3 Long-Term Dividend Buys You Can Get for Under $50

Key Points

• Pfizer’s strong pipeline and personalized medicine focus support its potential for dividend growth and total returns.
• Verizon’s 5G investments are driving recurring revenue and margin expansion, fueling dividend stability and upside potential for value investors.
• Kinder Morgan’s fee-based pipeline business generates steady cash flow, offering a high dividend yield and solid upside independent of commodity prices.

Despite ongoing concerns about overvalued stocks, many value investors sleep well at night. That’s because the key to long-term value investing is total return, which includes a healthy, growing dividend.

It also means having the discipline to do what doesn’t come naturally to many investors. That is, stepping away from their screens and letting the market do its work. That’s because many of these stocks are mature companies that won’t fog the mirrors of many financial news outlets.

However, boring is beautiful when it counts. That’s what investors get by investing in these three high-yield dividend stocks that can still be purchased for less than $50 per share.

Pfizer’s Turnaround Is Taking Shape

Investors may be quick to note that Pfizer Inc. NYSE: PFE hasn’t been a great stock for value investors in the last five years, registering a negative 13% total return in that time. The decline in revenue and earnings from its vaccine-fueled peak in 2021 lent support to the claim that Pfizer was cheap for a reason.

However, like many pharmaceutical stocks, it’s always helpful to look at the stock’s performance over a longer time period. Over a 10, 15, or 20-year period, PFE stock has delivered a strong total return to value investors. The company’s August 5 earnings report lends support to the idea that the company may be ready for the next wave of growth-producing drugs.

Pfizer beat revenue and earnings expectations and raised its full-year earnings per share (EPS) expectations. The gains were due largely to the company’s COVID-19 portfolio. However, the company’s future growth is supported by a diversified portfolio and a strong pipeline of new drugs and vaccines, notably in the emerging area of personalized medicine.

That’s pushed PFE stock up 1.4% since the earnings report. However, the consensus price of $28.12 gives investors 13% upside to go along with a high-yield dividend that currently has a 6.99% yield.

Spending in 5G Is Paying Off For Value Investors

Verizon Communications Inc. NYSE: VZ is another stock that’s had choppy performance in the last five years, delivering a total return of just over 1%.

Much of that was due to the company’s investment in 5G, which put pressure on earnings.

That expense is starting to pay off as 5G adoption becomes widespread. This delivers two things that value investors love to hear: recurring revenue growth and improved margins.

Both metrics were on display in the company’s second-quarter earnings report.

VZ stock is up nearly 10% since the middle of July and is still trading in the middle of its 52-week range.

Analysts give Verizon stock approximately 10% more upside, which is in addition to the company’s safe dividend, which has increased for 20 consecutive years and has a 6.26% yield.

A Cash Flow Machine Independent of Oil Prices

Energy stocks have underperformed the market in the last five years, but Kinder Morgan Inc. NYSE: KMI has been a profitable exception. KMI stock has delivered a total return of approximately 152% in the last five years.

This is due to the company’s business model. The midstream oil company owns and operates a vast pipeline network spanning 83,000 miles throughout North America and Canada.

This includes both oil and natural gas, the latter of which is critical to meeting the power demands of data centers.

Kinder Morgan collects a fee to reserve capacity, ensuring a steady revenue stream that is independent of underlying oil and natural gas prices. It's that volume that contributes to the company’s earnings growth.

Many analysts believe that oil and natural gas prices will move higher as the economy grows in the second half of 2025 and into 2026.

That growth supports analysts’ estimates for a 17% upside in KMI stock, along with a dividend yielding 4.4%.