Mon., May 22nd, 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
- $34.07
- Dividend Yield
- 1.76%
- Track Record
- 0 Years of Consecutive Dividend Growth
- Payout Ratio
- -61.9%
- Consensus Rating
- Buy
- Consensus Price Target
- $59.67 (75.1% Upside)
About Compass Minerals International
Compass Minerals International, Inc engages in the production of salt, sulfate of potassium, and magnesium chloride, and in the provision of records storage. It operates through the Salt and Plant Nutrition segments. The Salt segment provides highway de-icing salt. The Plant Nutrition segment produces and markets SOP products in various grades worldwide to distributors and retailers of crop inputs.
Read More
#2 - Wells Fargo & Company (NYSE:WFC)
- Share Price
- $40.03
- Dividend Yield
- 3%
- Track Record
- 2 Years of Consecutive Dividend Growth
- Payout Ratio
- 34.4%
- Consensus Rating
- Buy
- Consensus Price Target
- $49.45 (23.5% Upside)
About Wells Fargo & Company
Wells Fargo & Co is a diversified, community-based financial services company. It is engaged in the provision of banking, insurance, investments, mortgage products and services, and consumer and commercial finance. It operates through the following segments: Consumer Banking and Lending, Commercial Banking, Corporate and Investment Banking, and Wealth & Investment Management.
Read More
- Share Price
- $223.42
- Dividend Yield
- 3.8%
- Track Record
- 11 Years of Consecutive Dividend Growth
- Payout Ratio
- 57.9%
- Consensus Rating
- Hold
- Consensus Price Target
- $250.94 (12.3% Upside)
About Amgen
Amgen, Inc is a biotechnology company, which engages in the discovery, development, manufacture, and marketing of human therapeutics. It operates through Human Therapeutics segment. The company was founded by William K. Bowes, Jr., Franklin Pitcher Johnson, Jr., George B. Rathmann, and Joseph Rubinfeld on April 8, 1980 and is headquartered in Thousand Oaks, CA.
#4 - Magellan Midstream Partners (NYSE:MMP)
- Share Price
- $62.64
- Dividend Yield
- 6.69%
- Track Record
- 20 Years of Consecutive Dividend Growth
- Payout Ratio
- 76.0%
- Consensus Rating
- Hold
- Consensus Price Target
- $59.46 (5.1% Downside)
About Magellan Midstream Partners
Magellan Midstream Partners LP engages in the transportation, storage, and distribution of petroleum products and crude oil. It operates through the following segments: Refined Products and Crude Oil. The Refined Products segment consists of an approximately 9,800-mile refined petroleum products pipeline system with 54 terminals and two marine storage terminals.
Read More
- Share Price
- $36.77
- Dividend Yield
- 4.46%
- Track Record
- 12 Years of Consecutive Dividend Growth
- Payout Ratio
- 32.3%
- Consensus Rating
- Hold
- Consensus Price Target
- $47.33 (28.7% Upside)
About Pfizer
Pfizer Inc is a research-based global biopharmaceutical company. It engages in the discovery, development, manufacture, marketing, sales and distribution of biopharmaceutical products worldwide. The firm works across developed and emerging markets to advance wellness, prevention, treatments and cures that challenge the most feared diseases.
Read More
#6 - General Electric (NYSE:GE)
- Share Price
- $104.26
- Dividend Yield
- 0.31%
- Track Record
- 0 Years of Consecutive Dividend Growth
- Payout Ratio
- 4.2%
- Consensus Rating
- Buy
- Consensus Price Target
- $103.20 (1.0% Downside)
About General Electric
General Electric Co engages in the provision of commercial and military aircraft engines and systems, wind, and other renewable energy generation equipment and grid solutions, and gas, steam, nuclear, and other power generation equipment. It operates through the following segments: Aviation, Healthcare, Renewable Energy, and Power.
Read More
#7 - Enterprise Products Partners (NYSE:EPD)
- Share Price
- $26.20
- Dividend Yield
- 7.52%
- Track Record
- 26 Years of Consecutive Dividend Growth
- Payout Ratio
- 77.2%
- Consensus Rating
- Buy
- Consensus Price Target
- $31.00 (18.3% Upside)
About Enterprise Products Partners
Enterprise Products Partners LP operates as holding company, which engages in the production and trade of natural gas and petrochemicals. It operates through the following segments: NGL Pipelines & Services, Crude Oil Pipelines & Services, Natural Gas Pipelines & Services, and Petrochemical & Refined Products Services.
Read More
#8 - Emerson Electric (NYSE:EMR)
- Share Price
- $82.49
- Dividend Yield
- 2.53%
- Track Record
- 66 Years of Consecutive Dividend Growth
- Payout Ratio
- 25.6%
- Consensus Rating
- Buy
- Consensus Price Target
- $98.88 (19.9% Upside)
About Emerson Electric
Emerson Electric Co is a global technology and engineering company, which designs and manufactures products and delivers services that bring technology and engineering together to provide innovative solutions for customers in a wide range of industrial, commercial, and consumer markets. It operates through the following segments: Automation Solutions, AspenTech, Commercial and Residential Solutions, Climate Technologies, and Tools and Home Products.
Read More
#9 - Procter & Gamble (NYSE:PG)
- Share Price
- $153.17
- Dividend Yield
- 2.46%
- Track Record
- 68 Years of Consecutive Dividend Growth
- Payout Ratio
- 65.5%
- Consensus Rating
- Buy
- Consensus Price Target
- $161.50 (5.4% Upside)
About Procter & Gamble
Procter & Gamble Co engages in the provision of branded consumer packaged goods. It operates through the following segments: Beauty, Grooming, Health Care, Fabric & Home Care, and Baby, Feminine & Family Care. The Beauty segment offers hair, skin, and personal care. The Grooming segment consists of shave care like female and male blades and razors, pre and post shave products, and appliances.
Read More
#10 - United Parcel Service (NYSE:UPS)
- Share Price
- $170.93
- Dividend Yield
- 3.79%
- Track Record
- 14 Years of Consecutive Dividend Growth
- Payout Ratio
- 52.4%
- Consensus Rating
- Buy
- Consensus Price Target
- $193.58 (13.2% Upside)
About United Parcel Service
United Parcel Service, Inc is a package delivery company, which engages in the provision of global supply chain management solutions. It operates through the following segments: U.S. Domestic Package, International Package, and Supply Chain Solutions. The U.S. Domestic Package segment includes time-definite delivery of letters, documents, and packages.
Read More
More Investing Slideshows: