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11 Best High Dividend Stocks Under $50

·10 min read

In this article, we discuss the 11 best high dividend stocks under $50. You can skip our detailed analysis of dividend stocks and their returns, and go directly to read 5 Best High Dividend Stocks Under $50.

According to a report published by Harvard Business Review, the corporate sector paid over 50% of the cash dividends between 1977 and 1978. Historically, dividend stocks have performed somewhat better during times of financial trouble. In 2008, S&P 500 fell by a whopping 37%, while the S&P 500 Dividend Aristocrats index declined by just about 22%.

However, dividend payouts are not always guaranteed and depend on the current market conditions. But the companies that grow their dividends on regular basis tend to perform better than those who cut dividends, or in some cases, don’t pay dividends at all. According to a report published by Hartford Funds, from 1973 to 2020, the dividend growers’ annual average returns stood at 13.2%, compared with dividend eliminators’ average annual returns of 10.2% during the same time period. Similarly, companies with no dividend policy had an annual average return of 12.18% from 1973 to 2020.

This being said, after suffering a pandemic-related hiatus, financial markets are on the road to recovery. Many companies, who previously slashed their dividends, are restoring the dividend policy. Some of the most notable dividend stocks include The Coca-Cola Company (NYSE:KO), The Procter & Gamble Company (NYSE:PG), Exxon Mobil Corporation (NYSE:XOM), Lowe's Companies, Inc. (NYSE:LOW), and Johnson & Johnson (NYSE:JNJ). These companies have been paying dividends to shareholders for a long time now.

However, in this article, we will focus on the stocks with high dividends under $50.

Our Methodology:

Let's analyze our list of the best high dividend stocks under $50. The stocks mentioned below are currently traded under $50 and pay consistent dividends to shareholders while exhibiting strong growth potential. In addition to this, we took into account hedge fund sentiment, analysts’ ratings, long-term growth potential, and fundamentals while choosing these stocks.

11 Best High Dividend Stocks Under $50
11 Best High Dividend Stocks Under $50

pay attention to hedge fund sentiment while choosing stocks?

Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 86 percentage points since March 2017. Between March 2017 and July 2021, our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the S&P 500 ETF (SPY). Our stock picks outperformed the market by more than 86 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.

11 Best High Dividend Stocks Under $50

11. Brookfield Renewable Partners L.P. (NYSE:BEP)

Number of Hedge Fund Holders: 20

Dividend Yield: 3.12%

Share Price as of October 14: $39.00

Brookfield Renewable Partners L.P. (NYSE:BEP) is a Canadian limited partnership that specializes in renewable power assets. The company reported a solid second-quarter with funds from operation (FFO) reaching $268 million, up 23% from the same period last year. The revenue for the quarter also showed an 8.4% growth from Q2 2020 at $1.02 billion.

This September, Raymond James lifted its price target on Brookfield Renewable Partners L.P. (NYSE:BEP) to $44, while upgrading the stock to Outperform. The company currently pays an annual dividend of $1.22 per share, yielding 3.12%. Brookfield Renewable Partners L.P. (NYSE:BEP) has increased its dividend by 16.04% in the past three years.

Renaissance Technologies is the company’s largest shareholder, with shares worth $7.8 million. Overall, 20 hedge funds tracked by Insider Monkey have stakes in Brookfield Renewable Partners L.P. (NYSE:BEP) in Q2 2021, down from 24 in the previous quarter. These stakes are valued at $232.6 million.

ClearBridge Investments mentioned Brookfield Renewable Partners L.P. (NYSE:BEP) in its Q1 2021 investor letter. Here is what the firm has to say:

“U.S. renewables utility Brookfield Renewable was another detractor. Brookfield Renewable is a pure-play renewables operator and developer headquartered in Canada and domiciled in the U.S., focused on international hydro, solar, wind and storage technology. As more private and public institutions announce ambitious carbon reduction initiatives, Brookfield Renewable’s globally diversified, multi-technology renewables business makes it an attractive partner. Its development pipeline stands at 18,000 megawatts, providing confidence the company can meet its targeted double-digit cash flow growth through to 2025. Shares moderated amid expectations of rising bond yields, and a cool-off on the green trade.”

10. ASE Technology Holding Co., Ltd. (NYSE:ASX)

Number of Hedge Fund Holders: 7

Dividend Yield: 3.20%

Share Price as of October 14: $6.88

ASE Technology Holding Co., Ltd. (NYSE:ASX) ranks tenth on our list of the best high dividend stocks under $50. The company recently reported its strong Q3 results with revenue reaching $5.42 billion, up 26.9% from the prior-year quarter. In September, ASE Technology Holding Co., Ltd. (NYSE:ASX) reported revenue of $1.9 billion, showcasing a 40.7% year-over-year growth.

ASE Technology Holding Co., Ltd. (NYSE:ASX) pays an annual dividend of $0.22 per share, yielding 3.20%. The company's dividend payout ratio stands at 51.16%. Since the beginning of the year, the stock delivered a 15.24% return to shareholders, while its 12-month returns came in at 63.03%.

As of Q2 2021, 7 hedge funds tracked by Insider Monkey have positions in ASE Technology Holding Co., Ltd. (NYSE:ASX), compared with 8 in the previous quarter. The total value of these stakes is $241.1 million.

Like The Coca-Cola Company (NYSE:KO), The Procter & Gamble Company (NYSE:PG), Exxon Mobil Corporation (NYSE:XOM), Lowe's Companies, Inc. (NYSE:LOW), and Johnson & Johnson (NYSE:JNJ), ASE Technology Holding Co., Ltd. (NYSE:ASX) is also one of the notable stocks in 2021.

9. The Buckle, Inc. (NYSE:BKE)

Number of Hedge Fund Holders: 25

Dividend Yield: 3.29%

Share Price as of October 14: $40.18

The Buckle, Inc. (NYSE:BKE), an American fashion retail company, reported strong sales as economies in the U.S. are starting to reopen. In September, the company posted a growth of 17.8% in comparable store net sales, as compared with the same period last year, while the sales grew by 61.8% in 2021.

The Buckle, Inc. (NYSE:BKE) pays an annual dividend of $1.32 per share, yielding 3.29%. The company has been growing its dividend for the past 2 years consistently and it has a dividend payout ratio of 49.6%. Ken Heebner’s Capital Growth Management is the largest shareholder of The Buckle, Inc. (NYSE:BKE), with shares worth $47.2 million. Of the 873 hedge funds tracked by Insider Monkey, 25 hedge funds were bullish on The Buckle, Inc. (NYSE:BKE) as of Q2 2021, up from 22 in the previous quarter. These stakes are valued at $196.9 million.

Like The Coca-Cola Company (NYSE:KO), The Procter & Gamble Company (NYSE:PG), Exxon Mobil Corporation (NYSE:XOM), Lowe's Companies, Inc. (NYSE:LOW), and Johnson & Johnson (NYSE:JNJ), The Buckle, Inc. (NYSE:BKE) is also favored by investors in 2021.

8. Pfizer Inc. (NYSE:PFE)

Number of Hedge Fund Holders: 67

Dividend Yield: 3.77%

Share Price as of October 14: $41.42

Morgan Stanley, an investment banking company, recently lifted its price target on Pfizer Inc. (NYSE:PFE) to $48, with an Equal Weight rating on the shares. The firm’s analyst Matthew Harrison noted the company’s unique position in the development of Covid vaccine booster shots. He also expects growth in the company’s Covid sales guidance.

Pfizer Inc. (NYSE:PFE) is an American pharmaceutical and biotech company. In Q2 2021, the company posted an EPS of $1.07, beating the estimates by $0.09. Pfizer Inc. (NYSE:PFE) reported revenue of $19 billion, presenting a 93% growth from the prior-year quarter. As of Q2 2021, 67 hedge funds tracked by Insider Monkey are reported to have stakes in Pfizer Inc. (NYSE:PFE), with a total value of over $2.35 billion. The number of hedge funds having stakes in the company stood at 65 in the previous quarter, highlighting the positive hedge fund sentiment.

Pfizer Inc. (NYSE:PFE) has a track record of 12 years of consistent dividend growth. The company currently pays an annual dividend of $1.56 per share, yielding 3.77%. The stock returned 18.6% in the past year. It ranks eighth on our list of the best high dividend stock under $50.

Pfizer Inc. (NYSE:PFE) is also one of the notable dividend stocks like Coca-Cola Company (NYSE:KO), The Procter & Gamble Company (NYSE:PG), Exxon Mobil Corporation (NYSE:XOM), Lowe's Companies, Inc. (NYSE:LOW), and Johnson & Johnson (NYSE:JNJ).

ClearBridge Investments published its Q1 2021 investor letter and mentioned Pfizer Inc. (NYSE:PFE) in it. Here is what the firm has to say:

“Our underweights in health care and staples contributed to relative performance during the period. As we continue to focus the portfolio on high-conviction ideas, we sold Pfizer in late 2020, in the health care sector.”

7. FirstEnergy Corp. (NYSE:FE)

Number of Hedge Fund Holders: 36

Dividend Yield: 4.38%

Share Price as of October 14: $35.64

FirstEnergy Corp. (NYSE:FE), an American electric services company, ranks seventh on our list of the best high dividend stocks under $50.

FirstEnergy Corp. (NYSE:FE) has increased its dividend by 9% in the past three years, and currently pays an annual dividend of $1.56 per share, yielding 4.38%. Its dividend payout ratio stands at 65.2%. This July, Morgan Stanley lifted its price target on FirstEnergy Corp. (NYSE:FE) to $45, with an Overweight rating on the shares.

Carl Icahn’s Icahn Capital is the company’s largest shareholder with approximately 19 million shares. However, the number of hedge funds tracked by Insider Monkey having stakes in FirstEnergy Corp. (NYSE:FE) reduced to 36 in Q2 2021, from 51 in the previous quarter. The value of these stakes is $1.7 billion.

6. Holly Energy Partners, L.P. (NYSE:HEP)

Number of Hedge Fund Holders: 3

Dividend Yield: 7.06%

Share Price as of October 14: $19.83

Holly Energy Partners, L.P. (NYSE:HEP) is an American energy company that is engaged in operations related to petroleum products and crude pipelines, and storage tanks. On July 22, the company’s board announced a quarterly dividend of $0.35 per share, paying an annual yield of 7.06%. Holly Energy Partners, L.P. (NYSE:HEP) ranks sixth on our list of the best high dividend stocks under $50.

As of Q2 2021, Arrowstreet Capital is the largest shareholder of Holly Energy Partners, L.P. (NYSE:HEP), owning shares worth $3.5 million. In addition to this, 3 hedge funds tracked by Insider Monkey are reported having stakes in the company in Q2, up from 2 in the previous quarter. These stakes are worth $4.43 million.

Holly Energy Partners, L.P. (NYSE:HEP) posted an EPS of $0.48 in Q2, in line with the estimates. The company’s revenue beat the analysts’ consensus by $3.79 million at $127.1 million. The stock gained 52.17% in the past year.

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Disclosure. None. 11 Best High Dividend Stocks Under $50 is originally published on Insider Monkey.