In this article, we will be taking a look at 5 cheap dividend stocks with payout ratio under 40%. To read our detailed analysis of dividend investing, you can go directly to see the 10 Cheap Dividend Stocks with Payout Ratio Under 40%.
5. U.S. Bancorp (NYSE: USB)
Number of Hedge Fund Holders: 41
Dividend Yield: 2.88%
Payout Ratio: 35.6%
U.S. Bancorp (NYSE: USB) is a financial services holding company based in Minneapolis. The company ranks 5th on our list of cheap dividend stocks with payout ratio under 40%. It operates through its Corporate and Commercial Banking, Consumer and Business Banking, Wealth Management and Investment Services, Payment Services, and Treasury and Corporate Support segments.
Barclays raised its price target on shares of U.S. Bancorp (NYSE: USB) this July from $65 to $68. The firm also reiterated an Overweight rating on the stock.
In the second quarter of 2021, U.S. Bancorp (NYSE: USB) had an EPS of $1.28, beating estimates by $0.15. The company’s revenue was $5.76 billion, beating estimates by $136.74 million. U.S. Bancorp (NYSE: USB) has gained 13.96% in the past 6 months and 26.41% year to date.
By the end of the second quarter of 2021, 41 hedge funds out of the 873 tracked by Insider Monkey held stakes in U.S. Bancorp (NYSE: USB) worth roughly $8.3 billion. This is compared to 43 hedge funds in the previous quarter with a total stake value of approximately $8.3 billion.
4. Archer-Daniels-Midland Company (NYSE: ADM)
Number of Hedge Fund Holders: 41
Dividend Yield: 2.44%
Payout Ratio: 35.5%
Archer-Daniels-Midland Company (NYSE: ADM), a food processing company, is next on our list of cheap dividend stocks with payout ratio under 40%. The multinational company is based in Chicago, and ranks 4th on our list.
Jefferies began coverage of Archer-Daniels-Midland Company (NYSE: ADM) shares this July with a Hold rating and a $55 price target.
In the second quarter of 2021, Archer-Daniels-Midland Company (NYSE: ADM) had an EPS of $1.33, beating estimates by $0.30. The company’s revenue was $22.93 billion, up 40.81% year over year and beating estimates by $4.59 billion. Archer-Daniels-Midland Company (NYSE: ADM) has gained 5.71% in the past 6 months and 21.46% year to date.
By the end of the second quarter of 2021, 41 hedge funds out of the 873 tracked by Insider Monkey held stakes in Archer-Daniels-Midland Company (NYSE: ADM) worth roughly $837 million. This is compared to 34 hedge funds in the previous quarter with a total stake value of approximately $696 million.
3. Brookline Bancorp, Inc. (NASDAQ: BRKL)
Number of Hedge Fund Holders: 10
Dividend Yield: 3.22%
Payout Ratio: 35.5%
Brookline Bancorp, Inc. (NASDAQ: BRKL), yet another bank holding company, is up next on our list of cheap dividend stocks with payout ratio under 40%. This is the bank holding company for Brookline Bank, and ranks 3rd on our list. It offers a range of financial products and services like non-interest-bearing demand checking, NOW, savings, and money market accounts.
Piper Sandler upgraded shares of Brookline Bancorp, Inc. (NASDAQ: BRKL) from Neutral to Overweight just this July. The firm also raised its price target on the stock from $17 to $17.50.
In the second quarter of 2021, Brookline Bancorp, Inc. (NASDAQ: BRKL) had an EPS of $0.40, beating estimates by $0.09. The company’s revenue was $77.02 million, up 9.21% year over year and beating estimates by $2.36 million. Brookline Bancorp, Inc. (NASDAQ: BRKL) has gained 2.34% in the past 6 months and 23.96% year to date.
By the end of the second quarter of 2021, 10 hedge funds out of the 873 tracked by Insider Monkey held stakes in Brookline Bancorp, Inc. (NASDAQ: BRKL) worth roughly $44 million. This is compared to 9 hedge funds in the previous quarter with a total stake value of approximately $47 million.
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.
1. Value Line, Inc. (NASDAQ: VALU)
Number of Hedge Fund Holders: 2
Dividend Yield: 1.10%
Payout Ratio: 35%
Value Line, Inc. (NASDAQ: VALU) is a financial services company that produces and sells investment periodicals and related publications primarily in the US. The company ranks 1st on our list of cheap dividend stocks with payout ratio under 40%.
In the second quarter of 2021, Value Line, Inc. (NASDAQ: VALU) had an EPS of $0.64, beating the previous quarter’s EPS of $0.63. The company’s revenue was $1.59 million, up 18.62% year over year and beating the previous quarter’s revenue of $1.19 million. Value Line, Inc. (NASDAQ: VALU) has gained 28.21% in the past 6 months and 21.56% year to date.
By the end of the second quarter of 2021, 2 hedge funds out of the 873 tracked by Insider Monkey held stakes in Value Line, Inc. (NASDAQ: VALU) worth roughly $2.6 million. This is compared to 2 hedge funds in the previous quarter with a total stake value of approximately $2.4 million.
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