Sat., September 30th, 2023 | MarketBeat Staff
The stock market has always been unpredictable, but unprecedented world events have made the market even more unpredictable during the last few years. Between the end of the 10-year bull run, the COVID-19 pandemic, unprecedented fiscal stimulus, wars overseas, and rising inflation, the idea of a normal market environment has all but disappeared.
The only thing that we can do is look at historical averages to see where today’s market fits in the grand scheme of things. The DOW is still trading over 30,000 and S&P 500 companies are trading at nearly 21 times their annual earnings, well above the historical average of 15 times earnings.
At the same time, we find ourselves in a rapidly changing interest rate environment. Fixed income investments have increased in yield in the last few years, but it’s hard to predict how long the Federal Reserve will keep rates elevated for. S&P 500 stocks continue to yield under 2% and some investors think it's too challenging to find safe and affordable securities that pay 4%, 5%, and even 6% yields.
Searching for yield isn't easy in an environment where historically high asset prices and stimulus from the Fed have driven down yields. This doesn't leave many options for investors looking for retirement income or a decent dividend yield on their stocks, but there are a handful of cheap dividend stocks to buy that are still yielding 3%-6%.
We've put together some of the best dividend stocks that are trading under their value and at lower P/E ratios than their peers. These stocks are true bargains in the dividend world right now.
Let's review some of the best cheap dividend stocks in the market today in this slideshow.
#1 - Compass Minerals International (NYSE:CMP)
- Share Price
- $27.95
- Dividend Yield
- 2.17%
- Track Record
- 0 Years of Consecutive Dividend Growth
- Payout Ratio
- 272.7%
- Consensus Rating
- Moderate Buy
- Consensus Price Target
- $58.00 (107.5% Upside)
About Compass Minerals International
Compass Minerals International, Inc, produces and sells essential minerals primarily in the United States, Canada, the United Kingdom, and internationally. It operates through two segments, Salt and Plant Nutrition. The Salt segment produces, markets, and sells sodium chloride and magnesium chloride, including rock salt, mechanically and solar evaporated salt, and brine and flake magnesium chloride products; and purchases potassium chloride and calcium chloride to sell as finished products or to blend with sodium chloride to produce specialty products.
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#2 - Wells Fargo & Company (NYSE:WFC)
- Share Price
- $40.86
- Dividend Yield
- 3.42%
- Track Record
- 3 Years of Consecutive Dividend Growth
- Payout Ratio
- 35.0%
- Consensus Rating
- Moderate Buy
- Consensus Price Target
- $48.02 (17.5% Upside)
About Wells Fargo & Company
Wells Fargo & Company, a diversified financial services company, provides banking, investment, mortgage, and consumer and commercial finance products and services in the United States and internationally. It operates through four segments: Consumer Banking and Lending; Commercial Banking; Corporate and Investment Banking; and Wealth and Investment Management.
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- Share Price
- $268.76
- Dividend Yield
- 3.15%
- Track Record
- 11 Years of Consecutive Dividend Growth
- Payout Ratio
- 57.5%
- Consensus Rating
- Hold
- Consensus Price Target
- $265.44 (1.2% Downside)
About Amgen
Amgen Inc discovers, develops, manufactures, and delivers human therapeutics worldwide. It focuses on inflammation, oncology/hematology, bone health, cardiovascular disease, nephrology, and neuroscience areas. The company's products include Enbrel to treat plaque psoriasis, rheumatoid arthritis, and psoriatic arthritis; Neulasta that reduces the chance of infection due a low white blood cell count in patients cancer; Prolia to treat postmenopausal women with osteoporosis; Xgeva for skeletal-related events prevention; Otezla for the treatment of adult patients with plaque psoriasis, psoriatic arthritis, and oral ulcers associated with Behçet's disease; Aranesp to treat a lower-than-normal number of red blood cells and anemia; KYPROLIS to treat patients with relapsed or refractory multiple myeloma; and Repatha, which reduces the risks of myocardial infarction, stroke, and coronary revascularization.
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#4 - Magellan Midstream Partners (NYSE:MMP)
- Share Price
- $69.00
- Dividend Yield
- 6.11%
- Track Record
- 20 Years of Consecutive Dividend Growth
- Payout Ratio
- 83.5%
- Consensus Rating
- Reduce
- Consensus Price Target
- $60.70 (12.0% Downside)
About Magellan Midstream Partners
Magellan Midstream Partners, L.P. engages in the transportation, storage, and distribution of refined petroleum products and crude oil in the United States. The company operates refined products pipeline that transports gasoline, diesel and aviation fuel, kerosene, and heating oil to refiners, wholesalers, retailers, traders, railroads, airlines, and regional farm cooperatives; and to end markets, including retail gasoline stations, truck stops, farm cooperatives, railroad fueling depots, military bases, and commercial airports.
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- Share Price
- $33.17
- Dividend Yield
- 5.11%
- Track Record
- 12 Years of Consecutive Dividend Growth
- Payout Ratio
- 43.6%
- Consensus Rating
- Hold
- Consensus Price Target
- $46.35 (39.7% Upside)
About Pfizer
Pfizer Inc discovers, develops, manufactures, markets, distributes, and sells biopharmaceutical products worldwide. It offers medicines and vaccines in various therapeutic areas, including cardiovascular metabolic, migraine, and women's health under the Eliquis, Nurtec ODT/Vydura, and the Premarin family brands; infectious diseases with unmet medical needs under the Prevnar family, Nimenrix, FSME/IMMUN-TicoVac, and Trumenba brands; and COVID-19 prevention and treatment, and potential future mRNA and antiviral products under the Comirnaty and Paxlovid brands.
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#6 - General Electric (NYSE:GE)
- Share Price
- $110.55
- Dividend Yield
- 0.28%
- Track Record
- 0 Years of Consecutive Dividend Growth
- Payout Ratio
- 3.8%
- Consensus Rating
- Moderate Buy
- Consensus Price Target
- $122.71 (11.0% Upside)
About General Electric
General Electric Company operates as a high-tech industrial company in Europe, China, Asia, the Americas, the Middle East, and Africa. It offers gas and steam turbines, full balance of plant, upgrade, and service solutions, as well as data-leveraging software for power generation, industrial, government, and other customers.
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#7 - Enterprise Products Partners (NYSE:EPD)
- Share Price
- $27.37
- Dividend Yield
- 7.29%
- Track Record
- 26 Years of Consecutive Dividend Growth
- Payout Ratio
- 81.0%
- Consensus Rating
- Moderate Buy
- Consensus Price Target
- $30.70 (12.2% Upside)
About Enterprise Products Partners
Enterprise Products Partners L.P. provides midstream energy services to producers and consumers of natural gas, natural gas liquids (NGLs), crude oil, petrochemicals, and refined products. The company operates through four segments: NGL Pipelines & Services, Crude Oil Pipelines & Services, Natural Gas Pipelines & Services, and Petrochemical & Refined Products Services.
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#8 - Emerson Electric (NYSE:EMR)
- Share Price
- $96.57
- Dividend Yield
- 2.14%
- Track Record
- 66 Years of Consecutive Dividend Growth
- Payout Ratio
- 9.1%
- Consensus Rating
- Moderate Buy
- Consensus Price Target
- $105.67 (9.4% Upside)
About Emerson Electric
Emerson Electric Co, a technology and engineering company, provides various solutions for customers in industrial, commercial, and consumer markets in the Americas, Asia, the Middle East, Africa, and Europe. It operates in six segments: Final Control, Control Systems & Software, Measurement & Analytical, AspenTech, Discrete Automation, and Safety & Productivity.
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#9 - Procter & Gamble (NYSE:PG)
- Share Price
- $145.86
- Dividend Yield
- 2.57%
- Track Record
- 68 Years of Consecutive Dividend Growth
- Payout Ratio
- 63.7%
- Consensus Rating
- Moderate Buy
- Consensus Price Target
- $165.61 (13.5% Upside)
About Procter & Gamble
The Procter & Gamble Company provides branded consumer packaged goods worldwide. It operates through five segments: Beauty; Grooming; Health Care; Fabric & Home Care; and Baby, Feminine & Family Care. The Beauty segment offers conditioners, shampoos, styling aids, and treatments under the Head & Shoulders, Herbal Essences, Pantene, and Rejoice brands; and antiperspirants and deodorants, personal cleansing, and skin care products under the Olay, Old Spice, Safeguard, Secret, and SK-II brands.
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#10 - United Parcel Service (NYSE:UPS)
- Share Price
- $155.87
- Dividend Yield
- 4.17%
- Track Record
- 14 Years of Consecutive Dividend Growth
- Payout Ratio
- 56.2%
- Consensus Rating
- Hold
- Consensus Price Target
- $185.57 (19.1% Upside)
About United Parcel Service
United Parcel Service, Inc, a package delivery company, provides transportation and delivery, distribution, contract logistics, ocean freight, airfreight, customs brokerage, and insurance services. It operates through two segments, U.S. Domestic Package and International Package. The U.S. Domestic Package segment offers time-definite delivery of letters, documents, small packages, and palletized freight through air and ground services in the United States.
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