Amcor plc (AMCR): Among the Cheap Quarterly Dividend Stocks to Buy Now

We recently published a list of the 10 Cheap Quarterly Dividend Stocks to Buy Now. In this article, we are going to take a look at where Amcor plc (NYSE:AMCR) stands against other overlooked dividend stocks.

In the current market environment, investors are looking to seek stable income as a way to protect themselves against a possible recession. Business surveys from ISM and S&P Global have highlighted increasing concerns among companies about the impact of new tariffs, with the S&P Global survey projecting an annual GDP growth rate of only around 1% for the first quarter. While most forecasts predict growth of 0.5%, some nowcasting models indicate the possibility of a contraction. Markets are particularly focused on how the US administration will address the growing recession risks, especially regarding its approach to tariffs and trade agreements.

In addition, despite President Donald Trump’s decision to pause a significant tariff increase on multiple countries, Americans continue to fear a recession and rising inflation. Consumer sentiment dropped 8% in April compared to the previous month, reaching a final reading of 52.2, according to the University of Michigan’s latest survey. This level of sentiment marked the fourth-lowest in records dating back to 1952. Joanne Hsu, the survey’s director, made the following comment in the release:

“While this month’s deterioration was particularly strong for middle-income families, expectations worsened for vast swaths of the population across age, education, income, and political affiliation. Consumers perceived risks to multiple aspects of the economy, in large part due to ongoing uncertainty around trade policy and the potential for a resurgence of inflation looming ahead.”

Analysts suggest that investors worried about an economic slowdown might want to consider investing in dividend-stock funds, as these stocks have historically performed relatively well during recessions. Companies that pay dividends usually generate enough excess cash flow to sustain payments year after year. Dividend programs are often seen as a sign of strong financial discipline, as companies committed to paying dividends are generally hesitant to alter their policies. According to a Morningstar report, dividend-paying stocks outperformed the broader market during the recessions that began in July 1981, March 2001, and December 2007, with the stocks doing significantly better in two of those periods. However, they slightly underperformed during the short recession of 1980, which followed the Federal Reserve’s interest rate hikes to control the high inflation of the 1970s.

Within dividend investing, dividend growth stocks have outperformed those with high yields. A Morningstar report noted that dividend growth funds provided the most appealing long-term returns, as seen in the data presented. These funds not only offered the highest total returns but also achieved the best balance of risk and return, as measured by the Sharpe ratio. The report also pointed out that dividend growth strategies have generally performed the best during recessions. Except for 2001, when their greater exposure to technology stocks became a disadvantage, dividend-growth funds performed better than other dividend categories during recent recessionary periods.

Our Methodology

For this list, we screened for dividend companies with strong dividend histories and yields of at least 1%, as of April 27. From that list, we picked dividend stocks with forward P/E ratios below 20, as of April 27. The low price-to-earnings ratio shows that they are traded below their intrinsic value. The stocks are ranked in descending order of their P/E multiples.

At Insider Monkey, we are obsessed with hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

Amcor plc (NYSE:AMCR)

Forward P/E Ratio as of April 27: 10.9

Amcor plc (NYSE:AMCR) is a global leader in sustainable packaging solutions, providing flexible and rigid packaging for clients across the food, beverage, healthcare, and personal care sectors. With a strong focus on sustainability, the company competes through its international presence and investments in recyclable and compostable packaging options. Its close partnerships with consumer goods companies help stabilize demand and support long-term contracts.

In the second quarter of fiscal 2025, Amcor plc (NYSE:AMCR) reported revenue of $3.24 billion, a slight decline of 0.3% compared to the same period last year. However, shipment volumes grew by 2.3% year-over-year, building on the 1.6% gain in the first quarter and marking the fourth consecutive quarter of volume growth. On a comparable constant currency basis, adjusted EBIT rose by approximately 5% to $363 million.

In the first half of fiscal 2025, Amcor plc (NYSE:AMCR) generated $228 million in operating cash flow, a significant improvement from $159 million a year earlier. The company continues to pay a quarterly dividend of $0.1275 per share and has a dividend yield of 5.35%, as of April 27. It has been rewarding shareholders with growing dividends for the past 41 years, which makes AMCR one of the best cheap quarterly dividend stocks to invest in.

Overall, AMCR ranks 6th on our list of the best cheap quarterly dividend stocks. While we acknowledge the potential of AMCR as an investment, our conviction lies in the belief that some deeply undervalued dividend stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued dividend stock that is more promising than AMCR but that trades at 10 times its earnings and grows its earnings at double digit rates annually, check out our report about the dirt cheap dividend stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.