In this article, we will take a look at some of the best cheap quarterly dividend stocks.
Dividend investing is a strategy popular with both beginners and experienced investors, centered on creating steady income through regular dividend payments. By relying on distributions from established companies, it provides a consistent cash flow that can supplement or eventually replace other income sources. Unlike growth investing, which emphasizes price appreciation, dividend investing combines income generation with the potential for long-term gains, making it attractive for those aiming for both stability and growth.
The advantages go beyond a predictable income stream. Dividends can act as a hedge against inflation, since many companies raise payouts at a pace that outstrips rising costs, helping preserve purchasing power. When dividends are reinvested, they can also accelerate portfolio growth through compounding, as the additional shares purchased generate their own future dividends.
Dividend-paying stocks often add resilience to a portfolio. They tend to be less volatile than stocks without dividends, offering some protection during market downturns. Companies that sustain or grow their dividends in challenging times also show financial strength, which can increase investor confidence. Given this, we will take a look at some of the best cheap quarterly dividend stocks.
Our Methodology
For this list, we screened for dividend companies with strong dividend histories and yields of at least 1%, as of September 23. From that list, we picked dividend stocks with forward P/E ratios below 16, as of September 23. The low price-to-earnings ratio shows that they are traded below their intrinsic value. The stocks are ranked in descending order of their P/E multiples.
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. Cardinal Health, Inc. (NYSE:CAH)
Forward P/E as of September 23: 15.75
Cardinal Health, Inc. (NYSE:CAH) is a major distributor of branded and generic drugs, medical supplies, laboratory products, and supply chain services for healthcare providers. It serves more than 90% of hospitals in the US and has operations in over 30 countries.
Cardinal Health, Inc. (NYSE:CAH) is also well-regarded as a dividend payer, having raised its payout for 39 straight years, which makes it one of the best dividend stocks. With a payout ratio at only about one-fourth of this year’s expected earnings, there is significant room for further increases. Analysts anticipate earnings growth of nearly 11% annually over the next three to five years, which could support continued dividend expansion.
Cardinal Health, Inc. (NYSE:CAH) currently offers a quarterly dividend of $0.5107 per share and has a dividend yield of 1.32%, as of September 23.
10. Aflac Incorporated (NYSE:AFL)
Forward P/E as of September 23: 14.75
Aflac Incorporated (NYSE:AFL) is an American insurance company, and its main business focuses on supplemental health and life insurance. It is especially recognized for policies that provide cash benefits directly to policyholders, such as cancer, medical, and accident coverage in Japan, and accident, critical illness, dental, and disability insurance in the U.S. Japan is a vital market for the company, where it is the largest provider of cancer and medical insurance products, mainly through “third sector” plans, which refer to health-related coverage outside of government programs.
Aflac Incorporated (NYSE:AFL)’s long-term success is driven by its focus on product innovation, strong partnerships in Japan, and ongoing investments in technology and digital transformation in the US. These initiatives, along with disciplined capital allocation such as share repurchases and steady dividend growth, reinforce the company’s overall financial strength.
Aflac Incorporated (NYSE:AFL) is one of the best cheap quarterly dividend stocks, as the company has raised its payouts for 42 years in a row. The company offers a quarterly dividend of $0.58 per share and has a dividend yield of 2.14%, as of September 23.
9. Carlisle Companies Incorporated (NYSE:CSL)
Forward P/E as of September 23: 13.85
Carlisle Companies Incorporated (NYSE:CSL) designs and produces a variety of energy-efficient and sustainable products for both commercial and residential buildings. Its core divisions, Carlisle Construction Materials (CCM) and Carlisle Weatherproofing Technologies (CWT), provide roofing systems, architectural metals, insulation, and weatherproofing solutions.
Carlisle Companies Incorporated (NYSE:CSL) drives growth through energy-efficient innovation, strategic acquisitions, and execution under its Carlisle Operating System, while success also hinges on construction market trends, pricing, and integration of acquisitions.
On August 7, Carlisle Companies Incorporated (NYSE:CSL) declared a 10% hike in its quarterly dividend to $1.10 per share. This marked the company’s 49th consecutive year of dividend growth. As of September 23, the stock has a dividend yield of 1.58%.
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