In this article, we will take a look at some of the best low-priced stocks to buy now.
Wall Street finished higher on December 10 after the Federal Reserve cut interest rates by a quarter percentage point, a decision widely expected among investors. Many traders are already projecting more easing later on, even though the central bank signaled its plans to pause additional cuts for the time being.
Despite the upbeat reaction, the market is somehow in doldrums. Valuations are extremely stretched and beginning to sound a lot like the dot-com era. Bloomberg reported that the US stock market has tripled to $70 trillion since the start of the pandemic, and more than half of the American households are now exposed to it in some form. This surge has created a strong sense of the “wealth effect,” which is helping support consumer spending, which accounts for about two-thirds of the economy. The rally is also driving massive investments in AI, and some economists believe this spending is one of the reasons the economy has avoided a recession.
Within this environment, value stocks are starting to look more attractive. Morningstar noted that value and core stocks outperformed growth stocks in November. The Morningstar US Value Index rose 3.06%, the US Core Index gained 2.32%, while the US Growth Index declined 2.37%.
Analysts are also paying attention to the shift. Charles Rotblut, vice president of the American Association of Individual Investors, pointed out that investors have often chased exciting new technologies in the past. Eventually, those prices tended to fall, and undervalued companies returned to the spotlight. He said it is unclear when that might happen this time. Even so, markets move in cycles and history often repeats itself.
Given this, we will take a look at some of the best low-priced dividend stocks to invest in.
Our Methodology
For this list, we used a screener to identify dividend stocks with a strong balance sheet and sound financials. From that list, we shortlisted stocks trading at less than $50, as of the close of December 10, and those having a forward P/E of less than 20x as of December 11. Next, we narrowed our list by selecting the ones in which analysts see at least 20% upside and ranked them accordingly.
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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
11. Advance Auto Parts, Inc. (NYSE:AAP)
Upside Potential as of December 11: 21.2%
P/E Ratio as of December 11: 18.18
Share Price as of the Close of December 10: $47.73
Advance Auto Parts, Inc. (NYSE:AAP) is one of the best low-priced stocks to invest in.
On December 10, Evercore ISI reduced the firm’s price target on Advance Auto Parts, Inc. (NYSE:AAP) to $58 from $60 and maintained an In Line rating. The update came as part of the firm’s broader coverage of the sector.
Advance Auto Parts, Inc. (NYSE:AAP) recorded its best quarter in over two years, fueled by 3% comparable sales growth across its Pro and DIY channels, as well as a 370 basis point YoY increase in adjusted operating margin to 4.4%. The company expects approximately 200 basis points of margin expansion for FY25.
Advance Auto Parts, Inc. (NYSE:AAP) is also rolling out a new assortment framework across its 50 biggest markets, which together make up about 70% of its sales. The company plans the opening of 14 market hubs this year, including 10 conversions and 4 greenfield locations. These openings would take the total to 33 locations by the end of the year. In addition, the company reshaped its debt structure by raising nearly $2 billion in cash to enhance its liquidity.
Advance Auto Parts, Inc. (NYSE:AAP) is an American provider of automotive aftermarket parts, offering services to professional installers and DIY customers.
10. Coterra Energy Inc. (NYSE:CTRA)
Upside Potential as of December 11: 22.5%
P/E Ratio as of December 11: 9.95
Share Price as of the Close of December 10: $27.08
Coterra Energy Inc. (NYSE:CTRA) is among the best low-priced dividend stocks to invest in.
On November 26, William Blair analyst Neal Dingmann initiated coverage on Coterra Energy Inc. (NYSE:CTRA) with an Outperform rating and a $37 price target. According to the firm, the company offers multi-basin exposure to the Permian and Marcellus. In addition, the firm noted that the company is in a position to resume “material” shareholder returns, considering its “pristine” balance sheet and capacity to produce free cash flow. The analyst, in his research note, mentioned that Coterra might look to sell its mid-continent assets to help finance another Permian deal.
Coterra Energy Inc. (NYSE:CTRA), in its earnings report for Q3, highlighted strong operational execution, which enables it to achieve its annual targets. In the Permian program, the company’s nine rig and three completion crew program remained capital efficient and is currently generating solid returns. During the quarter, total BOE (barrels of oil equivalent), natural gas production, and oil production reached the higher end of their guidance. For 2025, the company has increased its guidance for natural gas production.
Coterra Energy Inc. (NYSE:CTRA) expects capital expenditures to be around $2.3 billion, assuming the continuation of nine rigs in the Permian, one to two rigs in the Marcellus, and one rig in the Anadarko during the fourth quarter. The company’s cash flow guidance is also optimistic, expecting to generate $2 billion in free cash flow at recent strip prices. This seems achievable as the company has already returned $168 million to shareholders through dividends in the most recent quarter.
Coterra Energy Inc. (NYSE:CTRA) is a Texas-based exploration and production company with operations in the Permian Basin, Marcellus Shale, and Anadarko Basin.
9. Verizon Communications Inc. (NYSE:VZ)
Upside Potential as of December 11: 23.7%
P/E Ratio as of December 11: 8.31
Share Price as of the Close of December 10: $39.92
Verizon Communications Inc. (NYSE:VZ) is among the best low-priced dividend stocks according to analysts.
On December 10, Morgan Stanley analyst Benjamin Swinburne reduced the firm’s price target on Verizon Communications Inc. (NYSE:VZ) to $47 from $48 and kept an Equal Weight rating on the shares. The analyst, in his research note, highlighted that the US wireless market is highly concentrated, which supports a “healthy growth environment” for other companies in the sector as well. However, the firm is dialing back its estimates for VZ as the carrier enters 2026 with a strategy centered on defending market share.
In the third quarter of 2025, Verizon Communications Inc. (NYSE:VZ) grew its wireless revenue by 2.1% to $21 billion, an industry-leading figure. Its total revenues were even better, coming in at $33.8 billion, up 1.47% from the same period last year. The company’s broadband connections also grew by 11.1% to 13.2 million in Q3.
That said, Verizon Communications Inc. (NYSE:VZ) has been struggling over the years due to high debt levels and competition from its peers. Though the company has decreased its total unsecured debt at the end of Q3 from $126.4 billion to $119.7 billion, it has affected its dividend growth over the years, which has averaged nearly 2%. In the first nine months, Verizon’s operating cash flow was $28 billion, and its free cash flow came in at $15.8 billion, which showed growth from the previous year.
On December 4, Verizon Communications Inc. (NYSE:VZ) declared a quarterly dividend of $0.69 per share, which was in line with its previous dividend. Overall, it has been rewarding investors with growing dividends for the past 19 consecutive years.
Verizon Communications Inc. (NYSE:VZ) is an American telecommunications company that specializes in wireless networks.
