5 Cheap Dividend Stocks with Payout Ratio Under 40%

2. Cathay General Bancorp (NASDAQ: CATY)

Number of Hedge Fund Holders: 13
Dividend Yield: 3.08%

Payout Ratio: 35.1%

Cathay General Bancorp (NASDAQ: CATY), the bank holding company for Cathay Bank, is based in California and ranks 2nd on our list of cheap dividend stocks with payout ratio under 40%. The company offers a range of financial services and products and was founded in 1990.

Truist has a Hold rating on shares of Cathay General Bancorp (NASDAQ: CATY) as of this June, alongside a raised price target of $41, compared to the previous $38 target.

In the second quarter of 2021, Cathay General Bancorp (NASDAQ: CATY) had an EPS of $0.97, beating estimates by $0.14. The company’s revenue was $160.58 million, up 7% year over year and beating estimates by $4.78 million. Cathay General Bancorp (NASDAQ: CATY) has gained 2.08% in the past 6 months and 26.01% year to date.

By the end of the second quarter of 2021, 13 hedge funds out of the 873 tracked by Insider Monkey held stakes in Cathay General Bancorp (NASDAQ: CATY) worth roughly $110 million. This is compared to 12 hedge funds in the previous quarter with a total stake value of approximately $130 million.