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.
8. Old Republic International Corporation (NYSE:ORI)
Upside Potential as of December 11: 23.9%
P/E Ratio as of December 11: 13.10
Share Price as of the Close of December 10: $43.62
Old Republic International Corporation (NYSE:ORI) is among the best low-priced dividend stocks to invest in.
On December 8, Piper Sandler analyst Paul Newsome increased the firm’s price target on Old Republic International Corporation (NYSE:ORI) to $51 from $46 with an Overweight rating on the shares. The firm noted that ORI is a reasonably priced property and casualty insurance company with a title business, which offers it room for much stronger earnings, depending on the recovery of the housing market.
Earlier in October, Old Republic International Corporation (NYSE:ORI) announced that it had executed a definitive agreement to acquire Everett Cash Mutual Insurance Co. and affiliated companies. The deal will take place after ECM converts to a stock company through a sponsored demutualization. The leading insurer of small farmowners, ECM operates in 48 states and wrote $237 million of direct written premiums in 2024. The company also boasts a record of growth and profitability.
Old Republic President & CEO, Craig R. Smiddy, made the following comment regarding the transaction:
“With ECM’s ‘narrow & deep’ expertise in the farmowners and commercial agricultural market and their commitment to underwriting excellence, there is a strong strategic and cultural fit with ORI’s portfolio of specialty companies. We welcome Randy Shaw, his team, and his customers to Old Republic and look forward to sustained profitable growth.”
Old Republic International Corporation (NYSE:ORI) is an American insurance company that offers insurance coverage to businesses, government entities, and various institutions across the US.
7. AT&T Inc. (NYSE:T)
Upside Potential as of December 11: 24.1%
P/E Ratio as of December 11: 11.04
Share Price as of the Close of December 10: $24.39
AT&T Inc. (NYSE:T) is among the best low-priced dividend stocks to invest in.
On December 10, Morgan Stanley lowered the firm’s price target on AT&T Inc. (NYSE:T) to $30 and $32 and kept an Overweight rating on the shares. The update came as part of the firm’s broader coverage of the US wireless industry.
AT&T Inc. (NYSE:T) is actively investing in infrastructure and is strengthening its competitive position. The company recently acquired EchoStar’s spectrum in a deal worth $23 billion and also announced a $5.75 billion deal for Lumen Technologies’ fiber assets, which the company now expects to close in early 2026. Through the EchoStar deal, which delivered midband spectrum, AT&T could add network capacity.
The Lumen Technologies deal will enable AT&T Inc. (NYSE:T) to expand its reach to 60 million fiber locations by the end of the decade. It adds about 4 million homes for $1,300 per location, which falls below typical construction costs. Not only this, these transactions are expected to drive long-term growth in the company’s service revenue, adjusted EBITDA, and strong free cash flow generation.
AT&T Inc. (NYSE:T) is an American multinational telecommunications company that offers 5G wireless voice and data services to consumers and businesses.
6. HF Sinclair Corporation (NYSE:DINO)
Upside Potential as of December 11: 25.4%
P/E Ratio as of December 11: 9.56
Share Price as of the Close of December 10: $49.78
HF Sinclair Corporation (NYSE:DINO) is among the low-priced stocks to buy now, according to analysts.
On December 8, HF Sinclair Corporation (NYSE:DINO) announced that one of its subsidiaries signed a definitive deal to buy Industrial Oils Unlimited (IOU) for $38 million, which includes about $15 million in working capital. The price works out to an expected 2027 EBITDA multiple of roughly 3.5x once synergies are factored in.
Bringing IOU into the fold, which is the company known for its long track of value-added service, tailored solutions, and its well-regarded DX brand, is expected to bolster HF Sinclair Corporation (NYSE:DINO)’s position as an innovator in the lubricants and specialty fluids market.
A day later, on December 9, HF Sinclair Corporation (NYSE:DINO) outlined its capital spending plans, guiding to $775 million, about 11% lower than what it expects to spend this year. The reduction mainly reflects lower maintenance needs. US refineries have been leaning heavily on maintenance after running flat out in 2022 due to supply constraints tied to Russia’s invasion of Ukraine. With turnaround and catalysts costs projected at about $325 million for 2026, down from $410 million expected for 2025, HF Sinclair Corporation (NYSE:DINO) sees room to scale back overall spending.
For 2026, HF Sinclair Corporation (NYSE:DINO) expects to spend around $225 million on its refining segment, slightly below this year’s projected $240 million.
HF Sinclair Corporation (NYSE:DINO) is an American petroleum refinery company that specializes in products such as gasoline, diesel fuel, jet fuel, and others.
5. Fifth Third Bancorp (NASDAQ:FITB)
Upside Potential as of December 11: 25.6%
P/E Ratio as of December 11: 11.19
Share Price as of the Close of December 10: $47.55
Fifth Third Bancorp (NASDAQ:FITB) is among the best low-priced dividend stocks according to analysts.
On December 10, Piper Sandler lifted its price target on Fifth Third Bancorp (NASDAQ:FITB) to $50 from $48 and reiterated an Overweight rating on the shares after the bank filed the presentation it plans to share at an upcoming industry conference. For Q4, management nudged fee guidance slightly lower but improved its expense outlook. The bank didn’t spell out the reasoning, though Piper Sandler suspects a few capital markets deals may have shifted into early Q1.
On December 9, Fifth Third Bancorp (NASDAQ:FITB) announced a new partnership naming Brex as the provider of its commercial cards and expense management tools for its business clients. The offering will run on Brex’s embedded payments platform, which allows banks to issue corporate cards and automate expense reporting with the help of AI. The move highlights how some banks are opting to team up with fintech players rather than build their own technology from scratch as client expectations rise.
Fifth Third Bancorp (NASDAQ:FITB) is also in the middle of acquiring Comerica, a transaction that would make it the ninth-largest bank in the country, with roughly $288 billion in assets.
4. Hewlett Packard Enterprise Company (NYSE:HPE)
Upside Potential as of December 11: 29.8%
P/E Ratio as of December 11: 10.58
Share Price as of the Close of December 10: $25.26
Hewlett Packard Enterprise Company (NYSE:HPE) is among the best low-priced dividend stocks to invest in.
On December 10, Argus bumped its price target on Hewlett Packard Enterprise Company (NYSE:HPE) to $30 from $25 while keeping a Buy rating on the shares. The company missed Wall Street’s revenue estimates in Q4 after an unexpected slowdown in server sales, but Argus thinks that the weakness is temporary and expects the segment to rebound in FY26. The firm also highlighted that HPE seems inexpensive at current valuations and doesn’t fully reflect the company’s potential for stronger growth, especially as it finds more ways to plug into the fastest-growing AI market.
Hewlett Packard Enterprise Company (NYSE:HPE) made headlines on December 4 when the company announced earnings for fiscal Q4 2025, delivering $9.7 billion in revenues, up 14% from a year ago. Its annualized revenue run rate reached $3.2 billion, a 63% jump from last year. Management said the Juniper Networks acquisition and the continued scaling of its AI and cloud business, coupled with faster innovation across its lineup, all helped build momentum heading into FY26.
The quarter also showed improvement in cash generation, with operating cash flow rising to $2.5 billion and free cash flow reaching $1.9 billion. HPE returned $271 million to shareholders through dividends and buybacks.
In other news, Hewlett Packard Enterprise Company (NYSE:HPE) and Nvidia unveiled a new AI factory lab on December 1 in Grenoble, France, giving customers a place to test and validate performance on EU-based infrastructure, an increasingly important need as companies navigate data-sovereignty and regulatory rules. The two companies also expanded their AI factory offerings to include HPE Junior Networking on-ramp and data center interconnection solutions, powered by the HPE MX and PTX high-speed routing platform.
Hewlett Packard Enterprise Company (NYSE:HPE) is a global IT provider known for its servers, storage systems, networking solutions, hybrid-cloud offerings, and consulting services.
3. International Paper Company (NYSE:IP)
Upside Potential as of December 11: 29.9%
P/E Ratio as of December 11: 17.09
Share Price as of the Close of December 10: $39.12
International Paper Company (NYSE:IP) is one of the best low-priced dividend stocks to invest in.
On December 5, JPMorgan analyst Detlef Winckelmann trimmed his price target on International Paper Company (NYSE:IP) to $46 from $48 while maintaining a Neutral stance. He noted that with excess supply “looming in almost every market across almost every product grade,” the setup for 2026 looks challenging for the broader paper and packaging space. Even so, he pointed out that the US corrugated packaging market is going through a structural capacity reset that should help keep pricing supported in 2026.
International Paper Company (NYSE:IP)’s latest move lines up with that view. Earlier in November, the company said that it would shut down two US packaging plants by January as part of its ongoing cost-cutting and consolidation efforts amid softer demand. The closures affect facilities in Compton, California, and Louisville, Kentucky, and will impact approximately 218 employees. Production from those sites will be shifted to nearby locations.
International Paper Company (NYSE:IP) has been restructuring its business throughout the year. After acquiring UK-based DS Smith, the company continued to streamline its portfolio by selling its global cellulose fibers unit to American Industrial Partners for $1.5 billion in August, a move aimed at sharpening its focus on sustainable packaging.
International Paper Company (NYSE:IP) is a major global player in packaging and paper, with a core business built around corrugated packaging, industrial papers, and consumer packaging.
2. Comcast Corporation (NASDAQ:CMCSA)
Upside Potential as of December 11: 35.3%
P/E Ratio as of December 11: 6.55
Share Price as of the Close of December 10: $27.5
Comcast Corporation (NASDAQ:CMCSA) is one of the best low-priced stocks to invest in now, according to analysts.
Morgan Stanley analyst Benjamin Swinburne on December 10 cut his price target on Comcast Corporation (NASDAQ:CMCSA) to $31 from $32 but maintained an Equal Weight rating. He pointed out that fixed wireless net additions could pick up in 2026 as AT&T widens its reach, while fiber growth is expected to stay strong. With that backdrop, he slightly lowered his target on Comcast’s shares.
Separately, Comcast Corporation (NASDAQ:CMCSA)’s Xfinity unit announced on December 10 that it is rolling out new national video plans with all-in pricing. The goal is to make things simpler and more transparent for customers while offering solid value. The plans are open to both new and existing customers and include an X1 4K TV box and Comcast’s award-winning voice remote, making it easier to find and watch content across platforms. When paired with Xfinity’s new national Internet plans, which now include a year of unlimited mobile service, customers could save over $70 a month for a year compared to AT&T and Verizon.
Steve Croney, Chief Operating Officer and incoming Chief Executive Officer, Connectivity & Platforms, Comcast, made the following comment:
“Like we did with Xfinity Internet, we’ve simplified and reimagined our video packages, making it easy and hassle-free for our customers to enjoy great content on the best and most innovative entertainment experience.”
Comcast Corporation (NASDAQ:CMCSA) is one of the leading US players in media, entertainment, and communications, offering services across several well-known brands.
1. The Mosaic Company (NYSE:MOS)
Upside Potential as of December 11: 44.9%
P/E Ratio as of December 11: 7.94
Share Price as of the Close of December 10: $23.75
The Mosaic Company (NYSE:MOS) is one of the best low-priced dividend stocks to invest in.
On December 10, RBC cut its price target on The Mosaic Company (NYSE:MOS) to $27 from $30 and maintained a Sector Perform rating on the shares. The update was tied to a broader look at what 2026 might look like for fertilizer companies. The firm expects the overall ag and fertilizer backdrop to stay healthy next year, with steady demand and not much new supply coming online. Still, while Mosaic is working on improving its phosphate operations, the analyst thinks those gains are being offset by softer prices and lower input costs.
In its Q3 2025 earnings report, The Mosaic Company (NYSE:MOS) highlighted that its operations in Brazil continue to stand out. Adjusted EBITDA improved from last year, and the company said it’s handling a difficult credit environment fairly well. Management also locked in $150 million in early cost savings and remains confident about hitting its revised $250 million cost-cutting goal by the end of 2026. Those savings are being driven by automation, supply chain improvements, and better absorption of fixed costs as production increases.
The Mosaic Company (NYSE:MOS)’s revenue for the quarter grew by 22% YoY at $3.45 billion. Net income jumped to $411 million compared with $122 million last year. Adjusted EBITDA climbed to $806 million from $448 million, fueled by higher prices across all segments and another strong performance from Mosaic Fertilizantes.
The Mosaic Company (NYSE:MOS) is one of the leading global producers of essential crop nutrients, with its business centered on potash and phosphate.
While we acknowledge the potential of MOS 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 MOS and that has 100x upside potential, check out our report about this cheapest AI stock.
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