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.
12. Genuine Parts Company (NYSE:GPC)
Forward P/E Ratio: 16.42
CNBC reported on February 24 that Raymond James expects a planned business separation to help unlock value for Genuine Parts Company (NYSE:GPC) shares. The firm double upgraded the automotive parts distributor to Strong Buy from Market Perform. Analyst Sam Darkatsh also set a $145 price target, which implies about 25% upside from current levels. He believes the stock’s recent weakness has created a more favorable setup for investors. In his view, the stock “trades well below implied fair value.” The analyst made the following statement:
“GPC is undergoing a strategic transformation via the separation of its automotive (NAPA) and industrial (Motion Industries), which operationally run mostly independently of each other. GPC shares are off ~20% since the 4Q print despite announcing the separation of its Auto and Industrial businesses. We now view the setup as constructively asymmetric based on conservative sum-of-the-parts math.”
Darkatsh also pointed to what he described as a “clear timeline to value creation.” The company expects to complete the separation by the first quarter of 2027. He added that investor days are planned for both businesses in the second half of 2026. These events could help investors better assess each unit and support improved valuation. The analyst noted that sentiment could remain pressured in the near term. Some dividend-focused investors may rotate out, and automobile demand remains soft. Even so, he observed that industrial data have shown signs of improvement in recent periods. He said:
“Near-term sentiment may be pressured by a soft automotive end-market, but we believe investors will better realize GPC’s value as the targeted completion of the separation approaches (1Q27).”
Genuine Parts Company (NYSE:GPC) operates as a global provider of automotive and industrial replacement parts. It also offers value-added services through its two main segments, Automotive Parts Group and Industrial Parts Group.
11. Aflac Incorporated (NYSE:AFL)
Forward P/E Ratio: 16.42
On February 25, Wells Fargo analyst Elyse Greenspan raised the firm’s price recommendation on Aflac Incorporated (NYSE:AFL) to $118 from $109. Itreiterated an Equal Weight rating on the shares. The firm said that after reviewing fourth-quarter guidance across the sector, it is lowering EPS estimates for many companies, as outlooks mostly came in at or below consensus expectations. Wells Fargo is also updating its valuation approach. The firm is now shifting its models to reflect 2027 EPS and introducing new 2028 EPS estimates as part of its longer-term outlook.
During the Q4 2025 earnings call, Chairman and CEO Daniel Amos highlighted the company’s financial strength. He said net earnings reached $2.64 per diluted share in the fourth quarter, while adjusted earnings came in at $1.57 per diluted share. He pointed to strong momentum in Aflac Japan. Sales increased 15.7% in the fourth quarter and rose 16% for the full year. Amos explained that much of this growth came from Miraito, the company’s cancer insurance product launched in March, which saw sales jump 35.6%. He also said early demand for the new medical product, Anshin Palette, launched in late December, had been encouraging.
Amos added that Aflac U.S. generated nearly $1.6 billion in new sales in 2025. More than one-third of those sales came in the fourth quarter alone. He said premium persistency stood at 79.2%, showing that customers are continuing to renew their policies. He emphasized that the company remains focused on profitable growth, careful underwriting, and disciplined expense management. He also said the board approved a 5.2% dividend increase for the first quarter of 2026. In 2025, Aflac returned significant capital to shareholders, including $3.5 billion spent to repurchase 33 million shares and $1.2 billion paid in dividends.
Aflac Incorporated (NYSE:AFL) provides supplemental health and life insurance through its operations in the United States and Japan, offering financial protection to policyholders and customers.
10. JPMorgan Chase & Co. (NYSE:JPM)
Forward P/E Ratio: 15.15
On February 25, Truist lowered its price recommendation on JPMorgan Chase & Co. (NYSE:JPM) to $330 from $334. It reiterated a Hold rating on the shares. The analyst said the firm is raising its FY26 EPS estimate by $0.35 to $21.60 after the company’s investor day. The revision reflects stronger market revenue growth than Truist had previously expected, according to the research note shared with investors.
A February 24 CNBC report highlighted comments from JPMorgan Chase CEO Jamie Dimon, who said the bank is preparing for the impact of artificial intelligence. He explained that AI has already replaced some roles, but the bank is working to move affected employees into new positions rather than letting them go. JPMorgan continues to invest heavily in technology. The bank spends nearly $20 billion each year on tech as it expands the use of AI across its business.
The company’s total workforce remained steady at about 318,500 employees, though some roles shifted. Support and operations positions declined, while client-facing and revenue-focused roles increased. AI and automation have also improved efficiency. Employees can now manage more accounts, fraud-related costs have declined, and software engineers are working more productively.
Dimon said the bank is increasing its use of generative AI, especially in customer service and technology areas. He also cautioned that AI could disrupt many professions and lead to significant job losses if not handled carefully. He said companies and governments need to prepare by investing in retraining programs and helping workers adjust to these changes.
JPMorgan Chase & Co. (NYSE:JPM) operates as a financial holding company, providing investment banking, consumer and small business financial services, commercial banking, transaction processing, and asset management.
9. Stanley Black & Decker, Inc. (NYSE:SWK)
Forward P/E Ratio: 15.13
On February 24, Morgan Stanley raised its price recommendation on Stanley Black & Decker, Inc. (NYSE:SWK) to $87 from $80. The firm kept an Equal Weight rating on the shares. The update followed the company’s latest earnings report, which led the firm to revisit its overall risk and reward outlook. The analyst sees room for EPS improvement, mainly supported by stronger gross margins. Still, the environment remains challenging. Competition continues to intensify, and demand in the Tools & Outdoor segment has not fully recovered. The analyst also noted there is no clear catalyst yet that would drive a meaningful turnaround, according to the research note.
On the same day, the company said its Board of Directors approved a regular first-quarter cash dividend of $0.83 per common share. Shareholders on record as of March 10, 2026, will receive the payment on March 24, 2026.
Stanley Black & Decker, Inc. (NYSE:SWK) operates globally, supplying hand tools, power tools, outdoor products, and related accessories. The company also provides engineered fastening solutions through its Tools & Outdoor and Engineered Fastening segments.
8. General Mills, Inc. (NYSE:GIS)
Forward P/E Ratio: 13.79
On February 23, Mizuho lowered its price recommendation on General Mills, Inc. (NYSE:GIS) to $47 from $52. It reiterated a Neutral rating on the stock. The firm adjusted its models for food companies after the latest CAGNY presentations.
A February 17 Reuters report said General Mills cut its full-year sales and profit outlook. That update weighed on the broader consumer goods sector. Investors reacted quickly as concerns around weak demand and price sensitivity resurfaced. The company said lower-income consumers are moving toward cheaper options and private-label brands. Higher living and housing costs are squeezing budgets. CEO Jeffrey Harmening said these pressures are not temporary. He believes affordability and value are becoming lasting priorities for shoppers. The stock fell 7% after the announcement. Over the past year, shares have been down by over 28%. That decline reflects how difficult the environment has become for packaged food companies.
The industry is also dealing with shifting eating habits. Demand for healthier products continues to grow. GLP-1 weight-loss drugs are adding another layer of uncertainty. General Mills’ cereal segment, one of its core businesses, faces tougher competition from protein-focused breakfast products. The company said it is accelerating innovation in protein-based items, which it expects will represent about 25% of fiscal 2026 net sales. Peers are under pressure as well. PepsiCo recently cut prices on some snack brands after consumers resisted earlier increases. Kraft Heinz paused its breakup plans and lowered its profit outlook after weaker results. Analysts noted that while General Mills is taking steps to stabilize growth, softer demand and heavier promotions are still weighing on performance.
The company now expects annual sales to decline 1.5% to 2%, compared with its earlier forecast of flat to modest growth. It also projects adjusted operating profit and earnings per share will drop 16% to 20%, a steeper decline than previously expected.
General Mills, Inc. (NYSE:GIS) manufactures and markets branded consumer foods globally. Its operations include North America Retail, International, North America Pet, and North America Foodservice.
7. The Kroger Co. (NYSE:KR)
Forward P/E Ratio: 12.76
On February 25, Wells Fargo downgraded The Kroger Co. (NYSE:KR) to Equal Weight from Overweight. It also lowered its price target to $68 from $70. The firm said it is becoming more cautious and prefers to move to the sidelines for now. The analyst sees some potential under Kroger’s new leadership. Even so, the company will likely need to increase spending at a time when the grocery sector is already under pressure. Wells Fargo also expects near-term earnings risk, with core growth likely to remain muted. In its view, the current risk and reward balance does not justify a more positive stance.
CNBC reported on February 8 that Kroger appointed Greg Foran as its new CEO. He previously held senior roles at Walmart and most recently served as CEO of Air New Zealand. His appointment followed a year-long search after former CEO Rodney McMullen was removed in March after a board investigation into his personal conduct. Foran brings a strong operating background. While leading Walmart’s US business from 2014 to 2019, he helped improve store performance and delivered 20 straight quarters of comparable sales growth. Analysts see his experience as important, especially as Kroger faces slower consumer spending and increasing competition from Walmart.
Ronald Sargent, who stepped in as interim CEO, will remain chairman and support the leadership transition. The change comes during a difficult period for Kroger. The company recently failed in its $25 billion attempt to acquire Albertsons and continues to face broader challenges across the retail sector.
The Kroger Co. (NYSE:KR) operates supermarkets, multi-department stores, and fulfillment centers across the United States. It remains one of the country’s largest food and drug retailers.
6. The J. M. Smucker Company (NYSE:SJM)
Forward P/E Ratio: 11.04
On February 23, JPMorgan raised its price recommendation on The J. M. Smucker Company (NYSE:SJM) to $122 from $121. The firm reiterated an Overweight rating on the stock. The update came as part of the firm’s fiscal Q3 earnings preview, reflecting a slightly more positive view ahead of the results.
A February 23 CNBC report said Bank of America also became more constructive on the stock after last week’s Consumer Analyst Group of New York conference. The firm upgraded J.M. Smucker to Buy from Neutral and increased its price target to $130 from $120. Bank of America said earlier concerns tied to Smucker’s 2023 acquisition of Hostess Brands have started to ease. Those worries had weighed on sentiment, but the outlook now appears more stable. Analyst Peter Galbo said management’s tone at the conference was reassuring. The company made it clear that it is not planning additional acquisitions at this time. It also indicated that share repurchases could be an option going forward. The analyst viewed that as a positive signal, especially as it points to more disciplined capital allocation.
Bank of America also said Smucker appears better positioned than many peers to manage the impact of GLP-1 weight-loss drugs. These treatments have raised concerns across the food industry, as they could reduce demand for certain packaged foods.
The J. M. Smucker Company (NYSE:SJM) produces and markets branded food and beverage products worldwide. Its portfolio includes well-known brands sold primarily through retail channels across North America.
5. The Kraft Heinz Company (NASDAQ:KHC)
Forward P/E Ratio: 9.63
On February 23, Mizuho lowered its price recommendation on The Kraft Heinz Company (NASDAQ:KHC) to $25 from $27. It kept a Neutral rating on the stock. The firm adjusted its models for food producers after the recent CAGNY presentations.
J.P. Morgan analysts Thomas Palmer and Brandon Cohen took a more cautious stance. On February 12, they downgraded the stock to Underweight, pointing to a weak outlook and the potential cost required to restart growth. In their view, Kraft Heinz may continue to face challenges that could push out a recovery in sales volumes through 2026. If the company needs to spend more than expected to support struggling segments, financial flexibility could tighten. They noted that dividend payments are projected to use nearly 80% of free cash flow next year. That leaves limited room for error.
The analysts also pointed out that other food companies, including General Mills, have faced similar cost pressures. They highlighted that Kraft Heinz’s North American volumes have fallen more than 3% in each of the past 19 quarters. This has happened even as the company increased spending on innovation, marketing, pricing, and brand upgrades. Some of the decline reflects softer demand across categories, though that pressure has eased somewhat. More concerning, they said, are ongoing market share losses that show little sign of improving.
Nielsen data supports this view. Volumes are down in 13 of Kraft Heinz’s largest US retail categories, and the company is losing share in 10 of them, including packaged lunch meats. Palmer and Cohen acknowledged that higher marketing investment could help over time. At the same time, they cautioned that these efforts often take longer to produce measurable gains. Kraft Heinz expects its investments to begin lifting volumes in the second quarter and build momentum in the second half of the year. The analysts questioned whether the company’s 2026 outlook may prove too optimistic.
The Kraft Heinz Company (NASDAQ:KHC) manufactures and markets food and beverage products globally. Its portfolio is organized across eight platforms: Taste Elevation, Easy Ready Meals, Substantial Snacking, Desserts, Hydration, Cheese, Coffee, and Meats.
4. Merck & Co., Inc. (NYSE:MRK)
Forward P/E Ratio: 9.13
On February 25, RBC Capital initiated coverage of Merck & Co., Inc. (NYSE:MRK) with an Outperform rating and a $142 price target. The firm believes investor interest in the stock could continue, supported by upcoming product launches and Phase 3 trial results that may lead to higher earnings estimates. The analyst also pointed to the company’s long-term outlook. While Keytruda is expected to lose exclusivity in late 2028, RBC described that period as “de-risking.” The firm said management’s track record gives it confidence that Merck can return to growth in the early 2030s. This view differs from broader market expectations, which assume Merck’s decline could last into the mid-2030s, according to the research note.
On February 23, Merck announced plans to reorganize its business into two separate divisions. One division will focus on its oncology portfolio, led by Keytruda. The other will include its non-oncology treatments. This move reflects the company’s effort to reduce its reliance on Keytruda and other older drugs as patents approach expiration. Merck has expanded its pipeline significantly in recent years. Since 2021, the company has tripled the number of programs in development. It also acquired Cidara Therapeutics and Verona Pharma last year in deals worth about $10 billion combined, strengthening its broader portfolio. Its shares were little changed in early trading following the announcement.
Merck has taken similar steps before. In 2021, the company spun off its women’s health and biosimilars business into a separate company, Organon. This latest restructuring does not include its animal health division.
Merck & Co., Inc. (NYSE:MRK) operates as a global healthcare company, developing and delivering prescription medicines, biologic therapies, vaccines, and animal health products.
3. Pfizer Inc. (NYSE:PFE)
Forward P/E Ratio: 8.67
On February 25, RBC Capital initiated coverage of Pfizer Inc. (NYSE:PFE) with an Underperform rating and a $25 price target. The firm said its outlook reflects an “insurmountable” $15B-$20B revenue decline expected through 2030, with limited visibility into new products that could help offset the loss. The analyst noted that Pfizer’s roughly 6% dividend yield offers some support and stands above the peer average. Even so, that alone may not be enough to counter deeper structural challenges. The firm also sees a lack of meaningful catalysts heading into 2026, according to the research note.
Pfizer also signed a licensing agreement with China-based Sciwind Biosciences for its type 2 diabetes drug, ecnoglutide. Under the agreement, Sciwind could receive up to $495 million in milestone payments, along with an upfront fee that was not disclosed. Pfizer will gain the rights to commercialize the drug in mainland China.
Sciwind said the partnership supports Pfizer’s broader expansion in China’s metabolic disease market. Ecnoglutide belongs to the GLP-1 receptor agonist class, which helps regulate blood sugar and control appetite. This category has drawn strong interest across the industry, with companies like Novo Nordisk, Eli Lilly, Innovent Biologics, and Guangzhou Innogen investing heavily in similar treatments.
The drug received approval in China in January. Sciwind has also submitted an application for a version aimed at weight management. Pfizer recently licensed another experimental GLP-1 treatment from a different Chinese drugmaker, signaling continued focus on this fast-growing area.
Pfizer did not disclose the upfront payment amount, launch timing, or expected pricing. Unlike some competing GLP-1 drugs, including Novo Nordisk’s Ozempic and Eli Lilly’s Mounjaro, ecnoglutide will not be covered under China’s national health insurance program for diabetes treatment.
Pfizer Inc. (NYSE:PFE) operates as a global biopharmaceutical company focused on discovering, developing, manufacturing, and marketing medicines worldwide.
2. Devon Energy Corporation (NYSE:DVN)
Forward P/E Ratio: 8.05
On February 23, Scotiabank analyst Paul Cheng lowered his price recommendation on Devon Energy Corporation (NYSE:DVN) to $41 from $45. The analyst reiterated a Sector Perform rating on the stock. He told investors that fourth-quarter results are expected to have a neutral impact on the stock in the near term. Scotiabank sees the current risk and reward as fairly balanced. At the same time, the firm noted that Devon will need to show consistent outperformance to ease investor concerns, particularly around its Delaware Basin exposure and its drilling inventory backlog.
During the Q4 2025 earnings call, President and CEO Clay Gaspar spoke about the planned merger with Coterra Energy. He said the deal would create stronger long-term value than either company could achieve independently. Gaspar explained that the combined company would hold a leading position in the Delaware Basin. He expects the basin to contribute more than half of the total production and cash flow. In addition, Devon expects to generate about $1 billion in annual pretax synergies by the end of 2027, alongside ongoing efficiency efforts. He also pointed to plans to increase shareholder returns through higher dividends and a new share repurchase program.
Gaspar said the company delivered strong operational and financial results in the fourth quarter. Production, operating costs, and capital spending all came in better than expected. This performance helped generate $700 million in free cash flow. He credited production optimization, strong new well performance, and efficient asset management for pushing oil output above the company’s guidance range.
He also noted that Devon achieved a 193% reserve replacement rate for the year. Finding and development costs were slightly above $6 per barrel of oil equivalent, reflecting efficient development across its resource base.
Devon Energy Corporation (NYSE:DVN) operates as a US-based oil and gas producer with a diversified portfolio across multiple basins, led by its acreage in the Delaware Basin. The company focuses on the exploration, development, and production of oil, natural gas, and natural gas liquids.
1. Bristol-Myers Squibb Company (NYSE:BMY)
Forward P/E Ratio: 7.58
On February 25, RBC Capital initiated coverage of Bristol-Myers Squibb Company (NYSE:BMY) with a Sector Perform rating and a $60 price target. The firm said Bristol Myers has “large-cap pharma’s most significant Phase 3 path,” pointing to the depth of its late-stage pipeline. The analyst noted that the recent re-rating of the shares appears tied more to broader macro factors, valuation shifts, and positioning ahead of potential catalysts in the second half of 2026. It does not reflect a major change in the company’s underlying fundamentals. At current levels, the firm believes the risk and reward “appear balanced at these levels.”
On February 23, Bristol Myers announced positive top-line results from its ongoing Phase 2 registrational study evaluating Reblozyl for anemia in adults with Alpha (α)-Thalassemia outside the US. Both patient groups in the study met their primary goals. In non-transfusion-dependent patients, Reblozyl showed a statistically significant and clinically meaningful increase in hemoglobin levels. In transfusion-dependent patients, the treatment led to a statistically significant and clinically meaningful reduction in red blood cell transfusion needs.
The study also met all key secondary endpoints. Safety results were consistent with the established safety profile of Reblozyl in treating thalassemia.
Bristol-Myers Squibb Company (NYSE:BMY) operates as a global biopharmaceutical company focused on discovering, developing, and delivering medicines for serious diseases. Its work spans areas such as oncology, hematology, immunology, cardiovascular disease, and neuroscience.
While we acknowledge the potential of BMY 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 BMY and that has 100x upside potential, check out our report about this cheapest AI stock.
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