In this article, we will be taking a look at 10 cheap dividend stocks that will help you retire before 40. To read our detailed analysis of these stocks, you can go directly to see the 10 Cheap Dividend Stocks that Will Help You Retire Before 40.
5. Equitrans Midstream Corporation (NYSE: ETRN)
Number of Hedge Fund Holders: 27
Dividend Yield: 7.33%
Stock Price as of August 23: $8.20
Equitrans Midstream Corporation (NYSE: ETRN), an oil and gas storage and transportation company, owns, operates, acquires, and develops natural gas gathering, transmission, and storage, and water services assets. The company mainly functions in the Appalachian Basin and operates through its Gathering System, Transmission and Storage System, and Water Service System segments. It ranks 5th on our list of cheap dividend stocks that will help you retire before 40.
This June, Barclays raised its price target on shares of Equitrans Midstream Corporation (NYSE: ETRN) from $7 to $9.
In the second quarter of 2021, Equitrans Midstream Corporation (NYSE: ETRN) had an EPS of $0.13, missing estimates by $0.09. The company’s revenue was $358.3 million, up 2.26% year over year and beating estimates by $7.42 million. Equitrans Midstream Corporation (NYSE: ETRN) has gained 11.60% in the past 6 months and 5.68% year to date.
By the end of the second quarter of 2021, 27 hedge funds out of the 873 tracked by Insider Monkey held stakes in Equitrans Midstream Corporation (NYSE: ETRN) worth roughly $289 million. This is compared to 28 hedge funds in the previous quarter with a total stake value of approximately $361 million.
4. Arbor Realty Trust, Inc. (NYSE: ABR)
Number of Hedge Fund Holders: 18
Dividend Yield: 7.71%
Stock Price as of August 23: $17.80
Arbor Realty Trust, Inc. (NYSE: ABR) is a company working to invest in a diversified portfolio of structured finance assets in the multifamily, single-family, rental, and commercial real estate markets in the US. It ranks 4th on our list of cheap dividend stocks that will help you retire before 40. The company operates through its Structured Business and Agency Business segments.
This April, Charlie Arestia, an analyst at JPMorgan, raised his price target on shares of Arbor Realty Trust, Inc. (NYSE: ABR) to $18. He also reiterated an Overweight rating on Arbor Realty Trust, Inc. (NYSE: ABR) shares.
In the second quarter of 2021, Arbor Realty Trust, Inc. (NYSE: ABR) had an FFO of $0.51, beating estimates by $0.07. The company’s revenue was $58.77 million, up 40.67% year over year and beating estimates by $4.50 million. Arbor Realty Trust, Inc. (NYSE: ABR) has gained 6.17% in the past 6 months and 25.69% year to date.
By the end of the second quarter of 2021, 18 hedge funds out of the 873 tracked by Insider Monkey held stakes in Arbor Realty Trust, Inc. (NYSE: ABR) worth roughly $109 million. This is compared to 21 hedge funds in the previous quarter with a total stake value of approximately $103 million.
3. New Residential Investment Corp. (NYSE: NRZ)
Number of Hedge Fund Holders: 20
Dividend Yield: 8.42%
Stock Price as of August 23: $9.70
New Residential Investment Corp. (NYSE: NRZ) is a real estate investment trust that primarily works to invest in and manage residential mortgage-related assets in the US. The company ranks 3rd on our list of cheap dividend stocks that will help you retire before 40 and operates through its Origination, Servicing, MSR Related Investments, Residential Securities and Loan, and Consumer Loans segments.
Kevin Barker, an analyst at Piper Sandler, just this April raised his price target on shares of New Residential Investment Corp. (NYSE: NRZ) from $11.50 to $13. The analyst also reiterated an Overweight rating on the stock.
In the second quarter of 2021, New Residential Investment Corp. (NYSE: NRZ) had an FFO of $0.31, beating estimates by $0.01. The company’s revenue was $454.05 million, up 0.51% year over year but missing estimates by $181.15 million. New Residential Investment Corp. (NYSE: NRZ) has gained 0.21% year to date and 20.87% in the past year.
By the end of the second quarter of 2021, 20 hedge funds out of the 873 tracked by Insider Monkey held stakes in New Residential Investment Corp. (NYSE: NRZ) worth roughly $129 million. This is compared to 15 hedge funds in the previous quarter with a total stake value of approximately $84.8 million.
2. Two Harbors Investment Corp. (NYSE: TWO)
Number of Hedge Fund Holders: 30
Dividend Yield: 10.4%
Stock Price as of August 23: $6.36
Two Harbors Investment Corp. (NYSE: TWO), another real estate investment trust, focuses on investing in, financing, and managing residential mortgage-backed securities (RMBS) and a range of other financial assets in the US. The company targets agency RMBS collateralized by fixed-rate mortgage loans, adjustable-rate mortgage loans, and hybrid adjustable-rate mortgage (ARM), among other assets. It ranks 2nd on our list of cheap dividend stocks that will help you retire before 40.
Douglas Harter, an analyst at Credit Suisse, has a Hold rating on shares of Two Harbors Investment Corp. (NYSE: TWO) as of this June. The analyst also placed a $7.50 price target on the stock.
In the second quarter of 2021, Two Harbors Investment Corp. (NYSE: TWO) had an FFO of $0.19, beating the previous quarter’s FFO of $0.17. The company’s revenue was $19.04 million, missing estimates by $24.47 million. Two Harbors Investment Corp. (NYSE: TWO) has gained 1.13% year to date and 14.47% in the past year.
By the end of the second quarter of 2021, 30 hedge funds out of the 873 tracked by Insider Monkey held stakes in Two Harbors Investment Corp. (NYSE: TWO) worth roughly $160 million. This is compared to 32 hedge funds in the previous quarter with a total stake value of approximately $200 million.
1. ARMOUR Residential REIT, Inc. (NYSE: ARR)
Number of Hedge Fund Holders: 13
Dividend Yield: 11.64%
Stock Price as of August 23: $10.50
ARMOUR Residential REIT, Inc. (NYSE: ARR) is another real estate investment trust, and next and last on our list of cheap dividend stocks that will help you retire before 40. The company was founded in 2008 and is based in Florida, US.
Matt Howlett, an analyst at B. Riley, holds a Neutral rating and an $11.50 price target on shares of ARMOUR Residential REIT, Inc. (NYSE: ARR) as of this July.
In the second quarter of 2021, ARMOUR Residential REIT, Inc. (NYSE: ARR) had an FFO of $0.21, missing estimates by $0.07. The company’s revenue was $16.7 million, beating the previous quarter’s $16.06 million revenue. ARMOUR Residential REIT, Inc. (NYSE: ARR) has gained 7.28% in the past year.
By the end of the second quarter of 2021, 13 hedge funds out of the 873 tracked by Insider Monkey held stakes in ARMOUR Residential REIT, Inc. (NYSE: ARR) worth roughly $32.3 million. This is compared to 9 hedge funds in the previous quarter with a total stake value of approximately $22.2 million.
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