In this article, we will take a look at the 14 Best Affordable Dividend Stocks to Buy According to Analysts.
According to a report from Franklin Templeton, dividends have played a much larger role in investor returns than many people realize. From 1960 through the end of last year, about 85% of the S&P 500 Index’s total cumulative return came from reinvested dividends and the effects of compounding.
This highlights why dividend-focused strategies remain important. They can offer more stability, a steady income, and some protection during uncertain economic periods. For investors trying to build portfolios that can hold up in different environments, dividends have often provided a reliable foundation.
Market volatility tied to tariff uncertainty in the United States has pushed more investors toward dividend-paying stocks. These strategies have shown defensive qualities across different regions and time periods. For the three-year period ending December 31, 2024, dividend-paying stocks experienced lower volatility and smaller drawdowns than the broader market across global, US, and European markets. Dividend stocks also showed resilience during periods of rising inflation and interest rate concerns. Last August, when those fears resurfaced, dividend-paying companies held up better than many other parts of the market.
Interest in dividend strategies is not limited to the US. Investors globally are increasing their exposure to dividend-paying stocks. The ALPS International Sector Dividend Dogs ETF (IDOG B-) recently crossed $506 million in assets under management, according to SS&C data. This marks the first time the international dividend ETF has surpassed the $500 million level.
The growth comes as international markets deliver some of their strongest returns in years. IDOG gained 42.71% over the past 12 months through late February, according to ETF Database. During that same period, the fund attracted $99.47 million in net inflows, reflecting renewed investor interest in overseas markets after years of U.S. market dominance.
Our Methodology:
We used screeners to identify dividend stocks that are trading below a forward P/E of 18. From that list, we picked stocks with positive analyst sentiment and limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds.
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).
14. LyondellBasell Industries N.V. (NYSE:LYB)
Forward P/E Ratio: 17.89
On February 23, BMO Capital raised its price recommendation on LyondellBasell Industries N.V. (NYSE:LYB) to $38 from $36. It reiterated an Underperform rating on the stock. The analyst said management went ahead with the long-expected dividend cut to help steady the balance sheet. Even after the reduction, the analyst believes the dividend may still not be at a fully safe level. Weak demand continues to weigh on the business, which makes the current payout harder to sustain, the analyst told investors in a research note.
LyondellBasell also revised its 2030 climate and circularity targets. The update reflects tighter capital discipline and the reality of current market conditions, while keeping the company’s long-term sustainability direction in place. The company now aims to cut Scope 1 and 2 emissions by 32% from 2020 levels. It also plans to produce 800,000 metric tons of recycled and renewable-based polymers each year by 2030.
The company has already taken steps toward these goals. Its MoReTec-1 recycling plant in Germany is one example. It has also reduced emissions at key facilities and increased its use of renewable energy. CEO Peter Vanacker said the company remains focused on sustainability, but is aligning its efforts with market conditions.
LyondellBasell Industries N.V. (NYSE:LYB) is a global, independent chemical company that develops products used in everyday life, with a focus on supporting more sustainable living.
13. AbbVie Inc. (NYSE:ABBV)
Forward P/E Ratio: 16.84
On February 25, RBC Capital analyst Trung Huynh initiated coverage of AbbVie Inc. (NYSE:ABBV) with an Outperform rating and a $260 price target. The analyst noted that the shares have lagged due to concerns that AbbVie’s “beat-and-raise” story may be fading and that rising competition could slow its immunology growth.RBC does not share that view. The firm believes AbbVie is still early in expanding its treatments into new indications. Based on this outlook, the analyst expects the stock to continue outperforming.
A February 24 Reuters report said AbbVie plans to invest $380 million to build two new active pharmaceutical ingredient manufacturing facilities at its North Chicago, Illinois campus. The goal is to increase US-based production of its neuroscience and obesity drugs. The company also wants to strengthen its domestic manufacturing presence.
This decision comes at a time when many pharmaceutical companies are shifting production to the US in response to steep tariffs on imported drugs. Construction is expected to begin in spring 2026, and both facilities are scheduled to start operating by 2029. The company plans to use advanced manufacturing technologies and artificial intelligence to support future drug production.
AbbVie also expects to hire about 300 employees at the site. This investment is part of its broader plan to spend $100 billion on US research and manufacturing over the next decade. The company is also evaluating additional domestic expansion opportunities.
AbbVie Inc. (NYSE:ABBV) is a global, diversified biopharmaceutical company focused on researching, developing, manufacturing, and selling medicines and therapies.
