In this article, we discuss 5 cheap dividend stocks to consider. If you want to see some more stocks in this selection, click 10 Cheap Dividend Stocks to Buy Today.
5. Horizon Technology Finance Corporation (NASDAQ:HRZN)
Number of Hedge Fund Holders: 6
Share Price as of March 28: $14.13
Dividend Yield as of March 28: 8.49%
Horizon Technology Finance Corporation (NASDAQ:HRZN) is a business development company that lends and invests in development-stage venture capital backed companies that operate in the technology, life sciences, healthcare information, and cleantech industries.
On March 1, Horizon Technology Finance Corporation (NASDAQ:HRZN) reported its Q4 results, posting earnings per share of $0.39, topping market consensus by $0.03. Revenue over the period gained 68.34% from the prior-year quarter, reaching $16.95 million, surpassing analysts’ estimates by $1.13 million.
Horizon Technology Finance (NASDAQ:HRZN) declared on March 1 a $0.10 per share monthly dividend, in line with previous. The dividend is payable on April 14, for shareholders of record on March 18.
According to the Q4 database of Insider Monkey, 6 hedge funds were long Horizon Technology Finance Corporation (NASDAQ:HRZN), up from 1 fund in the prior quarter. Two Sigma Advisors is the biggest stakeholder of the company, with 166,497 shares worth $2.65 million.
4. Lloyds Banking Group plc (NYSE:LYG)
Number of Hedge Fund Holders: 7
Share Price as of March 28: $2.53
Dividend Yield as of March 28: 4.21%
Lloyds Banking Group plc (NYSE:LYG) is a London-based provider of banking and financial services in the United Kingdom. The company specializes in retail and commercial banking, insurance, and wealth management. Lloyds Banking Group plc (NYSE:LYG)’s dividend yield on March 28 came in at 4.21%.
On February 24, Lloyds Banking Group plc (NYSE:LYG) reported FY21 GAAP EPS of £0.075. The total income of £37.44 billion increased 28% year-over-year. The company also announced plans for an ordinary share buyback of up to £2 billion, which is expected to be completed by 31 December 2022.
JPMorgan analyst Raul Sinha reiterated an Overweight rating on Lloyds Banking Group plc (NYSE:LYG) on March 14, but lowered the price target to £56 from £63.
Among the hedge funds tracked by Insider Monkey, 7 funds were bullish on Lloyds Banking Group plc (NYSE:LYG) at the end of Q4 2021, compared to 8 funds in the prior quarter. Ken Griffin’s Citadel Investment Group is a significant shareholder of the company, with more than 4 million shares worth $10.4 million.
Here is what Oakmark Funds has to say about Lloyds Banking Group plc (NYSE:LYG) in its Q3 2021 investor letter:
“Lloyds’ great return is partly the result of its exceptionally low starting price. Nevertheless, company fundamentals have also improved in part because of management’s conservative approach to reserving for loan losses as well as its decision at the beginning of the pandemic to suspend its program of returning excess capital to shareholders—a program it has since reinstated.”
3. Nomura Holdings, Inc. (NYSE:NMR)
Number of Hedge Fund Holders: 8
Share Price as of March 28: $4.43
Dividend Yield as of March 28: 4.68%
Nomura Holdings, Inc. (NYSE:NMR) was incorporated in 1925 and is headquartered in Tokyo, Japan. The company provides financial services to individuals, enterprises, financial institutions, and governments worldwide. The three segments at Nomura Holdings, Inc. (NYSE:NMR) include Retail, Asset Management, and Wholesale.
On April 27, 2021 Nomura Holdings, Inc. (NYSE:NMR) declared a $0.07 per share semi-annual cash dividend. The dividend was paid on December 1, to shareholders of record on September 30. The stock yields 4.68% as of March 28.
According to Insider Monkey’s Q4 data, 8 hedge funds were bullish on Nomura Holdings, Inc. (NYSE:NMR), up from 6 funds in the third quarter. LMR Partners is the biggest shareholder of the company, with 1.13 million shares worth close to $5 million.
2. Prospect Capital Corporation (NASDAQ:PSEC)
Number of Hedge Fund Holders: 9
Share Price as of March 28: $8.21
Dividend Yield as of March 28: 8.78%
Prospect Capital Corporation (NASDAQ:PSEC) is a New York-based business development company that invests in senior loans and mezzanine debt to middle-market companies and private equity sponsors. Prospect Capital Corporation (NASDAQ:PSEC)’s dividend yield on March 28 came in at 8.78%.
On February 8, Prospect Capital Corporation (NASDAQ:PSEC) reported its fourth quarter results. The company posted an EPS of $0.22, beating estimates by $0.05. The $175.38 million revenue also outperformed estimates by $11.62 million.
Prospect Capital Corporation (NASDAQ:PSEC) on February 22 declared a $0.06 per share monthly dividend. The dividend was paid on March 22, and the next payment is scheduled for April 20, for shareholders of record on March 29.
According to the Q4 database of Insider Monkey, 9 hedge funds placed long bets on Prospect Capital Corporation (NASDAQ:PSEC), compared to 7 funds in the prior quarter. McKinley Capital Management is a notable shareholder of the company, with 556,652 shares worth $4.6 million.
1. Armada Hoffler Properties, Inc. (NYSE:AHH)
Number of Hedge Fund Holders: 10
Share Price as of March 28: $14.55
Dividend Yield as of March 28: 4.67%
Armada Hoffler Properties, Inc. (NYSE:AHH) is a real estate investment trust that develops and manages office, retail, and multifamily properties located in the Mid-Atlantic and Southeastern United States. The stock yields 4.67% as of March 28.
On February 23, Armada Hoffler Properties, Inc. (NYSE:AHH) declared a quarterly per share dividend of $0.17, in line with previous. The dividend will be paid on April 7, to shareholders of record on March 30.
The company published its Q4 results on February 10, announcing an FFO of $0.27, exceeding estimates by $0.01. Revenue for the period reached $69.92 million, outperforming estimates by $20.3 million. Armada Hoffler Properties, Inc. (NYSE:AHH)’s 2022 full-year normalized FFO guidance came in at $1.11 to $1.15 per diluted share, compared to a $1.11 market consensus.
Among the hedge funds tracked by Insider Monkey, 10 funds were long Armada Hoffler Properties, Inc. (NYSE:AHH) at the end of the fourth quarter, with collective stakes exceeding $49 million. Renaissance Technologies held the biggest stake in the company, with 1.9 million shares worth $29.1 million.
Here is what Singular Research has to say about Armada Hoffler Properties, Inc. (NYSE:AHH) in its Q3 2021 investor letter:
“For the month, we initiated coverage on AHH. AHH is a self-managed REIT with four decades of experience in developing, acquiring, and managing high-quality office, retail, and multi-family properties across the Mid-Atlantic and Southeastern regions of the U.S. AHH is an incredibly well-managed REIT that trades well below their peers
You can also take a look at 10 Penny Stocks with Upcoming Growth Catalysts and 10 Monthly Dividend Stocks with Over 6% Yield.
