5 Dividend Stocks For Beginners

3. Deluxe Corporation (NYSE:DLX)

Dividend Yield as of May 6: 4.50%

Number of Hedge Fund Holders: 12

Deluxe Corporation (NYSE:DLX) operates through four segments – Payments, Cloud Solutions, Promotional Solutions, and Checks, offering technology solutions to small and enterprise-level businesses and financial institutions in the United States, Canada, Australia, South America, and Europe.

On May 5, Deluxe Corporation (NYSE:DLX) declared a $0.30 per share quarterly dividend, in line with previous. The dividend is distributable on June 6, to shareholders of the company as of May 23. Deluxe Corporation (NYSE:DLX)’s dividend yield on May 6 came in at 4.50%. 

Deluxe Corporation (NYSE:DLX) announced its Q1 results on May 5, posting earnings per share of $1.05, beating estimates by $0.03. The revenue grew 26% from the prior-year quarter, reaching $556 million, surpassing market consensus by $23.87 million. 

Cowen analyst Lance Vitanza maintained an Outperform rating on Deluxe Corporation (NYSE:DLX) but lowered the price target on the shares to $42 from $50 on April 27. The analyst noted that revenue forecasts remain unchanged but he cut his profitability projections in 1H22 to reflect the rising inflationary pressures. He expects margins to improve later in the year and beyond as the company benefits from inherent operating leverage, the analyst added. 

Select Equity Group is the largest stakeholder of Deluxe Corporation (NYSE:DLX), with 1.5 million shares worth $49.2 million. Overall, 12 hedge funds were bullish on the stock at the end of December 2021.