3 Dividend Stocks Under $5 Worth Buying

Due to the Russia-Ukraine war and concerns surrounding 40-year high inflation rates, the major equity indexes were pushed into the correction territory earlier this year. The Fed approved an…

interest rate hike of 25 basis points two weeks ago to combat skyrocketing inflation rates and indicated that it planned six more hikes this year. Following the Fed’s aggressive monetary policy plan, the stock market is projected to remain volatile in the near term.

During a market downturn, investors are drawn toward high-yield dividend stocks. Dividend stocks are known to withstand market fluctuations and help investors’ portfolios weather volatility. To ensure a steady income stream, quality dividend stocks should be the top picks for investors amid uncertain market conditions. Investors’ interest in dividend stocks is evident in iShares Core High Dividend ETF’s (HDV) 12% gains over the past six months.

Given these factors, we think it advisable to invest in high-yield dividend stocks Banco Santander, S.A. (SAN – Get Rating), Ultrapar Participações S.A. (UGP – Get Rating), and Turkcell Iletisim Hizmetleri A.S. (TKC – Get Rating) that offer steady income irrespective of the market conditions.

Banco Santander, S.A. (SAN – Get Rating)

Headquartered in Madrid, Spain, SAN provides retail and commercial banking products worldwide. The company offers demand and time deposits, current and savings accounts, consumer finance, mortgages, cash management, trade and working capital solutions, insurance products, wealth management, and private banking services. It serves individuals, small and medium-sized enterprises, and large companies.

This January, Santander Holdings USA, Inc. (SHUSA), a wholly-owned subsidiary of SAN, announced that the Federal Reserve had approved the acquisition of all outstanding shares of common stock of Santander Consumer USA Holdings Inc. (SC) for $41.50 per share, which are not already owned by SHUSA.

In its fiscal 2021 fourth quarter, ended Dec. 31, 2021, SAN’s total revenue increased 7.1% year-over-year to €11.78 billion ($12.94 billion). The company’s net operating income improved 6.7% from the prior-year period to €6.14 billion ($6.74 billion). SAN’s underlying profit before tax grew 44% year-over-year to €3.83 billion ($4.21 billion). The company’s attributable profit rose 721.3% year-over-year to €2.28 billion ($2.50 billion).


SAN pays $0.08 as dividends annually, yielding 1.1% at its current share price.

The $52.95 billion consensus revenue estimate for its fiscal year 2022 ending Dec. 31, 2022, represents 3.6% year-over-year growth from 2021. The $0.44 consensus EPS estimate for its fiscal 2022 indicates an 18.9% year-over-year rise from the last year.

Shares of SAN increased marginally over the past three months. It closed Friday’s trading session at $3.39.

SAN’s POWR Ratings reflect this promising outlook. The stock has an overall B grade, which equates to Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 distinct factors, each with its own weighting.

SAN has a B grade for Growth, Stability, and Momentum. Within the B-rated Foreign Banks industry, it is ranked #3 of 96 stocks.

To see additional POWR Ratings (Quality, Value, and Sentiment) for SAN, click here.

Ultrapar Participações S.A. (UGP – Get Rating)

Headquartered in Sao Paulo, Brazil, UGP engages in gas distribution, fuel distribution, chemicals, storage, and drugstores businesses in Brazil, Mexico, Uruguay, Venezuela, U.S., Canada, Europe, and internationally. The company operates through more than 7,107 Ipiranga service stations, 1,804 AmPm convenience stores, 1,171 Jet Oil franchises, 405 Extrafarma drugstores, and three distribution centers.

Last December, UGP’s ultracargo planned to expand and diversify its operations with forthcoming auctions. UGP’s logistics company already operates liquid terminals in…

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