5 Best Dividend Stocks Under $50 According to Hedge Funds

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 (NYSE:BAC) 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 (NYSE:BAC) 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 (NYSE:BAC) 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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