SLIDESHOW: Top 5 Cheap Dividend Stocks Below $5

Braemar Hotels & Resorts invests in hotels and resorts. Co. conducts its business and owns substantially all of its assets through its operating partnership, Braemar Hospitality Limited Partnership. Co. operates in the hotel investment segment of the hotel lodging industry. Co. owns interests in hotel properties in several states, the District of Columbia and St. Thomas, U.S. Virgin Islands, excluding those attributable to its joint venture partner. The hotel properties in Co.'s portfolio are mainly located in U.S. urban and resort locations. Co. owns most of its hotel properties, and the remaining hotel properties through an investment in a majority-owned consolidated joint venture entity. More details about Braemar Hotels & Resorts at: http://www.bhrreit.com. View BHR's Dividend History » ETFs holding BHR »

Should Braemar Hotels & Resorts shares be counted among the Top 5 Cheap Dividend Stocks Below $5 label? To start, we see that the recent trading price for BHR stock is $2.68 and the dividend yield is 7.46% (as of 9/26/2023). The most recent quarter's (MRQ) earnings result, annualized, was $0.8/share. Looking at the sum total of quarterly earnings across the trailing twelve month (TTM) period, Braemar Hotels & Resorts produced $0.96/share. And taking the median quarterly result across the TTM period, and annualizing it, results in $0.72/share. Comparing the current indicated annual dividend rate of $0.20 against that median result, we calculate a dividend payout ratio of 27.8%. Comparing the company's various earnings metrics against the stock price, we end up with a PE ratio of 3.7 for the TTM Median method, 3.4 for price to earnings using MRQ annualized, and 2.8 for current price/TTM earnings. Based on BHR's history, that recent TTM PE is low relative to the historical average, with the recent PE 70.5% lower than the average (TTM method) of 9.5.