5 Dividend Stocks That Are Too Cheap To Ignore

1. Invitation Homes Inc. (NYSE:INVH)

Share Price as of October 10: $32.3

Invitation Homes Inc. (NYSE:INVH) is a Texas-based real estate investment trust company that owns single-family rental homes in the US. In October, Barclays maintained an Overweight rating on the stock with a $41 price target as the single-family rental sector has outperformed this year. The firm also sees more durable rent growth in the sector in late 2022.

Invitation Homes Inc. (NYSE:INVH) has been raising its dividends consistently for the past four years. In the last three years, it raised its payouts at a CAGR of 18%. It currently pays a quarterly dividend of $0.22 per share and has a dividend yield of 2.72%, as of October 10.

The number of hedge funds tracked by Insider Monkey owning stakes in Invitation Homes Inc. (NYSE:INVH) stood at 27 in Q2 2022, falling from 33 in the previous quarter. The total value of these stakes is over $452.4 million. Jeffrey Furber and Israel Englander were the company’s most prominent stakeholders in Q2.

Baron Funds mentioned Invitation Homes Inc. (NYSE:INVH) in its Q2 2022 investor letter. Here is what the firm has to say:

“Single-Family Rental REITs (7.8%): We are bullish about the Fund’s investments in single-family rental REIT Invitation Homes, Inc. (NYSE:INVH). Demand conditions for rental homes are attractive due to a decline in home purchase affordability, the propensity to rent, and the strong desire by households to rent homes in suburbs rather than rent apartments in cities. Regarding new construction activity, there is a limited supply of single-family rental homes in the U.S. housing market, increasingly constrained by rising construction costs. Limited inventory combined with strong demand is leading to robust rent growth. Invitation Homes has an opportunity to partially offset inflation given that in-place annual leases are significantly below market rents. Valuations are compelling at less than $400,000 per home and at 5% capitalization rates.”

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