Is Amcor plc (AMCR) The Best Low Priced Dividend Stock to Buy Now?

We recently published a list of 15 Best Low Priced Dividend Stocks to Buy Now. In this article, we are going to take a look at where Amcor plc (NYSE:AMCR) stands against other best low priced dividend stocks to buy now.

Concerns over an escalating trade war and rising geopolitical tensions have triggered waves of selling in stock markets over the past week. The United States has been at the center of these developments, as President Donald Trump intensified his rhetoric on trade tariffs, which are expected to raise costs for both consumers and businesses domestically and abroad.

Since reaching a peak in mid-February, the broader market—an index tracking America’s largest companies—has declined by 7.3% as of March 17 and is down 3% for 2025. Meanwhile, the Nasdaq, which focuses on technology stocks, has fallen 7.2% this year. As a result, the US market has now dropped below its levels prior to the so-called “Trump bump” in November, when Trump’s election victory initially drove markets higher.

READ ALSO: 10 Defensive Dividend Stocks To Buy During Market Sell Off

The year 2025 has been marked by significant events, ranging from corporate earnings and guidance updates to concerns surrounding DeepSeek and the fluctuating stance on tariffs by President Donald Trump. These developments have contributed to heightened market volatility, creating uncertainty for investors. A report by Morningstar suggested that investors should prioritize fundamental analysis, adopt a long-term perspective, and remain mindful of valuations. In line with this approach, the firm’s analysts continue to assess the long-term fundamentals shaping sector outlooks and evaluate the key assumptions driving valuation models. Given the ongoing uncertainty surrounding the potential implementation of tariffs, adjustments to projections and valuations will be made once there is greater clarity on the extent of the tariffs and their expected duration.

Dividend stocks have gained popularity during market downturns, as they offer shareholders a steady source of income. Following a period where growth stocks dominated, interest in dividend investing has been on the rise. According to a report by Franklin Templeton, US-listed dividend-focused exchange-traded funds (ETFs) saw a significant increase in investor interest, with average monthly net inflows reaching nearly $3.3 billion in the six months leading up to January 31, 2025. This marks a sharp contrast to the $107 million recorded during the same period the previous year.

Amid an uncertain global economic environment, investors are gravitating toward more stable assets to create balanced portfolios. Dividend stocks, particularly those backed by strong fundamentals, are known for generating consistent and predictable cash flows. Since these cash flows play a crucial role in equity valuation models, determining the intrinsic or fair value of dividend-paying stocks is generally more straightforward than valuing growth stocks.

The Dividend Aristocrat Index, which tracks the performance of companies with at least 25 consecutive years of dividend growth, has surged by over 3% in 2025, so far, compared with a nearly 3% decline of the broader market, as of the close of March 17.

Our Methodology

For this list, we screened for dividend stocks with forward P/E ratios of less than 21 and share prices below $50, as of March 17. From the group, we picked 15 companies for their robust financial health, consistent dividend track records, and stable balance sheets, making them attractive options for income-focused investors. The stocks are ranked according to their share prices, as of the close of March 17.

At Insider Monkey, we are obsessed with hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

Is Amcor plc (AMCR) The Best Low Priced Dividend Stock to Buy Now?

An automated assembly line producing a variety of packaging products.

Amcor plc (NYSE:AMCR)

Share Price as of the Close of March 17: $9.85

Forward P/E Ratio as of March 17: 11.21

Amcor plc (NYSE:AMCR) is an Australian packaging company that offers a wide range of related products for different industries. The company is making steady progress on three key priorities: strengthening its core business, completing the necessary steps for its planned merger with Berry Global, and preparing for the integration process. The merger is expected to drive significant financial benefits, with cash earnings per share projected to rise by more than 35% and annual cash flow surpassing $3 billion. The company has also identified $650 million in total cost savings and financial synergies.

Looking ahead, management reaffirmed its full-year outlook, anticipating comparable constant currency growth between 3% and 8%. In addition, Amcor plc (NYSE:AMCR) remains confident in maintaining a leverage ratio of 3x or lower by the end of fiscal 2025 while generating adjusted free cash flow between $900 million and $1 billion. Strong insider buying over the past six months reflects confidence in the company’s growth trajectory.

In fiscal Q2 2025, Amcor plc (NYSE:AMCR) reported revenue of $3.24 billion, representing a slight 0.3% decline from the previous year. However, volumes increased by 2.3% year-over-year, building on the 1.6% growth recorded in the first quarter and marking four consecutive quarters of sequential volume gains. On a comparable constant currency basis, adjusted EBIT grew approximately 5% year-over-year to reach $363 million.

For the first half of fiscal 2025, Amcor plc (NYSE:AMCR) generated an operating cash flow of $228 million, up from $159 million in the same period the previous year. The company currently pays a quarterly dividend of $0.1275 per share, offering a dividend yield of 5.19% as of March 17. With 41 consecutive years of dividend increases, it remains one of the best low priced stocks that pay dividends.

Overall, AMCR ranks 2nd on our list of best low priced dividend stocks to buy now. While we acknowledge the potential of AMCR as an investment, our conviction lies in the belief that some deeply undervalued dividend stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued dividend stock that is more promising than AMCR but that trades at 10 times its earnings and grows its earnings at double digit rates annually, check out our report about the dirt cheap dividend stock.

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Disclosure: None. This article is originally published at Insider Monkey.