In this article, we discuss 12 best high dividend stocks under $100. You can skip our detailed analysis of high dividend stocks and their performance over the years, and go directly to read 5 Best High Dividend Stocks Under $100.
The underperformance of dividend stocks last year created opportunities for long-term investors who can take advantage of favorable valuations at present. Investors are particularly drawn to stocks that offer above-average yields and companies with consistent dividend payment track records. It's widely acknowledged that dividend yield holds significant importance when investing in dividend stocks. In the last CNBC's Delivering Alpha Stock Survey conducted in 2023, in which 300 investors, traders, and money managers were polled, dividend investing came out to be a key strategy popular among investors. About 23% of the polled audiences said they prefer high dividend-yielding stocks.
While high-dividend stocks may not always be the optimal choice, research indicates that over the long term, they tend to yield better results. A study conducted by the University of Nevada found that portfolios consisting of the top 10 highest dividend yield stocks from the Dow 30 index outperformed portfolios with medium and low dividend yields between 1987 and 2012. The study also highlighted that investing in high dividend yield stocks proved to be profitable in the long run, although short-term returns could fluctuate significantly.
According to a report from Capital Group, high dividend stocks exhibit potential for superior downside capture. The downside capture ratio is a metric used to assess how a fund performed relative to the index during market downturns. A ratio below 100 suggests that a fund experienced less loss compared to the index during a given period, while a ratio above 100 indicates greater loss than the index. Drawing on data from Eugene Fama and Kenneth French, the report emphasized that historically, high-dividend stocks have offered greater downside protection compared to stocks with low or no dividends. Specifically, over 30 years, high dividend-paying stocks exhibited significantly lower downside capture, experiencing less loss compared to the S&P 500 Index when contrasted with lower dividend-paying counterparts.
As mentioned earlier, combining high dividend yields with a consistent track record of dividend growth forms an advantageous investment strategy for investors. Nevertheless, these qualities are present in only a select few stocks. Philip Morris International Inc. (NYSE:PM), Verizon Communications Inc. (NYSE:VZ), and Bristol-Myers Squibb Company (NYSE:BMY) are some of the best dividend stocks in this regard as these companies have not only raised their dividends over the years but also maintain above-average yields, making them attractive options for investors seeking reliable income streams. In this article, we will take a look at some high-yield stocks under $100.
For this list, we first used a stock screener to identify dividend-paying stocks priced below $100 and offering dividend yields above 5% as of March 19. From that selection, we chose 12 companies with strong dividend histories and ranked them in ascending order of hedge funds’ sentiment toward them, according to Insider Monkey’s database of 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).
Universal Corporation (NYSE:UVV) is a global leaf tobacco supplier. It operates in various segments of the tobacco industry, including procuring, processing, packaging, storing, and shipping leaf tobacco. On February 7, the company declared a quarterly dividend of $0.80 per share, which was in line with its previous dividend. The company is a dividend king with 53 consecutive years of dividend growth under its belt, which makes UVV one of the best dividend stocks with high yields. The stock has a dividend yield of 6.31%, as of March 19.
At the end of Q4 2023, 8 hedge funds tracked by Insider Monkey reported having stakes in Universal Corporation (NYSE:UVV), compared with 9 in the previous quarter. The consolidated value of these stakes is over $107 million.
11. Innovative Industrial Properties, Inc. (NYSE:IIPR)
Number of Hedge Fund Holders: 11
Dividend Yield as of March 19: 7.50%
Share Price as of March 19: $97.12
Innovative Industrial Properties, Inc. (NYSE:IIPR) is an American real estate investment trust company that specializes in the acquisition, ownership, and management of properties used for the cultivation and processing of medical-use cannabis. The company's quarterly dividend comes in at $1.82 per share for a dividend yield of 7.50%, as of March 19. With seven consecutive years of dividend growth, IIPR is one of the best dividend stocks with high yields.
As of the end of Q4 2023, 11 hedge funds in Insider Monkey's database owned stakes in Innovative Industrial Properties, Inc. (NYSE:IIPR), compared with 16 in the preceding quarter. These stakes have a collective value of over $142.6 million. Among these hedge funds, Zimmer Partners was the company's leading stakeholder in Q4.
Spire Inc. (NYSE:SR) is a Missouri-based energy company that operates primarily in the natural gas industry. The company provides natural gas service to residential, commercial, industrial, and wholesale customers across several states in the US. The company pays a quarterly dividend of $0.755 per share, having raised it by 5% in November 2023. Through this increase, it stretched its dividend growth streak to 21 years. With a dividend yield of 5.08% as of March 19, SR is one of the best dividend stocks with high yields.
Spire Inc. (NYSE:SR) was a part of 16 hedge fund portfolios at the end of Q4 2023, which remained unchanged from the previous quarter, as per Insider Monkey's database. The stakes owned by these hedge funds have a total value of over $52.2 million.
W. P. Carey Inc. (NYSE:WPC) is a real estate investment trust company that specializes in the ownership and management of commercial real estate properties. On March 15, the company declared a 0.6% hike in its quarterly dividend to $0.865 per share. The decision was made shortly after the company reduced its dividend by nearly 20% in December 2023. The stock offers a dividend yield of 6.22%, as of March 19.
According to Insider Monkey's database of Q4 2023, 18 hedge funds in Insider Monkey's database reported owning stakes in W. P. Carey Inc. (NYSE:WPC), compared with 21 in the previous quarter. The consolidated value of these stakes is over $209 million. With over 1 million shares, Balyasny Asset Management was the company's leading stakeholder in Q4.
8. Cogent Communications Holdings, Inc. (NASDAQ:CCOI)
Number of Hedge Fund Holders: 19
Dividend Yield as of March 19: 6.19%
Share Price as of March 19: $62.38
Cogent Communications Holdings, Inc. (NASDAQ:CCOI) is a leading provider of high-speed internet access and data transport services to businesses and organizations around the world. On February 29, the company announced a 1% hike in its quarterly dividend to $0.965 per share. This was the company's 46th consecutive quarterly dividend hike, which makes CCOI one of the best dividend stocks with high yields. As of March 19, the stock has a dividend yield of 6.19%.
Cogent Communications Holdings, Inc. (NASDAQ:CCOI) was included in 19 hedge fund portfolios at the end of Q4 2023, down slightly from 20 in the previous quarter, as per Insider Monkey's database. These stakes are worth roughly $420 million in total.
Hasbro, Inc. (NASDAQ:HAS) is a Rhode Island-based toy and entertainment company that designs, manufactures, and markets a wide range of toys, games, and entertainment products. The company currently pays a quarterly dividend of $0.70 per share and has a dividend yield of 5.18%, as of March 19.
As of the end of the December quarter of 2023, 25 hedge funds held stakes in Hasbro, Inc. (NASDAQ:HAS), compared with 28 in the previous quarter. These stakes have a total value of over $464.5 million.
ClearBridge Investments mentioned Hasbro, Inc. (NASDAQ:HAS) in its Q4 2023 investor letter. Here is what the firm has to say:
“Stock selection in the consumer discretionary sector also weighed on performance. This included two of the portfolio’s top individual detractors in Hasbro, Inc. (NASDAQ:HAS) and Aptiv. Hasbro, which owns global entertainment brands such as Monopoly, My Little Pony, and Nerf, has struggled over the past few quarters due to lackluster demand for toys and games in favor of other forms of digital entertainment. Persistent underperformance has undermined our optimism over the company’s legacy businesses, and ultimately led us to exit the stock.”
Agree Realty Corporation (NYSE:ADC) ranks sixth on our list of the best dividend stocks with high yields. The real estate investment trust company specializes in the acquisition, development, and management of properties primarily leased to retail tenants. The company offers a monthly dividend of $0.247 per share and has a dividend yield of 5.30%, as of March 19.
Insider Monkey's database of Q4 2023 indicated that 26 hedge funds owned stakes in Agree Realty Corporation (NYSE:ADC), compared with 28 in the previous quarter. These stakes have a total value of over $377.8 million. Zimmer Partners was the largest stakeholder of the company, owning nearly 3 million shares.
