Top 5 Dividend Paying Stocks To Buy Under $50

1. Citigroup (NYSE:C)

Hedge Funds: 91
Total Hedge Fund Holdings: $5.5 billion
Dividend Yield: 3.5%
Price (at the time of writing): $58.93

Citigroup’s shares aren’t too far from $50 and we believe financial stocks offer some of the highest upside potentials in the market right now, so we made an exception. Financial stocks are definitely contrarian investments at the moment. If Citigroup’s stock price goes back to its 2020 high, Citigroup investors will generate more than 35% gains from these levels.

Generation PMCA talked about Citigroup in its Q3 investor letter. Here is what they said:

“Citigroup’s operations span more than 160 countries. Faced with record low interest rates, rising loss provisions, and subdued lending, the financial sector has been one of the worst performing groups year-to-date. However, earnings appear to have stabilized for the major banks. The company had its own internal issues too, having to pay significant fines for regulatory deficiencies. They are spending over $1 billion on compliance matters. With these issues being addressed and the company’s dominant network intact, it is well positioned to benefit from a global economic recovery. We have assumed a gradual recovery of earnings to former highs over the next few years. Return on tangible common equity should exceed 10% by 22, implying earnings per share above $8. While shares have risen recently, they still trade at only 6x our 2-year-out earnings estimate and yield just under 4%.”

Please also see 10 best dividend stocks to buy now and 15 best technology stocks to buy now.

Disclosure: None.