5 Cheap DRIP Stocks To Buy Now

2. Citigroup Inc. (NYSE:C)

P/E Ratio as of January 25: 7.30
Share Price as of January 25: $51.69

Citigroup Inc. (NYSE:C) is an American multinational investment bank and financial services company, headquartered in New York. The company’s DRIP program allows shareholders to reinvest dividends or make optional cash payments.

On January 12, Citigroup Inc. (NYSE:C) declared a quarterly dividend of $0.51 per share, consistent with its previous dividend. The stock has a dividend yield of 3.95%, as of January 25.

In its recently announced Q4 earnings, Citigroup Inc. (NYSE:C) posted revenue of $18 billion, which showed a 5.8% growth from the same period last year. During the quarter, the company paid approximately $1 billion to shareholders, which takes its payout ratio to a healthy 44%.

At the end of Q3 2022, 85 hedge funds tracked by Insider Monkey reported owning stakes in Citigroup Inc. (NYSE:C), growing from 82 in the previous quarter. These stakes are worth over $7.1 billion collectively.

Diamond Hill Capital mentioned Citigroup Inc. (NYSE:C) in its Q1 2022 investor letter. Here is what the firm has to say:

“Shares of Citigroup declined in the quarter as investors became increasingly negative on capital markets activity. The company is also continuing to divest certain consumer banking geographies which may be dilutive to earnings in the near term.”