11 52-Week Low Dividend Stocks To Consider
In this article, we discuss 11 52-week low dividend stocks to consider. You can skip our detailed analysis of dividend stocks and their performance this year, and go directly to read 5 52-Week Low Dividend Stocks To Consider.
The S&P 500 entered the bull market territory earlier this year. It has gained 17% year-to-date from its lowest point in October 2022. The rebound in stocks has increased investors' confidence in the stock market's future outlook as they are also investing more actively.
This year's investment trend has pushed tech stocks into the spotlight because of the increasing fascination with artificial intelligence (AI). The S&P 500 Dividend Aristocrat Index, which tracks the performance of companies with 25 consecutive years of dividend growth, has returned 5.34% since the start of the year, underperforming the broader market by a wide margin.
That said, dividend stocks are regaining attention once more. Refinitiv Lipper reported that the ProShares S&P 500 Dividend Aristocrats ETF, which follows companies increasing dividends for over 25 years, saw a strong increase of $33 million in investments over a two-week period ending on July 19. This was its biggest gain in two weeks since January.
Morgan Stanley has also given a positive outlook on dividend stocks as these equities could enhance overall gains and reduce volatility in a portfolio. The firm's report highlighted that there is a possibility of lower equity returns and market uncertainty in the coming years, which could make dividends a bigger part of the overall stock market gains. Between 2013 and 2022, around 17% of the S&P 500 Index's total returns were from dividends. However, over a long period of time, starting from the 1930s, dividends represented 37% of the market’s overall returns.
Also read: Dividend Growth Stocks: 25 Aristocrats
Dividend stocks remain on investors’ radars because even if these stocks don't do as well for a while, there's nothing like steady dividend payments, especially during turbulent times. That's why investors choose companies that regularly increase their dividend payments over the years, showing their strong commitment to taking care of shareholders. The Procter & Gamble Company (NYSE:PG), Colgate-Palmolive Company (NYSE:CL), and PepsiCo, Inc. (NASDAQ:PEP) are some companies that have raised their dividends for decades and have strong cash flows to increase their payouts in the future as well.
Photo by nick chong on Unsplash
Our Methodology:
For this article, we examined the list of stocks that hit 52-week lows on Yahoo Finance and picked dividend stocks from that list. Then, we used Insider Monkey's exclusive database of 943 leading hedge funds to get the hedge fund sentiment for each stock. Finally, we narrowed our list to 11 stocks that had the highest number of hedge fund investors, as tracked by Insider Monkey in Q1 2023.
11. Spire Inc. (NYSE:SR)
Number of Hedge Fund Holders: 12
1-Year Share Price Decline as of August 14: 22.7%
Spire Inc. (NYSE:SR) is a Missouri-based utility holding company that focuses on natural gas distribution and related services. In the past 12 months, the stock has fallen by 22.7% and is trading at a P/E multiple of 12.6x.
On August 2, Spire Inc. (NYSE:SR) declared a quarterly dividend of $0.72 per share, which was in line with its previous dividend. In 2022, the company stretched its dividend growth streak to 20 years, which makes it one of the best 52-week low stocks to buy. Other dividend stocks that are grabbing investors' attention include The Procter & Gamble Company (NYSE:PG), Colgate-Palmolive Company (NYSE:CL), and PepsiCo, Inc. (NASDAQ:PEP).
In addition to its strong dividend policy, Spire Inc. (NYSE:SR) also showed a strong cash position in its fiscal Q3 2023. For the nine months that ended June 30, the company's operating cash flow came in at $404.1 million, up from $204.6 million during the same period last year.
At the end of Q1 2023, 12 hedge funds tracked by Insider Monkey reported having stakes in Spire Inc. (NYSE:SR), compared with 14 in the previous quarter. The collective value of these stakes is over $32.5 million. Among these hedge funds, Citadel Investment Group was the company's leading stakeholder in Q1.
10. UGI Corporation (NYSE:UGI)
Number of Hedge Fund Holders: 20
1-Year Share Price Decline as of August 14: 43.6%
UGI Corporation (NYSE:UGI) is an American natural gas distribution company that also provides a wide range of related services to its consumers. The company holds one of the strongest dividend histories in the market, making uninterrupted dividend payments to shareholders for the past 139 years. Moreover, it also has a 39-year run of raising its dividends, which makes it one of the best 52-week low stocks to consider.
UGI Corporation (NYSE:UGI) currently pays a quarterly dividend of $0.375 per share and has a dividend yield of 6.38%, as of August 14.
The number of hedge funds tracked by Insider Monkey owning stakes in UGI Corporation (NYSE:UGI) stood at 20 at the end of Q1 2023, the same as in the previous quarter. These stakes have a collective value of nearly $70 million. With over 6.6 million shares, First Eagle Investment Management was the company's largest stakeholder in Q1.
9. Clearway Energy, Inc. (NYSE:CWEN)
Number of Hedge Fund Holders: 25
1-Year Share Price Decline as of August 14: 37.1%
Clearway Energy, Inc. (NYSE:CWEN) is a New Jersey-based renewable energy company that focuses on the development, ownership, and operation of clean energy assets. The company reported strong earnings in the second quarter of 2023, posting revenue of $406 million. The revenue showed a 10.3% growth from the same period last year. Its operating cash flow for the quarter came in at $134 million and its distributable cash flow stood at $137 million.
In the past 12 months, Clearway Energy, Inc. (NYSE:CWEN)'s share price declined by 35.8% and its year-to-date it has fallen by 21.1%.
Though Clearway Energy, Inc. (NYSE:CWEN) has produced negative returns for shareholders in the past year, its dividend policy remained stable. On May 30, the company declared a quarterly dividend of $0.3818 per share, having raised it by 2%. This marked its 12th consecutive year of dividend growth, making it one of the best 52-week low stocks to consider. The stock's dividend yield on August 14 came in at 6.18%.
As of the close of Q1 2023, 25 hedge funds in Insider Monkey's database reported having stakes in Clearway Energy, Inc. (NYSE:CWEN), worth collectively $106.1 million.
8. Campbell Soup Company (NYSE:CPB)
Number of Hedge Fund Holders: 26
1-Year Share Price Decline as of August 14: 12.61%
Campbell Soup Company (NYSE:CPB) is a multinational food company that is primarily known for its production of soups and other food products. The company operates in the consumer packaged goods industry and offers a wide range of food and beverage products.
In fiscal Q3 2023, Campbell Soup Company (NYSE:CPB) reported revenue of $2.23 billion, which showed a 4.7% growth from the same period last year. The company's operating cash flow for the quarter came in at over $918 million and it returned $336 million to shareholders through dividends. It is among the best 52-week low stocks to consider.
Campbell Soup Company (NYSE:CPB) currently pays a quarterly dividend of $0.37 per share and has a dividend yield of 3.39%, as of August 14.
At the end of March 2023, 26 hedge funds tracked by Insider Monkey presented a bullish stance on Campbell Soup Company (NYSE:CPB), up from 24 a quarter earlier. The stakes owned by these funds have a collective value of over $386.4 million.
7. Eversource Energy (NYSE:ES)
Number of Hedge Fund Holders: 29
1-Year Share Price Decline as of August 14: 29.03%
Eversource Energy (NYSE:ES) is a diversified energy company that operates in the utility sector, providing electric and natural gas services to customers in several states. The stock's 12-month returns came in at a negative of 29.03% and since the start of 2023, it declined by 20.55%.
Eversource Energy (NYSE:ES), one of the best 52-week low stocks to consider, currently pays a quarterly dividend of $0.675 per share. The company maintains a 23-year streak of consistent dividend growth. The stock's dividend yield on August 14 came in at 4.08%.
The number of hedge funds in Insider Monkey's database owning stakes in Eversource Energy (NYSE:ES) stood at 29 at the end of Q1 2023, compared with 26 in the previous quarter. The overall value of these stakes is roughly $437 million.
6. Conagra Brands, Inc. (NYSE:CAG)
Number of Hedge Fund Holders: 34
1-Year Share Price Decline as of August 14: 11.07%
Conagra Brands, Inc. (NYSE:CAG) is next on our list of the best 52-week low stocks. The American food company declared a quarterly dividend of $0.35 per share on July 27, growing it by 6.1% from its previous dividend. This marked the company's fourth consecutive year of dividend growth. As of August 14, the stock has a dividend yield of 4.52%.
The Procter & Gamble Company (NYSE:PG), Colgate-Palmolive Company (NYSE:CL), and PepsiCo, Inc. (NASDAQ:PEP) are some other dividend stocks to consider because of their long dividend growth streaks and strong credentials.
According to Insider Monkey's database of Q1 2023, 34 hedge funds owned investments in Conagra Brands, Inc. (NYSE:CAG), worth over $268.3 million. Two Sigma Advisors was one of the company's leading stakeholders, owning a CAG stake worth roughly $60 million.
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Disclosure. None. 11 52-Week Low Dividend Stocks To Consider is originally published on Insider Monkey.
