In this article, we discuss 12 52-week low dividend stocks to consider. You can skip our detailed analysis of dividend stocks and their historical performance, and go directly to read 5 52-Week Low Dividend Stocks To Consider.
Dividend stocks experienced a tumultuous ride throughout 2023 and have struggled to bounce back. As of 2024, the S&P 500 Dividend Aristocrat Index, which tracks the performance of dividend stocks with at least 25 consecutive years of dividend growth, has only managed to climb by 3.17%, lagging behind the broader market's robust 8.57% year-to-date gain. The underperformance of dividend stocks can largely be attributed to the dominance of tech stocks in the spotlight last year. However, Meta's recent announcement of its inaugural dividend brings a glimmer of hope for investors, potentially offering a blend of growth and dividend opportunities.
That said, dividend stocks have demonstrated strong historical performance owing to their capacity to generate income, a feature that attracts investors to these stocks. Since 1926, dividends have accounted for roughly 32% of the overall return for the S&P 500 index, with capital gains making up the remaining 68%. Thus, it's evident that sustainable dividend income alongside the potential for capital appreciation are vital considerations for investors in shaping their expectations regarding total returns. According to a report from S&P Dow Jones Indices, the Dividend Aristocrats index has historically shown superior returns with less volatility when compared to the broader S&P 500, resulting in enhanced risk-adjusted returns. This is evident from their ability to offer downside protection, as indicated by their upside and downside capture ratios. Specifically, the index has outperformed the S&P 500 during down months 69.34% of the time and during up months 43.61% of the time. Additionally, it's worth noting that the S&P 500 Dividend Aristocrats have experienced lower drawdown levels in comparison to the benchmark index.
Despite the recent underperformance and sluggish recovery of dividend stocks, analysts are recommending their inclusion in portfolios for income generation. Among the favored choices are dividend growers, as highlighted by prominent analysts. David Bahnsen, the chief investment officer at the Bahnsen Group, emphasized the importance of dividend growers in a portfolio during an interview with CNBC. Here are some comments from the analyst:
“We really believe that cash flow is king and dividend growers through time and their avoidance of a lot of burst bubbles that happen with the alternative end up doing better. We have tons of track records to prove that, but I think ultimately right now people have actually gotten away with this recovery trade since the 2022 meltdown.”
Investing in dividend stocks like The Procter & Gamble Company (NYSE:PG), Colgate-Palmolive Company (NYSE:CL), and PepsiCo, Inc. (NASDAQ:PEP) could prove highly advantageous for investors. These companies have not only maintained a track record of regular dividend payments over the years but have also consistently increased their dividends for decades. Moreover, these stocks have demonstrated the ability to deliver positive returns to shareholders over time. In this article, however, we will take a look at the best 52-week low dividend stocks to consider.
12 52-Week Low Dividend Stocks To Consider
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Our Methodology:
For this article, we first listed down all dividend stocks that recently hit their 52-week lows. We then used Insider Monkey's exclusive database of 933 leading hedge funds to get the hedge fund sentiment for each stock. Finally, we narrowed our list to 12 of these stocks that had the highest number of hedge fund investors, as tracked by Insider Monkey in Q4 2023. 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).
Sasol Limited (NYSE:SSL) is a South Africa-based integrated chemicals and energy company that is involved in the exploration, production, and refining of crude oil and natural gas. The company currently offers an interim dividend of $0.5321 per share and has a dividend yield of 8.79%, as of March 19. It is among the 52-week low stocks on our list as the share price has fallen by 43.3% over the past 12 months.
The Procter & Gamble Company (NYSE: PG), Colgate-Palmolive Company (NYSE:CL), and PepsiCo, Inc. (NASDAQ:PEP) are some of the best dividend stocks that have grabbed investors' attention for years.
At the end of Q4 2023, 12 hedge funds tracked by Insider Monkey reported having stakes in Sasol Limited (NYSE:SSL), up from 8 in the previous quarter. The collective value of these stakes is over $20.2 million. Among these hedge funds, Millennium Management was the company's leading stakeholder in Q4.
BCE Inc. (NYSE:BCE) is a Canadian telecommunications and media company that provides a wide range of telecommunications services to residential, business, and government customers across the country. The company pays a quarterly dividend of C$0.9975 per share, having raised it by 3.1% in February this year. This was the company's 14th consecutive annual dividend hike, which makes BCE one of the best 52-week low stocks to consider. As of March 19, the stock has a dividend yield of 8.62%.
As of the close of Q4 2023, 19 hedge funds in Insider Monkey's database owned stakes in BCE Inc. (NYSE:BCE), growing from 15 in the previous quarter. The overall value of these stakes is more than $78.5 million.
10. Brown-Forman Corporation (NYSE:BF-B)
Number of Hedge Fund Holders: 21
1-Year Share Price Decline as of March 18: 15.9%
Brown-Forman Corporation (NYSE:BF-B) is next on our list of the best 52-week low stocks to consider. The American multinational company primarily operates in the alcohol beverage industry and is renowned for its production of premium alcoholic beverages, particularly whiskey and bourbon. On January 24, the company announced a quarterly dividend of $0.2178 per share, which was in line with its previous dividend. In 2023, it stretched its dividend growth streak to 40 years. The stock's dividend yield on March 19 came in at 1.66%. Over the past 12 months, the stock has declined by 15.9%.
At the end of December 2023, 21 hedge funds owned stakes in Brown-Forman Corporation (NYSE:BF-B), down from 30 in the previous quarter. The consolidated value of these stakes is over $1.03 billion. With over 11.6 million shares, Fundsmith LLP was the company's leading stakeholder in Q4.
American States Water Company (NYSE:AWR) is a California-based water and utility services company that offers related services to its consumers. The company's quarterly dividend comes in at $0.43 per share for a dividend yield of 2.45%, as of March 19. The company holds one of the longest dividend growth streaks in the US market, spanning over 69 years. It is on our list of 52-week low stocks as its share price has fallen by 20.1% in the past 12 months.
The number of hedge funds holding stakes in American States Water Company (NYSE:AWR) jumped to 21 in Q4 2023, from 16 in the preceding quarter, as per Insider Monkey's database. These stakes are collectively valued at over $52.5 million.
CONMED Corporation (NYSE:CNMD) is a global medical technology company that specializes in the development, manufacturing, and distribution of surgical equipment and devices used in various medical specialties. On February 28, the company declared a quarterly dividend of $0.28 per share, which fell in line with its previous dividend. As of March 19, the stock has a dividend yield of 1.05%.
According to Insider Monkey's database of Q4 2023, 23 hedge funds held investments in CONMED Corporation (NYSE:CNMD), up from 19 in the previous quarter. The stakes owned by these hedge funds have a value of over $148.4 million in total. Ken Fisher's Fisher Asset Management was the company's leading stakeholder in Q4.
Leggett & Platt, Incorporated (NYSE:LEG) is a diversified manufacturer that designs and produces a variety of engineered components and products for various industries. In the past 12 months, the stock has declined by 39.08%. However, its dividend history remained strong over the years. The company has been consistently growing its payouts for the past 52 years, which makes it one of the best 52-week low stocks to consider. It offers a quarterly dividend of $0.46 per share and has a dividend yield of 9.99%, as of March 19.
Leggett & Platt, Incorporated (NYSE:LEG) ended the fourth quarter of 2023 with 24 hedge fund positions, up from 19 in the previous quarter, according to Insider Monkey's database. The stakes held by these funds have a total value of over $123.6 million.
Healthcare Realty Trust Incorporated (NYSE:HR) ranks sixth on our list of the best 52-week low stocks to consider. The American real estate investment trust company specializes in healthcare-related properties. These properties include medical office buildings, outpatient facilities, clinics, surgery centers, and other healthcare facilities. The company has an 11-year run of paying regular dividends to shareholders and it currently offers a quarterly dividend of $0.31 per share. The stock has an impressive dividend yield of 9.45%, as of March 19.
HR can be added to dividend portfolios alongside some of the best dividend stocks, such as The Procter & Gamble Company (NYSE: PG), Colgate-Palmolive Company (NYSE:CL), and PepsiCo, Inc. (NASDAQ:PEP).
Healthcare Realty Trust Incorporated (NYSE:HR) remained popular among elite funds in Q4 2023, ending the quarter with 25 hedge fund positions, up from 17 in the previous quarter, according to Insider Monkey's database. The stakes held by these funds have a total value of over $243.4 million.
