This article presents an overview of the 5 Cheap High Dividend Stocks To Invest In Now. For a detailed overview of the 15 such stocks read our article, 13 Cheap High Dividend Stocks To Invest In Now.
5. Rio Tinto plc ADR Common Stock (NYSE:RIO)
Number of Hedge Fund Investors: 34
Rio Tinto plc ADR Common Stock (NYSE:RIO) is one of the biggest mining companies in the world. But the stock is trading in the red for quite some time now amid lower demand from China and headwinds in the iron ore industry.
4. Energy Transfer LP Unit (NYSE:ET)
Number of Hedge Fund Investors: 34
Energy Transfer LP Unit (NYSE:ET) ranks fourth in our list of the cheap high dividend stocks hedge funds like. The stock has gained about 23% over the past one year. Its PE ratio is still under 15.
Of the 933 hedge funds tracked by Insider Monkey, 34 hedge funds reported owning stake in Energy Transfer LP Unit (NYSE:ET). The most notable stake in Energy Transfer LP Unit (NYSE:ET) is owned by David Abrams’ Abrams Capital Management which owns a $246 million stake in Energy Transfer LP Unit (NYSE:ET).
Silver Beech Capital made the following regarding Energy Transfer LP (NYSE:ET) in its fourth quarter 2023 investor letter:
Energy Transfer LP (NYSE:ET) owns and operates the largest and most balanced collection of energy infrastructure assets in the United States. ET’s assets include 125,000 miles of oil and natural gas pipelines, export facilities on both the Gulf Coast and East Coast, and more than 1 million barrels per day of natural gas liquid fractionation capacity. ET accounts for 20% of worldwide natural gas liquid exports. Further, ET is uniquely connected to every major hydrocarbon basin in the United States.
By assembling energy infrastructure to gather, process, transport, and store hydrocarbons, ET connects exploration and production companies (“E&Ps”) with downstream end users such as gas stations, utilities, and export facilities. As an end-to-end midstream solution, ET enables its customers to focus on their portion of the value chain without the burden of significant but essential midstream logistics. ET’s services thus add tremendous value to all constituents of the energy marketplace.
Though natural gas is a relatively clean source of fuel, restrictive federal and state regulations and other permissions severely restrict the building of natural gas pipelines and other infrastructure in North America that would help facilitate abundant hydrocarbon production. Pipelines are by far the cheapest and greenest method of transporting hydrocarbons; pipelines reduce emissions from truck transport and reduce congestion on highways, rail, and shipping routes…” (Click here to read the full text)
3. Vale SA (NYSE:VALE)
Number of Hedge Fund Investors: 34
Brazilian metals and mining giant Vale SA (NYSE:VALE) is a high dividend stock trading at low earnings multiples as of April 5. Vale SA (NYSE:VALE) is currently struggling amid declining iron ore prices and China property slump. Vale SA’s (NYSE:VALE) dividend is not among the safest out there, but yield and Vale SA’s (NYSE:VALE) size in addition to long-term growth catalysts make it an attractive stock.
A total of 34 hedge funds tracked by Insider Monkey had stakes in Vale SA (NYSE:VALE) as of the end of the last quarter.
2. Petroleo Brasileiro ADR Reptg 2 Ord Shs (NYSE:PBR)
Number of Hedge Fund Investors: 36
Brazilian energy company Petroleo Brasileiro ADR Reptg 2 Ord Shs (NYSE:PBR) almost always makes it to our lists of high dividend stocks with attractive PE ratios liked by hedge funds. The stock is facing headwinds amid government interference and uncertainty around dividend policies but bulls believe with over $50 billion in adjusted EBITDA and $30 billion in FCF, Petroleo Brasileiro ADR Reptg 2 Ord Shs (NYSE:PBR) is still a buy.
1. Altria Group Inc (NYSE:MO)
Number of Hedge Fund Investors: 42
Altria Group Inc (NYSE:MO) is one of the highest-yielding dividend stocks out there. Altria Group Inc (NYSE:MO) recently decided to return more value to shareholders by selling part of its stake in Anheuser-Busch InBev (BUD).
A total of 42 hedge funds tracked by Insider Monkey reported having stakes in Altria Group Inc (NYSE:MO) as of the end of the fourth quarter of 2023.
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