We recently compiled a list of the 13 Cheap High Dividend Stocks To Invest In Now. In this article, we are going to take a look at where Shell plc (NYSE:SHEL) stands against the other cheap high dividend stocks.
According to Deutsche Bank Wealth Management, the global economy in 2025 is expected to face some tough challenges, with growth forecasts looking modest – the US GDP at 2.0%, the Eurozone at 0.9%, and China at 4.2%. Inflation may persist due to higher fiscal spending and potential tariff hikes, which could limit central banks’ ability to lower interest rates. This could in turn lead to more market volatility. Productivity has been growing slowly, and in some cases, it has even declined, affecting long-term living standards. However, AI and new technologies could help drive productivity higher, though it will take time to see noticeable results.
Despite these challenges, 2025 will be about navigating turbulent times, with a clear gap between the high-tech, high-productivity US economy and Europe, which is lagging behind. Policy focus is shifting from monetary to fiscal, with China taking the lead on new initiatives. Stocks, especially in the United States, remain a strong opportunity for growth, while European equities offer potential despite economic struggles.
In Q4 2024, S&P Global reported that US domestic stocks saw a net dividend increase of $11.7 billion, which was lower than the $13.7 billion increase in the same quarter last year. Overall, dividend increases totaled $14.2 billion for the quarter, which was down from $17.5 billion in Q4 2023. For the entire year, dividends grew by $53.3 billion, a significant jump from the previous year’s $36.5 billion. On a per-share basis, the broader market’s dividends hit a record, growing by 6% to $19.81 per share. In Q4 last year, there were 635 dividend increases, which is a 10.2% decrease compared to the 707 increases in Q4 2023.
Over the past 12 months, total dividend increases amounted to $71.4 billion, up from $65.1 billion in the previous year. Interestingly, the number of companies cutting dividends decreased by 19.5% in Q4, with only 33 companies lowering their payouts, compared to 41 the year before. Here, we discuss some of the best cheap high dividend stocks.
Our Methodology
For this article, we used the Finviz stock screener to filter out stocks with dividend yields over 3% and P/E ratios under 15. We focused on picking stocks with a consistent record of paying dividends, offering dividend growth, and being financially stable to steer clear of yield traps. The list below is ranked in ascending order of the dividend yield as of February 17. We have also mentioned the P/E ratios and hedge fund sentiment as of Q3 2024.
At Insider Monkey, we are obsessed with 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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here)
A gas refinery lit up against the night sky, showing the scale of the company’s petrochemical operations.
Shell plc (NYSE:SHEL)
Number of Hedge Fund Holders: 48
Dividend Yield as of February 17: 4.27%
P/E Ratio: 13.31
Shell plc (NYSE:SHEL), a British multinational energy giant, ranks 6th on our list of the best dividend stocks. The company expects global demand for liquefied natural gas to rise significantly in the coming years, while natural gas will see slower growth and oil demand could peak by 2030. Shell outlined three possible futures – Surge, where AI-driven productivity fuels higher energy demand, pushing LNG supply beyond 700 MTPA after 2040; Archipelagos, where countries prioritize their own interests over global cooperation on AI and renewable energy; and Horizon, where the world reaches net-zero emissions by 2050, keeping global warming below 1.5°C. In this last scenario, LNG demand peaks in the early 2030s, and natural gas declines soon after. Shell plc (NYSE:SHEL) also points to the rise of electric vehicles as a major reason oil demand may peak by 2030.
In Q4 2024, Shell announced a 4% higher dividend alongside a $3.5 billion share repurchase plan, continuing its streak of at least $3 billion in buybacks for the 13th consecutive quarter. On January 30, the company declared a quarterly dividend of $0.716 per ADS, an increase from the previous $0.688. The dividend will be paid on March 24 to shareholders on record as of February 14.
According to Insider Monkey’s Q3 data, Shell plc (NYSE:SHEL) was held by 48 hedge fund portfolios, compared to 49 in the earlier quarter. Ken Fisher’s Fisher Asset Management was the largest stakeholder in the company, with 24.5 million shares worth $1.6 billion.
Overall SHEL ranks 6th on our list of the cheap high dividend stocks to invest in now. While we acknowledge the potential of SHEL as an investment, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than SHEL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.
Disclosure: None. This article is originally published at Insider Monkey.
