Best Dividend Paying Stock Under $50 - Legit Internet Income

Best Dividend Paying Stock 2022

With the stock markets posting their worst performance since the Great Recession of 2008, the potential for a worldwide economic downturn is growing. Ned Davis Research claims that as of right now, there is a 98.1 percent risk of a global recession. Bloomberg claims that the only previous time the probability model produced comparable findings was during the 2008-2009 global financial crisis. 

Due to the present economic climate, investors are looking at alternative investment techniques to reduce risk.

To supplement their income, investors are increasingly drawn to dividend equities. Experts from all around the globe agree that dividend stocks are an effective tool for weathering the present economic uncertainty.

In an interview with CNN this past September, Titleist Asset Management co-chief investment manager Austin Graff expressed optimism about dividend investing. He said that the fundamentals and balance sheets of firms that pay dividends are so solid that their stock prices rise during periods of inflation. 

He said that dividend firms with a track record of consistent dividend increases are the best bet for investors because they can count on consistent free cash flow creation to cover their dividend payments.

Best Dividend Paying Stock

Our Methodology

As of September 30, the share values of the companies discussed here are less than $50. Compared to other investment alternatives, the track records of these firms' dividend growth and the strength of their balance sheets make them safe bets throughout the present economic downturn. Stocks are listed in ascending order from lowest share price to highest.

1. Star Group, L.P. (NYSE: SGU)

Share Price as of September 30: $8.25

American company Star Group, L.P. offers comprehensive energy services and focuses on the HVAC market for residential and commercial customers. The company's fiscal Q3 2022 sales were $440 million, an increase of 55% compared to the same quarter in the prior fiscal year. During the period under review, the business generated $74 million in operational cash flow and over $70 million in free cash flow.

Since 1996, investors of Star Group, L.P. (NYSE: SGU) have received dividend payments. The firm has increased its dividend payment every year for the last nine, with a compound annual growth rate (CAGR) of 6.78% during the past five years. The dividend yield for this stock as of September 30 was 7.39 percent.

Star Group, L.P. (NYSE: SGU) is on the minds of investors owing to its high dividend credentials, among some of the greatest dividend stocks such as The Coca-Cola Company (NYSE: K.O.), Exxon Mobil Corporation (NYSE: XOM), and Johnson & Johnson (NYSE: JNJ).

2. Kennedy-Wilson Holdings, Inc. (NYSE: K.W.)

Share Price as of September 30: $15.34

California-based real estate brokerage and management firm Kennedy-Wilson Holdings, Inc. targets underpriced commercial, multifamily, and residential properties in dynamic areas for expansion. The firm maintained its quarterly dividend of $0.24 per share, which it announced on August 3. For the last decade, the corporation has held a pattern of annual dividend increases. The dividend yield for the company was 6.26 percent as of September 30.

While Kennedy-Wilson Holdings, Inc. (NYSE: K.W.) fell short on several fronts in the second quarter of 2022, its sales of $136 million represented a 25.6% year-over-year increase. Cash flow from operations was $37.4 million, while free cash flow was $4.3 million. Cash and equivalents amounted to $460.6 million at the quarter's conclusion for business.

German investment bank Deutsche Bank reaffirmed its September Buy rating and $21 price target on Kennedy-Wilson Holdings, Inc. (NYSE: K.W.), citing its expanding sales and solid fundamentals.


3. KeyCorp (NYSE: KEY)

Share Price as of September 30: $16.03

Ohio-based KeyCorp offers investment management, financing, credit cards, and other consulting services. Wedbush began covering the stock in September, issuing an initial Neutral rating and setting a price target at $18. The company said it is well on its way to expanding to the levels it has set its sights on in a few key areas.

Results for KeyCorp (NYSE: KEY) were excellent in the second quarter of 2022. The GAAP EPS of $0.54 and the revenue of $1.8 billion produced by the corporation were better than expected by $0.03 and $30 million, respectively. Strong loan growth across commercial and consumer enterprises contributed to a 6% increase in revenue for the quarter compared to the same time in the prior year.

For the last 11 years, KeyCorp (NYSE: KEY) has maintained a steady dividend growth pattern. The firm is one of the finest dividend stocks under $50 because of its 16.72% dividend CAGR over the previous five years. As of September 30, the dividend yield was 4.86%, and the latest quarterly dividend payment was $0.195 per share.

Towards the end of the second quarter of 2022, 37 of the 38 hedge funds tracked by Insider Monkey owned shares in KeyCorp (NYSE: KEY). The aggregate value of these holdings is nearly $338.4 million. In Q2, Adage Capital Management made the largest investment in the firm, with holdings worth approximately $77 million.

4. Sierra Bancorp (NASDAQ: BSRR)

Share Price as of September 30: $20.05

Bank holding firm Sierra Bancorp (NASDAQ: BSRR), headquartered in California, offers retail and commercial banking services to consumers and businesses. Insider Monkey reports that at the end of the second quarter of 2022, six instead of three hedge funds had shares of the firm in their portfolios. Assets worth over $9.6 million held by these hedge firms are in danger.

Sierra Bancorp (NASDAQ: BSRR) reported sales of $37.02 million in Q2 2022, up 20.1% yearly. The company's financial position remained unchanged throughout the quarter, with $5 million in operational cash flow and $4.6 million in free cash flow. It had total assets of $2.28 billion as of June, including cash and cash equivalents of $161.8 million.

A quarterly dividend of $0.23 per share was issued on July 22 by Sierra Bancorp (NASDAQ: BSRR), marking the 94th consecutive quarterly dividend for the firm. After nine years of uninterrupted dividend increases, this stock has shown to be among the best in its class for investors looking to maximize their returns on investments of less than $50. The dividend yield of the shares as of September 30 was 4.96%.

5. Ames National Corporation (NASDAQ: ATLO)

Share Price as of September 30: $22.14

American financial services provider Ames National Corporation (NASDAQ: ATLO) operates as a bank holding company. Assets under management increased to $2.1 billion at the end of June 2022, up from $2 billion at the end of the previous year. More than $74.6 million was in cash and equivalents, while over $5.1 million was in other assets. In addition, operational cash flow for the year was $4.2 million, and free cash flow for the year was $3.

After the third quarter, investors in Ames National Corporation (NASDAQ: ATLO) received a dividend payment of $0.27 per share for a dividend yield of 4.80%. The firm has paid dividends without missing a beat for the last 11 years, and its dividend CAGR for the past five years is at 4.27 percent.

As at the ending the second quarter, Stadium Capital Management was the top shareholder in Ames National Corporation (NASDAQ: ATLO), with holdings valued at more than $6.2 million. Insider Monkey found that six hedge funds had invested over $12 million into the firm at the end of the second quarter.

6. Union Bankshares, Inc. (NASDAQ: UNB)

Share Price as of September 30: $22.29

Investors in retail and commercial banking services might look to Union Bankshares, Inc. (NASDAQ: UNB), a bank holding company headquartered in Vermont. With nine consecutive years of dividend increases, this firm is among our top picks for investors seeking a steady income stream. As of September 30, the dividend yield was 6.41%, thanks to a quarterly dividend payment of $0.35 per share.

Union Bankshares, Inc. (NASDAQ: UNB) had a steady cash balance in the second quarter of 2022. Cash flow from operations was $1.57 million, while free cash flow was $1.45 million. The company's net income increased from $2.4 million in the previous quarter to over $3 million. And with $9.7 million in sales, the company saw a 9 percent increase in profits from a year earlier.

7. STORE Capital Corporation (NYSE: STOR)

Share Price as of September 30: $31.29

Arizona-based real estate investment trust firm STORE Capital Corporation (NYSE: STOR) specializes in net lease solutions for middle-market real estate investing. When Evercore ISI first started covering the company in September, it did so with an Outperform rating and a $32 price target, up from $29.

The AFFO for the second quarter of 2022 for STORE Capital Corporation (NYSE: STOR) was $163.8 million, while the net income was $90.5 million. With a rise over the previous quarter's $160 million, the company's free cash flow was $167 million. It showed a 16.6 percent increase in earnings from the last year in the record $223.8 million in sales.

At the end of the second quarter of 2022, 22 hedge funds whose portfolios Insider Monkey analyzes had $422.7 million invested in STORE Capital Corporation (NYSE: STOR). Twenty-four hedge funds with roughly $748.2 million in assets under management had a position in the firm at the end of the preceding quarter.

Legit Internet Income Editors' Picks

👉How to make money on social media as an influencer | Legit Internet Income

👉How To Make Money Investing Online | Legit Internet Income

👉How to earn money as a copywriter | Legit Internet Income

Post a Comment