13 Best Dividend-Paying Stocks Under $15
In this article, we discuss 13 best dividend-paying stocks under $15. You can skip our detailed analysis of dividend stocks and their performance over the years, and go directly to read 5 Best Dividend-Paying Stocks Under $15.
Generating income is the foremost objective for investors contemplating entry into the stock market. Elements such as varying interest rates and persistent concerns regarding inflation consistently drive investors to reserve a portion of their funds. In this regard, dividend stocks emerge as an optimal choice, providing shareholders with consistent income distributions on a quarterly or monthly basis. Moreover, according to Hartford Funds, dividends have yielded robust returns for shareholders over the last 92 years, surpassing the performance of the overall market. The report highlighted that between 1940 and 2023, dividend income accounted for an average of 34% of the total return of the S&P 500 Index.
Investors consistently harbor concerns regarding how inflation might affect their investment choices. Fortunately, dividend stocks have shown resilience against inflationary pressures over the years, often surpassing inflationary trends instead of being significantly impacted by them. Historical analysis indicates that dividend stocks have proven to be among the top-performing investment options during inflationary periods. According to a report by Wisdom Tree, dividends exhibited an average annual growth rate of 5.7% from 1957 to 2022, surpassing the 3.68% average growth rate of inflation over the same period. Similarly, for the period between 1990 and 2022, dividends demonstrated an average growth rate of 5.6%, significantly outpacing the 2.64% growth rate of inflation during this time span.
Engaging in dividend stock investment requires a meticulous strategy for managing returns. Investors typically undertake a thorough analysis that includes comparing dividend levels with stock prices to make informed decisions. By carrying out these comparisons, investors can assess the relative attractiveness of dividend-paying stocks based on their yield and potential for capital appreciation. Several reports have also conducted comparisons between the performance of dividend stocks and that of stock prices and showed the superior performance of dividend equities. Wisdom Tree reported that over the past 64 years, there have been merely six instances where dividend levels experienced a decline, and only one of those occasions saw a decrease exceeding 5%. In stark contrast, throughout the same period, stock prices encountered declines in 18 years, with the most severe annual decline exceeding 40% and an average decline surpassing 11%. This means that stock prices exhibited more than twice the volatility compared to the underlying dividend cash flows during this period.
When considering investments in dividend stocks, low-priced equities have their own appeal. One of the main reasons for this is that dividend stocks with low prices may have greater potential for capital appreciation, as they have more room to grow compared to higher-priced stocks. In addition to this, if the company behind the low-priced dividend stock increases its dividends over time, investors could benefit from both increased income and potential capital gains. However, conducting thorough research on the company’s financial health and balance sheet is crucial when making such investment decisions. Johnson & Johnson (NYSE:JNJ), The Procter & Gamble Company (NYSE:PG), and AbbVie Inc (NYSE:ABBV) are some of the best dividend stocks that have grabbed investors’ attention over the years. However, in this article, we will take a look at dividend stocks under $15.
Image by Sergei Tokmakov Terms.Law from Pixabay
Our Methodology:
For this list, we used a Finviz stock screener to find dividend stocks trading below $15 as of the close of March 22. From the initial list, we narrowed down the selection to companies that pay regular dividends to shareholders and possess robust dividend policies, ensuring consistent future dividends. From the resultant list, we picked 13 stocks with the highest number of hedge fund investors, using Insider Monkey's Q4 2023 database of 933 hedge funds and their holdings. Hedge funds’ top 10 consensus stock picks outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here).
13. Krispy Kreme, Inc. (NYSE:DNUT)
Number of Hedge Fund Holders: 8
Share Price as of March 22: $12.4
Krispy Kreme, Inc. (NYSE:DNUT) is an American multinational bakery company that has a network of doughnut shops and coffeehouse chains. The company's cash position remained strong in FY23 as it generated over $45.5 million in operating cash flow and had over $38.2 million available in cash and cash equivalents. The company currently pays a quarterly dividend of $0.035 per share and has a dividend yield of 1.12%, as of March 23.
DNUT can be added to dividend portfolios alongside some of the best dividend stocks, such as Johnson & Johnson (NYSE:JNJ), The Procter & Gamble Company (NYSE:PG), and AbbVie Inc (NYSE:ABBV).
At the end of Q4 2023, 8 hedge funds tracked by Insider Monkey reported having stakes in Krispy Kreme, Inc. (NYSE:DNUT), up from 7 in the previous quarter. The collective value of these stakes is nearly $21 million. Among these hedge funds, Balyasny Asset Management was the largest stakeholder in Q4.
12. TTEC Holdings, Inc. (NASDAQ:TTEC)
Number of Hedge Fund Holders: 12
Share Price as of March 22: $9.98
TTEC Holdings, Inc. (NASDAQ:TTEC) is a Colorado-based customer experience company that offers a wide range of services including customer engagement, customer care, digital transformation, analytics, and consulting services. The company currently offers a semi-annual dividend of $0.52 per share for a dividend yield of 1.20%, as of March 23. Its semi-annual dividend amounted to $24.7 million, as paid to investors in October 2023. TTEC is one of the best dividend stocks on our list as the company has been growing its dividends for the past eight years.
As of the end of Q4 2023, 12 hedge funds in Insider Monkey's database held stakes in TTEC Holdings, Inc. (NASDAQ:TTEC), compared with 14 in the previous quarter. These stakes have a total value of over $46.5 million.
11. Barings BDC, Inc. (NYSE:BBDC)
Number of Hedge Fund Holders: 12
Share Price as of March 22: $9.03
Barings BDC, Inc. (NYSE:BBDC) is an American business development company that provides financing and capital to small and mid-sized companies. On February 22, the company declared a quarterly dividend of $0.26 per share, which was in line with its previous dividend. In 2023, it achieved its fifth consecutive year of dividend growth, which makes BBDC one of the best dividend stocks under $15. As of March 23, the stock has a dividend yield of 11.52%.
Insider Monkey's database of Q4 2023 indicated that 12 hedge funds held stakes in Barings BDC, Inc. (NYSE:BBDC), compared with 13 in the previous quarter. These stakes are collectively worth nearly $35 million. With over 2.1 million shares, Callodine Capital Management was the company's leading stakeholder in Q4.
10. Kennedy-Wilson Holdings, Inc. (NYSE:KW)
Number of Hedge Fund Holders: 13
Share Price as of March 22: $8.26
Kennedy-Wilson Holdings, Inc. (NYSE:KW) is a California-based real estate investment trust company that operates across a variety of real estate sectors including residential, commercial, and mixed-use properties. The company's current quarterly dividend comes in at $0.24 per share for a dividend yield of 11.62%, as of March 23. It has been paying regular dividends to shareholders since 2011, which makes KW one of the best dividend stocks under $15.
At the end of December 2023, 13 hedge funds tracked by Insider Monkey invested in Kennedy-Wilson Holdings, Inc. (NYSE:KW), up from 11 in the preceding quarter. The consolidated value of these stakes is over $353 million.
9. Vermilion Energy Inc. (NYSE:VET)
Number of Hedge Fund Holders: 14
Share Price as of March 22: $11.67
Vermilion Energy Inc. (NYSE:VET) is a Canada-based oil and gas company that is involved in the exploration, development, production, and acquisition of oil and natural gas properties. The company currently offers a quarterly dividend of C$0.12 per share, having raised it by 20% in December 2023. With a dividend yield of 3.03% as of March 23, VET is one of the best dividend stocks on our list.
According to Insider Monkey's database of Q4 2023, 14 hedge funds held stakes in Vermilion Energy Inc. (NYSE:VET) , compared with 15 a quarter earlier. These stakes have a total value of over $75.8 million. Israel Englander's Millennium Management was the company's largest stakeholder in Q4, owning over 2.7 million shares in the company.
8. Arbor Realty Trust, Inc. (NYSE:ABR)
Number of Hedge Fund Holders: 17
Share Price as of March 22: $12.9
Arbor Realty Trust, Inc. (NYSE:ABR) is next on our list of the best dividend stocks under $15. The real estate investment trust company currently pays a quarterly dividend of $0.43 per share. The company raised its dividends twice in 2023 and holds an 11-year streak of dividend growth. As of March 23, the stock has a dividend yield of 13.33%.
Arbor Realty Trust, Inc. (NYSE:ABR) was a popular stock among hedge funds at the end of Q4 2023, as 17 funds held stakes in the company, growing from 13 in the previous quarter. These stakes have a total value of over $91 million.
7. Banc of California, Inc. (NYSE:BANC)
Number of Hedge Fund Holders: 21
Share Price as of March 22: $14.72
Banc of California, Inc. (NYSE:BANC) is an American banking company that provides related financial services and products to its consumers. The company has been making regular dividend payments to shareholders since 2003 and currently pays a quarterly dividend of $0.10 per share. The stock's dividend yield on March 23 came in at 2.72%.
Banc of California, Inc. (NYSE:BANC) was a part of 21 hedge fund portfolios at the end of Q4 2023, according to Insider Monkey's database. The stakes held by these hedge funds are collectively worth more than $162 million. With over 6 million shares, Centerbridge Partners held the largest position in the company.
6. Amcor plc (NYSE:AMCR)
Number of Hedge Fund Holders: 21
Share Price as of March 22: $9.3
Amcor plc (NYSE:AMCR) ranks sixth on our list of the best dividend stocks under $15. The global packaging company has raised its payouts for 40 consecutive years and offers a quarterly dividend of $0.125 per share. The stock has a dividend yield of 5.42%, as of March 23.
As of the end of the fourth quarter of 2023, 21 hedge funds held stakes in Amcor plc (NYSE:AMCR), compared with 23 in the previous quarter, as per Insider Monkey's database. These stakes are worth over $164 million in total.
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Disclosure. None. 13 Best Dividend-Paying Stocks Under $15 is originally published on Insider Monkey.
