Is Ardagh Metal Packaging SA (NYSE:AMBP) the Best High-Dividend Penny Stock to Buy Now?

Dividend stocks are gaining popularity in the market, especially with major technology companies now offering dividends for the first time. Americans are turning to dividend equities amidst the current inflation concerns and expectations of a prolonged period of high inflation. Affordable stocks that offer high dividends are becoming more attractive in this environment.

One such company that has caught the attention of hedge funds is Ardagh Metal Packaging SA (NYSE:AMBP), a leading player in the packaging industry. With 27 hedge fund investors, Ardagh Metal Packaging SA is known for producing beverage cans and currently boasts a dividend yield of over 9% as of May 13.

In its recent quarterly earnings report, Ardagh Metal Packaging SA reported adjusted EPS of $0.01, meeting expectations, while revenue saw a slight increase of 0.9% year over year to $1.14 billion. Despite its solid performance, Ardagh Metal Packaging SA is considered a smaller company with relatively low hedge fund sentiment compared to industry giants like Johnson & Johnson, Procter & Gamble, and Coca-Cola.

The company remains committed to its dividend policy, with the latest announcement of $0.10 per quarter. Ardagh Metal Packaging SA plans to continue evaluating its dividend policy on a quarterly basis, with no anticipated changes in the near future. Additionally, the company expects to reduce its growth CapEx next year and maintain its cash flow guidance.

While Ardagh Metal Packaging SA is a notable high-dividend penny stock, it may not be the best option currently according to Insider Monkey’s research. Investors looking for alternatives can explore other high-dividend penny stocks that may offer better opportunities.