Written by MarketBeat Staff
April 26, 2024
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
- $13.18
- Dividend Yield
- 4.69%
- Track Record
- 0 Years of Consecutive Dividend Growth
- Payout Ratio
- -41.1%
- Consensus Rating
- Hold
- Consensus Price Target
- $33.80 (156.4% Upside)
About Compass Minerals International
Compass Minerals International, Inc, provides essential minerals 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
- $60.05
- Dividend Yield
- 2.31%
- Track Record
- 3 Years of Consecutive Dividend Growth
- Payout Ratio
- 29.2%
- Consensus Rating
- Hold
- Consensus Price Target
- $58.85 (2.0% Downside)
About Wells Fargo & Company
Wells Fargo & Company, a financial services company, provides diversified banking, investment, mortgage, and consumer and commercial finance products and services in the United States and internationally. The company 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
- $270.06
- Dividend Yield
- 3.3%
- Track Record
- 12 Years of Consecutive Dividend Growth
- Payout Ratio
- 72.1%
- Consensus Rating
- Moderate Buy
- Consensus Price Target
- $296.95 (10.0% Upside)
About Amgen
Amgen Inc discovers, develops, manufactures, and delivers human therapeutics worldwide. The company's principal products include Enbrel to treat plaque psoriasis, rheumatoid arthritis, and psoriatic arthritis; Otezla for the treatment of adult patients with plaque psoriasis, psoriatic arthritis, and oral ulcers associated with Behçet's disease; Prolia to treat postmenopausal women with osteoporosis; XGEVA for skeletal-related events prevention; Repatha, which reduces the risks of myocardial infarction, stroke, and coronary revascularization; Nplate for the treatment of patients with immune thrombocytopenia; KYPROLIS to treat patients with relapsed or refractory multiple myeloma; Aranesp to treat a lower-than-normal number of red blood cells and anemia; EVENITY for the treatment of osteoporosis in postmenopausal for men and women; Vectibix to treat patients with wild-type RAS metastatic colorectal cancer; BLINCYTO for the treatment of patients with acute lymphoblastic leukemia; TEPEZZA to treat thyroid eye disease; and KRYSTEXXA for the treatment of chronic refractory gout.
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- Share Price
- $25.46
- Dividend Yield
- 6.4%
- Track Record
- 15 Years of Consecutive Dividend Growth
- Payout Ratio
- 466.7%
- Consensus Rating
- Hold
- Consensus Price Target
- $36.33 (42.7% Upside)
About Pfizer
Pfizer Inc discovers, develops, manufactures, markets, distributes, and sells biopharmaceutical products in the United States, Europe, and internationally. The company offers medicines and vaccines in various therapeutic areas, including cardiovascular metabolic, migraine, and women's health under the Eliquis, Nurtec ODT/Vydura, Zavzpret, and the Premarin family brands; infectious diseases with unmet medical needs under the Prevnar family, Abrysvo, 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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#5 - General Electric (NYSE:GE)
- Share Price
- $162.19
- Dividend Yield
- 0.7%
- Track Record
- 0 Years of Consecutive Dividend Growth
- Payout Ratio
- 36.7%
- Consensus Rating
- Moderate Buy
- Consensus Price Target
- $170.00 (4.8% Upside)
About General Electric
General Electric Company, doing business as GE Aerospace, designs and produces commercial and defense aircraft engines, integrated engine components, electric power, and mechanical aircraft systems. It also offers aftermarket services to support its products. The company operates in the United States, Europe, China, Asia, the Americas, the Middle East, and Africa.
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#6 - Enterprise Products Partners (NYSE:EPD)
- Share Price
- $28.97
- Dividend Yield
- 7.09%
- Track Record
- 27 Years of Consecutive Dividend Growth
- Payout Ratio
- 81.7%
- Consensus Rating
- Moderate Buy
- Consensus Price Target
- $32.58 (12.5% 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. It operates in four segments: NGL Pipelines & Services, Crude Oil Pipelines & Services, Natural Gas Pipelines & Services, and Petrochemical & Refined Products Services.
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#7 - Emerson Electric (NYSE:EMR)
- Share Price
- $110.44
- Dividend Yield
- 1.92%
- Track Record
- 67 Years of Consecutive Dividend Growth
- Payout Ratio
- 10.9%
- Consensus Rating
- Moderate Buy
- Consensus Price Target
- $116.25 (5.3% Upside)
About Emerson Electric
Emerson Electric Co, a technology and software 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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#8 - Procter & Gamble (NYSE:PG)
- Share Price
- $161.53
- Dividend Yield
- 2.48%
- Track Record
- 68 Years of Consecutive Dividend Growth
- Payout Ratio
- 65.8%
- Consensus Rating
- Moderate Buy
- Consensus Price Target
- $169.76 (5.1% 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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#9 - United Parcel Service (NYSE:UPS)
- Share Price
- $147.51
- Dividend Yield
- 4.45%
- Track Record
- 15 Years of Consecutive Dividend Growth
- Payout Ratio
- 94.5%
- Consensus Rating
- Hold
- Consensus Price Target
- $165.23 (12.0% 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 express letters, documents, small packages, and palletized freight through air and ground services in the United States.
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#10 - Verizon Communications (NYSE:VZ)
- Share Price
- $39.83
- Dividend Yield
- 6.74%
- Track Record
- 19 Years of Consecutive Dividend Growth
- Payout Ratio
- 99.3%
- Consensus Rating
- Moderate Buy
- Consensus Price Target
- $44.21 (11.0% Upside)
About Verizon Communications
Verizon Communications Inc, through its subsidiaries, engages in the provision of communications, technology, information, and entertainment products and services to consumers, businesses, and governmental entities worldwide. It operates in two segments, Verizon Consumer Group (Consumer) and Verizon Business Group (Business).
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