Is Nokia Oyj (NOK) the Best Dividend Penny Stock to Buy According to Hedge Funds?

Nokia Oyj (NOK) has been making waves in the telecommunications industry, and its dividend policy has caught the attention of hedge funds. With a dividend yield of 2.82% and a consistent payout, Nokia Oyj is an attractive option for income-oriented investors. But is it the best dividend penny stock to buy according to hedge funds? Let's dive into the data and find out.

Dividend Yield and Payout Ratio

Nokia Oyj has a dividend yield of 2.82%, which is higher than the average dividend yield of the S&P 500 (around 1.5% as of 2025). This indicates that Nokia Oyj offers a relatively high income stream for investors compared to other dividend stocks in the market. The company's dividend payout ratio is 57.73%, which means that Nokia Oyj is distributing a significant portion of its earnings to shareholders. This ratio is lower than some other dividend stocks, indicating that Nokia Oyj has room to increase its dividend payout in the future.

Dividend History and Growth

Nokia Oyj has a history of paying dividends, which is an attractive feature for income-oriented investors. The company has been paying dividends since at least 2018, as indicated by the dividend chart provided. While the dividend growth rate is not explicitly mentioned, the fact that Nokia Oyj has paid a dividend of $0.14 per share in the past year suggests a consistent payout. This consistency, along with the high yield, makes Nokia Oyj an attractive option for income-oriented investors.

Stock Price and Volatility

As of 2025, Nokia Oyj's stock price is around €4.94, which is relatively low compared to other dividend stocks in the market. This low stock price makes Nokia Oyj a penny stock, which can be more accessible to retail investors. The stock price has increased by +41.55% in the last 52 weeks, and the beta is 0.75, so Nokia Oyj's price volatility has been lower than the market average.



Hedge Fund Interest

As of Q1 2022, 465 hedge funds hold Nokia Oyj stocks, representing 7.52% of the total amount of its stocks outstanding. This high level of interest from hedge funds suggests that Nokia Oyj is considered an attractive investment opportunity. The number of hedge funds holding Nokia Oyj stocks has decreased by -22.97% or -127.41M shares fewer compared to the previous quarter. However, 26.24% (122) of current hedge fund investors increased the number of shares held, 37.42% (174) sold a part of the shares held, and 17.42% (81) closed the holdings completely. 41 hedge funds are new holders of Nokia Oyj stock in Q1 2022, which is 8.82% of total holders.

Analyst Forecasts

The average price target for Nokia Oyj is $6.62, which is 34.01% higher than the current price. The consensus rating is "Strong Buy." Analysts estimate an annual dividend of $0.14 per share in 2025, which is a 35.63% decrease from the previous year. However, the payout ratio is expected to decrease to 57.73% in 2025, indicating a potential increase in the dividend payout.

Risks and Challenges

While Nokia Oyj offers an attractive dividend yield and has the support of hedge funds, there are still risks and challenges to consider. The company's dividend payout ratio is relatively high, which could lead to a decrease in the dividend payout if earnings decline. Additionally, Nokia Oyj operates in a competitive industry, and its financial performance could be affected by market conditions and technological advancements.

In conclusion, Nokia Oyj is an attractive dividend penny stock with a high yield, consistent payout, and the support of hedge funds. However, investors should be aware of the risks and challenges associated with the company's dividend policy and industry competition. By carefully considering the data and seeking expert advice, investors can make informed decisions about whether Nokia Oyj is the best dividend penny stock to buy according to hedge funds.