In this article, we will take a look at some of the best affordable dividend stocks.
With the Federal Reserve moving toward rate cuts, dividend-paying stocks could attract renewed interest from investors. Still, not all approaches deliver the same results. The Franklin Templeton Equity Income Fund (FISEX) takes a selective path, targeting high-quality businesses that also generate income. Morningstar has given the fund a four-star rating, and it ranks among the top performers in total returns both this year and last. Matt Quinlan, who oversees the Franklin Equity Income strategy, explained that the team looks for “companies that are leaders” — firms consistently investing, innovating, and expanding to make their business models stronger and more resilient over time.
Morgan Stanley also noted that dividends can help steady portfolios during uncertain periods. Strategist Todd Castagno wrote in an August 14 report that, when risks are high and valuations stretched, dividends can soften volatility and support stock prices. In a slower growth setting with falling interest rates, reliable dividends become even more appealing since cash and bonds lose some of their yield advantage. However, investors are often cautioned against chasing only the highest yields, as those may signal trouble within a company. Instead, the focus is often on firms that can steadily grow their payouts.
Echoing Warren Buffett’s long-held view, many seasoned investors also prefer to buy shares of solid companies that the market undervalues — businesses trading below their true worth but with durable fundamentals to deliver returns over the long haul. Given this, we will take a look at some of the best affordable dividend stocks to buy now.
Our Methodology
To create this list, we screened for dividend stocks with a forward P/E ratio under 16, as of October 2. Then, we picked companies from that list that have a reliable history of paying dividends consistently to their shareholders. The stocks are ranked according to their forward P/Es.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
11. Exxon Mobil Corporation (NYSE:XOM)
Forward P/E as of October 2: 15.82
Exxon Mobil Corporation (NYSE:XOM) is an American energy company. It is using artificial intelligence to increase the effectiveness of its work and eventually grow its business.
For example, Exxon Mobil Corporation (NYSE:XOM) has been utilizing machine learning in the past few years to avoid the breakdown of its equipment, raise production levels, and make the process more efficient through automation. It is making the company’s work much easier, and also, the parts of the drilling process that are left are being automated. The intention is that the final stage is the completely automatic drilling where the AI systems can select the most appropriate parameters and, in certain instances, carry out the drilling by themselves, if allowed.
On top of that, Exxon Mobil Corporation (NYSE:XOM) makes use of AI to control the enormous quantities of data the company generates and to avoid ‘data silos’. As machine learning capabilities evolve, both ExxonMobil and other oil majors will be willing to implement these tools more and more.
Furthermore, Exxon Mobil Corporation (NYSE:XOM) is also regarded as a dependable dividend payer and has been increasing its dividend for 42 consecutive years. It offers a quarterly dividend of $0.99 per share, with a dividend yield of 3.51%, as of October 2.
10. JPMorgan Chase & Co. (NYSE:JPM)
Forward P/E as of October 2: 15.62
JPMorgan Chase & Co. (NYSE:JPM) is the most profitable bank out of the big four in the US and is ranked first by both market capitalization and total assets in the whole country. The company announced on September 17 a 7.1% increase in its quarterly dividend to $1.50 per share. It has been giving dividends to shareholders regularly for many years. As of October 2, the stock offers a 1.95% dividend yield. JPM is one of the best dividend stocks to invest in.
JPMorgan Chase & Co. (NYSE:JPM) business is nearly as detailed as it cuts credit cards, raises auto loans, and in the last few years has grown considerably across commercial and investment banking. Besides, the bank has been very energetic in new technology adoption and has made a lot of fintech (financial technology) company investments.
In addition to the huge Chase consumer banking unit, JPMorgan Chase & Co. (NYSE:JPM) is also one of the largest investment banks in the country.
9. Archer-Daniels-Midland Company (NYSE:ADM)
Forward P/E as of October 2: 13.12
Archer-Daniels-Midland Company (NYSE:ADM) is the leading global provider of agricultural processing and trading products, including ingredients for food, animal feed, and biofuels. The company not only farms key crops such as soybeans, corn, and wheat, but it also paces innovation. The company’s achievements include the invention of textured vegetable protein and contributions to high-fructose corn syrup, ethanol, and Omega-3 fatty acids.
Archer-Daniels-Midland Company (NYSE:ADM) is among the world’s largest companies by revenue, as its 2024 revenue stands at $86 billion. The company has been paying dividends for 93 consecutive years. In addition, it remains a Dividend King with 51 consecutive years of dividend raises. Currently, it pays a quarterly dividend of $0.51 per share and has a dividend yield of 3.44%, as of October 2.
Archer-Daniels-Midland Company (NYSE:ADM) experienced consistent profit growth from 2016 to 2022, anchored by strong demand for crops and biofuels. More recently, its profits have been squeezed by deteriorating crush margins in processing soybeans, softer demand in its nutrition unit, and uncertainty over biofuel regulations.
Nevertheless, Archer-Daniels-Midland Company (NYSE:ADM)’s sheer size and the fact that it is vertically integrated offer it a significant competitive advantage. With demand for food and biofuels worldwide increasing, the company has good potential for consistent long-term growth.
8. Portland General Electric Company (NYSE:POR)
Forward P/E as of October 2: 12.74
Portland General Electric Company (NYSE:POR) is a publicly traded utility company based in Oregon. The company is mainly involved in the production, transmission, and distribution of electricity. The stock has the potential to provide returns, and at the same time, it carries the risk of loss. Among the issues is the company’s location on the West Coast, where the danger of forest fires is always present. Nevertheless, the firm is also the beneficiary of serving a region that is of strategic importance, as it is home to the main international subsea communication cable landings. This factor makes PGE a very interesting utility for data centers and tech firms, especially in the area of Oregon’s “Silicon Forest”.
Portland General Electric Company (NYSE:POR) announced its earnings for the second quarter of 2025 in July. The revenue of the company reached the mark of $807 million, representing a 6.4% bump compared to the same quarter in the previous year. The up-and-down situation really came from the bounce of the demand from data center customers. Industrial load increased 16.5% quarter-over-quarter. Good progress was made in a number of areas, along with the rapid recovery of the Seaside battery, distribution system upgrade, and changes to the holding company structure. PGE also confirmed its adjusted earnings forecast for 2025, predicting earnings of $3.13 to $3.33 per diluted share.
Portland General Electric Company (NYSE:POR) pays a solid dividend. The company’s quarterly dividend comes in at $0.525 per share. For the last 19 years, it has been rewarding its shareholders with increasing dividends, thus making POR one of the best dividend stocks. As of October 2, the stock has a dividend yield of 4.89%.
7. The J. M. Smucker Company (NYSE:SJM)
Forward P/E as of October 2: 12.18
The J. M. Smucker Company (NYSE:SJM) is a producer and marketer of food and beverages, headquartered in Ohio. The company is under the radar for many dividend investors, but it is starting to gain some traction due to its improving balance sheet and track record of paying reliable dividends to shareholders.
The J. M. Smucker Company (NYSE:SJM) raised its free cash flow forecast for fiscal year 2026 by $100 million. The business now anticipates producing $975 million in free cash flow for the year, which it intends to use to pay down debt and bolster its balance sheet.
The J. M. Smucker Company (NYSE:SJM) raised its quarterly dividend by 1.9% on July 16. It was the company’s 24th straight year of dividend growth. The company’s quarterly dividend now comes in at $1.10 per share and has a dividend yield of 4.07%, as of October 2.
6. Bank of America Corporation (NYSE:BAC)
Forward P/E as of October 2: 12.11
Bank of America Corporation (NYSE:BAC) is an American multinational investment bank and financial services holding company, headquartered in North Carolina. It has grown rapidly, lending money at a rate that could outpace many of its competitors in the industry. Meanwhile, it has also bolstered efficiency by enhancing its digital platforms.
While soaring interest rates have proven challenging, Bank of America Corporation (NYSE:BAC)’s enduring profitability has enabled it to weather these crosswinds. As rates stabilize and consumer confidence rebounds, the bank stands to profit. Its wide-ranging businesses, including retail banking and investment banking, also make it more stable in times of market volatility.
Bank of America Corporation (NYSE:BAC) is also dedicated to transforming the future of banking, and while that makes it an intriguing choice for dividend investors, its strong financial position and access to low-cost capital further sweeten the deal. The bank has been steadily raising its dividends for 11 years now, and it currently pays a quarterly dividend of $0.28 per share. The stock has a dividend yield of 2.22%, as of October 2.
5. Enterprise Products Partners L.P. (NYSE:EPD)
Forward P/E as of October 2: 10.76
Enterprise Products Partners L.P. (NYSE:EPD) is one of the largest midstream oil and gas operators in North America. The critical connection between upstream production and downstream refining and chemical processing is provided by the midstream portion of the energy industry. It just operates the pipeline as a toll road between the two labor unions.
Midstream businesses are different from upstream and downstream operations that are largely reactive to commodity prices. Because we live in a world where energy is required, the services Enterprise Products Partners L.P. (NYSE:EPD) offers are nevertheless in consistent demand, no matter how much oil prices rise or fall. Such reliable cash flows lend support to its distributions, which the firm has raised annually for the past 27 years.
With an investment-grade balance sheet and distributable cash flow coverage at 1.7 times the payout, there is even more upside to be had from here for Enterprise Products Partners L.P. (NYSE:EPD) to grow its dividend. That large margin absorbs the threat of a distribution cut, and it also makes those shares super appealing for income-focused conservative investors. The company currently pays a quarterly dividend of $0.545 per share and has a dividend yield of 7.01% as of October 2.
4. Manulife Financial Corporation (NYSE:MFC)
Forward P/E as of October 2: 9.88
Manulife Financial Corporation (NYSE:MFC) is a Canadian multinational insurance company that provides various related services and products to its consumers. An insurance company is generally a big winner in an environment of rising interest rates. The reason is that they usually invest a large part of their money in bonds and other fixed-income instruments. When rates go up, the yields on new bonds become attractive, and this leads to an increase in the investment income of the company and the general profitability of dividend-paying insurers.
Manulife Financial Corporation (NYSE:MFC) is a good pick for investors who want the best of both worlds – the reliability of the insurance business and the advantage of global diversification. The company, which is present in Canada, the US, and Asia, is therefore able to maintain steady profits no matter the pace of the economic cycle.
Manulife Financial Corporation (NYSE:MFC) is set to make great strides in Asia since the region is an untapped insurance market, but the demand is growing quite rapidly. Not only that, this growth potential acts as a stabilizer for the American market, turning dividends and capital gain into the stay of the long-term game.
The latest updates show clearly this power. Manulife Financial Corporation (NYSE:MFC) posted $1.9 billion in core earnings, which marked a 14% increase from the previous year. The company made a profit of $1.7 billion, and the new business value increased by 18%, mainly supported by the strong and rising demand from the Asian markets.
Moreover, Manulife Financial Corporation (NYSE:MFC) is one of the best dividend-paying companies, as it has been increasing its dividend for 12 consecutive years. The company gives a quarterly dividend of C$0.44 per share and has a dividend yield of 4.08%, as recorded on October 2.
3. First American Financial Corporation (NYSE:FAF)
Forward P/E as of October 2: 9.38
First American Financial Corporation (NYSE:FAF) stands as a leading provider of title insurance, offering protection to real estate buyers and lenders against ownership disputes and other legal complications during property transactions. Alongside this, the company offers settlement services, home warranty plans, trust banking, and data and analytics solutions related to real estate. The company´s main revenue comes from the number of transactions of residential and commercial properties, which is quite a volatile parameter influenced by interest rates and the general state of the economy.
Over the past few years, First American Financial Corporation (NYSE:FAF) has revamped its image through technology and modernization. It has been making investments in its digital transformation, automation, and has also been launching new title and escrow platforms like Endpoint and Sequoia, which are presently going through initial market introduction phases. The company sets out to drive its customer base to lower expenses, higher productivity, and a much better, quicker, and, most importantly, friction-free transaction process.
Moreover, First American Financial Corporation (NYSE:FAF) is a reliable shareholder-friendly company with a strong record of paying dividends. On September 10, the board of directors raised the quarterly dividend by 1.9% to $0.55 per share, marking the 14th consecutive year of dividend increases. As of October 2, the stock offers a dividend yield of 3.45%.
2. Bristol-Myers Squibb Company (NYSE:BMY)
Forward P/E as of October 2: 7.32
Bristol-Myers Squibb Company (NYSE:BMY) is an American pharmaceutical giant that operates in multiple countries and is based in New Jersey. In the second quarter, the company’s growth portfolio recorded double-digit sales, and at least seven products recorded more than 20% sales increase. Among them, cancer cell therapy Breyanzi has more than doubled its sales in the period.
In the quarters ahead, investors can look forward to surging sales of Cobenfy. This new schizophrenia treatment earned approval from the Food and Drug Administration last September, and sales are expected to reach $2.6 billion by 2030.
This year, the big pharma company expects earnings to land in a range between $6.35 and $6.65 per share. That’s heaps more than it needs to meet a dividend commitment currently set at an annualized $2.48 per share. With a strong lineup of new products to offset losses due to upcoming patent expirations, its high-yield dividend could keep growing for at least another decade.
Bristol-Myers Squibb Company (NYSE:BMY) has raised its dividends for 16 consecutive years. The company pays a per-share dividend of $0.62 every quarter and has a dividend yield of 5.39%, as of October 2.
1. Comcast Corporation (NASDAQ:CMCSA)
Forward P/E as of October 2: 7.28
Comcast Corporation (NASDAQ:CMCSA) is an American multinational mass media, entertainment, and telecommunications company. IT has grown into one of the most wide-ranging names in media and telecommunications. In the US, its Xfinity brand is the largest provider of both pay television and residential internet, while in Europe, its Sky division holds the top spot in pay-TV. The company’s reach extends across broadcast and cable channels, as well as live-action and animated film production.
Comcast Corporation (NASDAQ:CMCSA)’s portfolio also includes Peacock, a subscription-based streaming service, and Comcast Spectacor, which focuses on sports and entertainment in the Philadelphia region. Beyond media, the company oversees four Universal Studios theme parks located across different parts of the world.
Looking ahead, Comcast Corporation (NASDAQ:CMCSA) intends to reorganize its portfolio by spinning off most of its cable networks into a new company, Versant, by the close of 2025. Versant will encompass NBCUniversal’s cable channels alongside digital platforms such as Fandango and Rotten Tomatoes. Meanwhile, Comcast will retain ownership of the NBC broadcast network, its television and film studios, the theme parks, Peacock, and the Bravo network.
Comcast Corporation (NASDAQ:CMCSA) has built a solid track record when it comes to rewarding shareholders. The company has raised its dividend for 21 straight years, making it a reliable choice for income-focused investors. At present, it distributes a quarterly dividend of $0.33 per share. As of October 2, the stock has a yield of 2.30%.
While we acknowledge the potential of CMCSA to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CMCSA and that has 100x upside potential, check out our report about this cheapest AI stock.
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