $4 billion to shareholders during the quarter, $1.6 billion of which was paid in dividends. In addition to this, it ended the quarter with $19.3 billion available in cash and cash equivalents.

Cisco Systems, Inc. has been raising its dividends consistently for the past 11 years. It currently offers a quarterly payout of $0.38 per share, with a dividend yield of 3.36%, as recorded on August 30. The company’s payout ratio is safe at 53.1%.

At the end of Q2 2022, 63 hedge funds tracked by Insider Monkey were bullish on Cisco Systems, Inc., compared with 66 in the previous quarter. These stakes are collectively valued at around $2 billion.

Carillon Tower Advisers mentioned Cisco Systems, Inc. in its Q1 2022 investor letter. Here is what the firm has to say:

“Cisco Systems (NASDAQ:CSCO) traded lower as investors weighed how supply chain concerns would impact sales growth. The company has been upgrading its switching and routing offerings, which should lead to strong demand as on-site locations upgrade infrastructure.”

6. Intel Corporation (NASDAQ:INTC)

Share Price as of August 30: $32.4

Number of Hedge Fund Holders: 65

Intel Corporation (NASDAQ:INTC) provides services in cloud computing and data center and also manufactures semiconductor chips. The company has been raising its dividends consistently for the past seven years. It currently pays a quarterly dividend of $0.365 per share, with a dividend yield of 4.53%, as of August 30.

Though Intel Corporation missed analysts’ estimates on various accounts in Q2 2022, the company’s cash position remained stable. The company ended the quarter with $4.4 billion available in cash and cash equivalents, while its total assets stood at $50.5 billion. It generated $809 million in cash from operations with net revenue of $15.3 billion. Intel Corporation remained committed to shareholder returns, paying $1.5 billion in dividends during the quarter.

As of the end of June 2022, 65 hedge funds tracked by Insider Monkey owned stakes in Intel Corporation, with a total value of over $2.5 billion. Generation Investment Management was the company’s leading stakeholder in Q2.

Intel Corporation can be a good addition to dividend portfolios in addition to other dividend stocks like The Coca-Cola Company, PepsiCo, Inc., and Johnson & Johnson.

Baron Funds mentioned Intel Corporation in its Q1 2022 investor letter. Here is what the firm had to say:

“Intel’s capital spending process is guided by a process they appropriately named “copy exactly.” This means that they attempt to “copy exactly” what they have already built and attempt to improve tried and true processes iteratively.”

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. 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. 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., 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. 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)

4. Comcast Corporation (NASDAQ:CMCSA)

Share Price as of August 30: $35.9
Number of Hedge Fund Holders: 75

An American multinational telecommunications company, Comcast Corporation (NASDAQ:CMCSA) was a part of 75 hedge fund portfolios in Q2 2022, according to Insider Monkey’s data. The stakes owned by these hedge funds hold a total value of nearly $5.4 billion.

Comcast Corporation has been raising its dividends consistently for the past 14 years. It currently pays a quarterly dividend of $0.27 per share and has a yield of 3.02%, as recorded on August 30.

In Q2 2022, Comcast Corporation generated $3.1 billion in free cash flow while its cash from operations came in at over $6.3 billion. The company returned $4.2 billion to shareholders during the quarter, with dividend payments amounting to over $1.2 billion. Moreover, it had over $6.8 billion available in cash and cash equivalents at the end of the quarter. The company’s stable cash generation shows that it is well-positioned to maintain its dividends in the future.

ClearBridge Investments mentioned Comcast Corporation in its Q4 2021 investor letter. Here is what the firm had to say:

“Weakness among our holdings in the communication services sector was the other detractor to performance. Comcast was hurt by tepid subscriber growth in its broadband business but demonstrated strong growth in free cash flow, positioning the company for accelerated capital return going forward.”

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. 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., 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. 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.”

2. Wells Fargo & Company (NYSE:WFC)

Share Price as of August 30: $44.01
Number of Hedge Fund Holders: 83

Wells Fargo & Company is a California-based multinational financial services company. Appreciating the company’s strong Q2 results, Barclays set a $58 price target on the stock in July with an Overweight rating on the shares.

On July 26, Wells Fargo & Company declared a 20% hike in its quarterly dividend to $0.30 per share. The company has been paying dividends to shareholders since 1995. As of August 30, the stock’s dividend yield came in at 2.72%.

In Q2 2022, Wells Fargo & Company reported over $166 million available in cash, cash equivalents, and restricted cash. The company’s total assets amount to over $1.8 billion and its revenue for the quarter stood at $17.03 billion. Moreover, it generated over $7.5 billion in free cash flow.

According to Insider Monkey’s database, 83 hedge funds owned stakes in Wells Fargo & Company, compared with 93 in the previous quarter. These stakes are valued at over $5.16 billion.

1. Bank of America Corporation (NYSE:BAC)

Share Price as of August 30: $34.02
Number of Hedge Fund Holders: 99

Bank of America Corporation (NYSE:BAC) is a North Carolina-based investment bank and financial services company. It has been raising its dividend consistently for the past 9 years. Currently, it pays a quarterly dividend of $0.22 per share, with a dividend yield of 2.58%, as recorded on August 30.

In July, RBC Capital reiterated its Outperform rating on Bank of America Corporation and appreciated its diversified business model in the current economic landscape. The firm further lauded the company’s strong revenue growth.

The number of hedge funds tracked by Insider Monkey owning stakes in Bank of America Corporation stood at 99 in Q2 2022, the same as in the previous quarter. The collective value of these stakes is roughly $36 billion. Warren Buffett, Ken Griffin, and D. E. Shaw were some of the company’s major stakeholders in Q2.

Miller Value Partners mentioned Bank of America Corporation in its Q1 2022 investor letter. Here is what the firm has to say:

“There are many times when volatility and beta give false signals. Banks outperformed in the post-tech bubble bear market of the early 2000s. At the market peak prior to the financial crisis (when risk was the highest in those names!), Bank of America (NYSE:BAC) had a 0.9x beta (based on the trailing 5 years) suggesting its “risk” was below the market’s. Wrong! It massively underperformed in the financial crisis. Realized beta over the 5 years from the pre-crisis’ 2006 peak measured 2.3x.

A much better indicator of actual risk, both before and after the financial crisis, was the quality of the balance sheet and risk-taking appetite. Beta is backwards looking and non-stationary. Relying on it underestimated risk going into the financial crisis and overestimated coming out of it (its beta has continued to fall over the past decade).

We care greatly about risk. We spend a significant amount of time thinking about the risks to our investments. We measure risk as permanent impairment of capital, which means the prices and values don’t bounce back. Business fundamentals determine risk.”

You can also take a look at 10 Best Renewable Energy Stocks to Buy and Hold for the Next 10 Years and 10 Best Stocks to Invest Your $1000 According to Reddit

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