In this article, we take a look at 14 cheap high dividend stocks to buy.
A new wave is emerging among American Gen Z investors, with many trading in their nine-to-five roles for dividend investing. These young people are encouraging investment in flashy, dividend-driven plays and channeling the earnings to avoid the corporate grind.
According to Bloomberg, many young investors are now putting their money into exchange-traded funds (ETFs) that advertise very high returns. These returns often come from complex underlying financial vehicles like derivatives, instead of the usual dividends paid by company stocks. What makes this attractive is the idea of getting a regular income similar to a monthly salary. Some ETFs even pay weekly or monthly, which allows Gen Z investors to cover living expenses without relying on a job.
This trend is also influenced by the current economic crisis. With inflation skyrocketing and housing becoming more expensive, many people under 30 feel that the conventional way of building wealth through work is out of reach. Instead of climbing the corporate ladder, they are using apps and online communities to build dividend-focused portfolios.
In 2024, global dividends grew significantly, rising by 8.5%. Growth was especially strong in the Asia-Pacific region, where government policies encouraged companies to pay dividends twice a year instead of once. In the United States, there was a record number of new and reinstated dividends, mainly in the technology, media, and telecommunications sector.
As per S&P Global, the new US government could bring uncertainty in areas like tariffs and interest rates during 2025, which might increase market volatility. Since interest rates are expected to stay high at least in the first half of 2025, companies will need to focus on dividends and balanced capital return strategies to keep current investors and attract new ones.
With that outlook in mind, let’s take a look at the best high dividend stocks to buy right now.
Image by Steve Buissinne from Pixabay
Our Methodology
For this article, we used a stock screener to filter out dividend stocks with a low P/E ratio and dividend yields over 3% as of September 10. These stocks also have strong fundamentals and a solid dividend history. These 14 stocks have also drawn recent coverage from Wall Street analysts and mainstream media. The stocks are ranked according to the number of hedge funds having stakes in them, as per Insider Monkey’s database of Q2 2025.
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).
14. Canadian Imperial Bank of Commerce (NYSE:CM)
Dividend Yield as of September 10: 3.63%
P/E Ratio: 12.88
Number of Hedge Fund Holders: 20
Canadian Imperial Bank of Commerce (NYSE:CM) is one of the best dividend stocks to buy. On August 29, BMO Capital lifted its price target on CM to C$107 from C$112 and assigned an Outperform rating to the stock. The bank’s shares have experienced strong upward movement, posting a roughly 30% increase in six months.
BMO raised its price target after CM reported better-than-expected earnings, with cash operating earnings per share of $2.16, beating BMO’s forecast of $1.99 by 9% and the Wall Street estimate of $2.01 by 8%.
BMO added that Capital Markets also helped outperform earnings expectations, with trading revenue coming in at $567 million, higher than expected.
The bank had a return on equity of 14.2% on a 13.4% CET1 ratio after buying back about 5.5 million shares in the second quarter, and it announced a 20 million normal course issuer bid (NCIB), or around 2.2% of its shares, pending regulatory approval.
Canadian Imperial Bank of Commerce (NYSE:CM) is a financial institution that offers a wide range of services, including banking, loans, investments, insurance, and wealth management.
13. The Toronto-Dominion Bank (NYSE:TD)
Dividend Yield as of September 10: 4.04%
P/E Ratio: 8.86
Number of Hedge Fund Holders: 23
The Toronto-Dominion Bank (NYSE:TD) is one of the best dividend stocks to buy. On August 1, TD reported that it has published a base prospectus for its $40 billion Global Medium Term Note Programme, which has been authorized by the Financial Conduct Authority.
The bank announced that the prospectus dated August 1 has been filed with the National Storage Mechanism and is available on the Financial Conduct Authority’s data portal.
Notes issued through this program are not covered by the US Securities Act of 1933 and can only be sold or offered in the US or to US persons if some exemptions are met.
The announcement points to several documents tied to the prospectus, including the Annual Information Form dated December 4, 2024, the Management’s Discussion and Analysis for the year ending October 31, 2024, the audited 2023-2024 financial statements, and the Second Quarter 2025 shareholder report.
The prospectus also includes references to the “Terms and Conditions of the Notes” sections from the bank’s earlier base prospectuses dated June 30, 2021, June 30, 2022, June 30, 2023, and July 31, 2024.
The prospectus has information meant only for residents of certain countries, and the bank warns that people outside those countries, or not included in the offer, should not rely on it.
The Toronto-Dominion Bank (NYSE:TD) is a financial institution that serves clients in Canada and the United States, among other countries. It operates through four main segments – Canadian Personal and Commercial Banking, US Retail, Wealth Management and Insurance, and Wholesale Banking.
12. TotalEnergies SE (NYSE:TTE)
Dividend Yield as of September 10: 6.17%
P/E Ratio: 11.37
Number of Hedge Fund Holders: 23
TotalEnergies SE (NYSE:TTE) is one of the best dividend stocks to buy. On September 1, the company disclosed in a press release that it has received the Nzombo exploration permit in the Republic of the Congo.
Located 100 km off Pointe-Noire and close to TotalEnergies’ Moho production sites, the 1,000 km² permit will be 50% operated by TotalEnergies, while QatarEnergy and SNPC hold 35% and 15%, respectively. Drilling for one exploration well is set to start before the end of 2025, according to the work program.
According to Kevin McLachlan, Senior VP of Exploration at TotalEnergies, the award demonstrates the company’s strategy to grow its Exploration portfolio with projects that can benefit from existing facilities.
With the Nzombo permit, the company continues its long-term collaboration with the Republic of the Congo, where it operates existing production facilities.
TotalEnergies SE (NYSE:TTE) is a French global energy company that produces and sells oil, biofuels, natural gas, biogas, low-carbon hydrogen, renewable energy, and electricity.
