In this article, we will take a look at the 15 Best Cheap Dividend Stocks to Buy.
An April 8 report from CNBC pointed out that dividend yields are not what they used to be, so investors need to be more selective with their choices. Trivariate Research noted that the yield on the S&P 500 is sitting around 1.15%, close to a 50-year low. Founder Adam Parker said the only time it dropped further was during the tech bubble, when it reached 1.09%.
Even with that backdrop, dividend-paying stocks are holding up better this year. The ProShares S&P 500 Dividend Aristocrats ETF is up about 3% in 2026, while the S&P 500 is down around 1%. Parker also said companies that keep raising their dividends have slightly outperformed their industry groups since COVID-19. Before that period, their performance was mostly in line. He added that junk stocks and companies with the lowest payout ratios have seen the strongest gains in recent years. Consistent dividend increases still tend to signal financial stability and disciplined management. He made the following comment:
“This is another in many examples of shareholder returns, like buybacks as well, working better post-COVID than prior. Dividend increases have worked best in Real Estate, Industrials, and Utilities; worst in Communication Services, Technology, and Consumer Staples.”
Given this, we will take a look at some of the best dividend stocks to invest in.
Image by Steve Buissinne from Pixabay
Our Methodology:
For this list, we screened for dividend companies with forward P/E ratios around 20, as of April 9. We limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment.
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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
15. Broadcom Inc. (NASDAQ:AVGO)
Forward P/E as of April 9: 20.25
On April 8, Seaport Research downgraded Broadcom Inc. (NASDAQ:AVGO) to Neutral from Buy and did not assign a price target. The firm still described Broadcom as “the leading competitor” to Nvidia in AI compute. At the same time, it noted that the company is starting to run into the same industry limits that Nvidia faces. It pointed to ongoing supply constraints. It also said Broadcom is “increasingly getting drawn into the market for financing customers.” The business continues to perform well, but the firm believes those gains are already reflected in consensus expectations.
A Reuters report on April 7 said Broadcom signed a long-term agreement with Google. The deal covers the development and supply of custom AI chips for Google’s next-generation infrastructure through 2031. Broadcom also reached an agreement with Anthropic. The deal gives Anthropic access to about 3.5 gigawatts of AI computing power using Google’s processors starting in 2027.
The report added that demand for custom chips, including Google’s TPUs, is increasing as companies look beyond Nvidia GPUs. Anthropic said the agreement supports its $50 billion infrastructure push. It also noted that its Claude model’s annualized revenue has surpassed $30 billion in 2026.
Broadcom Inc. (NASDAQ:AVGO) is a global technology company that designs, develops, and supplies semiconductors, enterprise software, and security solutions. It operates through two segments: semiconductor solutions and infrastructure software.
14. APA Corporation (NASDAQ:APA)
Forward P/E as of April 9: 19.19
On April 7, BMO Capital raised its price recommendation on APA Corporation (NASDAQ:APA) to $47 from $35. It kept a Market Perform rating. The update came as part of a broader research note. The firm adjusted its models with updated Q1 mark-to-market assumptions. These changes reflect the war in Iran and continued oversupply in the North American natural gas market. The analyst said oil and equity markets are sitting at a critical point, waiting for the next move from Donald Trump.
If the conflict ends and flows through the Strait of Hormuz, oil prices could settle in a $75-$85 per barrel range. If tensions rise and the Strait remains shut, prices could climb to $150-$200 per barrel, the analyst tells investors in a research note. BMO added that the economic cost of a prolonged conflict would be too high. The firm expects the war to wind down by the end of April.
APA Corporation (NASDAQ:APA) is an independent energy company. It owns subsidiaries that explore for and produce oil and natural gas in the United States, Egypt, and the United Kingdom, and also explores offshore Suriname.
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