15 Best Cheap Dividend Stocks to Buy

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.

13. American Express Company (NYSE:AXP)

Forward P/E as of April 9: 17.12

On April 9, Wells Fargo lowered its price recommendation on American Express Company (NYSE:AXP) to $415 from $425. It reiterated an Overweight rating on the shares. The firm said that as war risk starts to ease, investor focus is shifting. The next concern is AI-related job fears, and sentiment there appears mostly bearish. Wells Fargo noted that credit trends and card spending remain steady. It also said stimulus is likely to outweigh pressure from gas prices. The firm expects banks to maintain a constructive view on the consumer in the coming week.

On March 10, Reuters reported that American Express signed a multi-year agreement with the National Football League. The company will become the league’s official payments partner starting with the 2026 season. The deal gives cardholders access to ticket presales, on-site experiences, and other benefits at selected NFL events in the US and abroad. It also includes perks tied to major events such as the Super Bowl, the NFL Draft, and international games. These offerings include presale ticket access, promotions, and branded experiences.

As part of the rollout, cardholders will get early access to tickets for the 2026 NFL game in Melbourne between the Los Angeles Rams and the San Francisco 49ers, scheduled for September 10. The partnership comes as American Express continues to expand its sports marketing presence. The company said this area remains central to its broader brand strategy. It added that its sports portfolio now includes more than 50 leagues, teams, venues, and major events worldwide.

American Express Company (NYSE:AXP) is a global payments and premium lifestyle brand powered by technology. Its card-issuing, merchant-acquiring, and card network businesses provide products and services to consumers, small businesses, mid-sized companies, and large corporations around the world.

12. Automatic Data Processing, Inc. (NASDAQ:ADP)

Forward P/E as of April 9: 17.06

On April 7, BMO Capital analyst Daniel Jester lowered the firm’s price recommendation on Automatic Data Processing, Inc. (NASDAQ:ADP) to $234 from $281. It reiterated a Market Perform rating on the shares. The update came as part of a broader research note previewing Q1 in Human Capital Management. Shares have been soft heading into Q3 results expected later this month. The analyst pointed to a mix of cyclical and structural growth concerns. Together, these suggest ongoing pressure on estimates. Based on intra-quarter data, read-throughs from Paychex, and recent discussions with industry participants, BMO expects modest upside in ADP’s Q3 results. Still, the firm does not see it as strong enough to ease its near-term caution, the analyst tells investors in a research note.

On March 31, TD Cowen also lowered its price target on ADP to $208 from $255 and kept a Hold rating. The firm updated its model to reflect the latest expectations for the Fed Funds rate, foreign exchange, and its outlook ahead of Q3 results.

Automatic Data Processing, Inc. (NASDAQ:ADP) provides cloud-based human capital management solutions. Its business operates through Employer Services and Professional Employer Organization segments.

11. Black Hills Corporation (NYSE:BKH)

Forward P/E as of April 9: 16.18

On April 9, BofA analyst Ross Fowler raised the firm’s price recommendation on Black Hills Corporation (NYSE:BKH) to $76 from $72. It reiterated a Neutral rating on the shares. The firm left its FY26, FY27, and FY28 EPS estimates unchanged. It pointed to updated peer group multiples as the reason for the higher target.

On April 1, Ladenburg Thalmann initiated coverage on Black Hills with a Buy rating. It also set a $77 price target on the stock. The analyst described the company as shifting into a “critical infrastructure provider for the regional AI and hyperscale data center boom.” It noted that Black Hills is using its footprint in the Mountain West, along with supportive regulation, to benefit from “unprecedented load growth.”

Black Hills Corporation (NYSE:BKH) is a customer-focused utility company. It serves about 1.35 million natural gas and electric customers across Arkansas, Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota, and Wyoming. The company operates through two segments: Electric Utilities and Gas Utilities.

10. The Goldman Sachs Group, Inc. (NYSE:GS)

Forward P/E as of April 9: 15.38

On April 7, UBS lowered its price recommendation on The Goldman Sachs Group, Inc. (NYSE:GS) to $930 from $990. It kept a Neutral rating on the shares. The change came as part of a broader Q1 preview across large-cap banks and consumer finance names. The firm adjusted its targets but said its estimates for 2026 and 2027 remain mostly unchanged, even after reducing expected rate cuts from two to one in 2026. The analyst noted that the year-to-date selloff in the sector “could unearth some opportunities, especially given strong momentum” in direct lending, capital markets, and deregulation, according to a research note.

On April 2, Reuters reported that Goldman Sachs completed its acquisition of Innovator Capital Management, an active exchange-traded fund provider. The deal expands the bank’s presence in the fast-growing active ETF space. These products have been gaining traction as investors look for lower costs and more flexible strategies, especially at a time when some passive index products have delivered weaker returns.

Goldman Sachs had said in December that it would acquire Innovator Capital, which managed 171 ETFs with about $31 billion in assets, in a deal valued at roughly $2 billion. The firm said more than 70 employees from Innovator will join its asset management unit. With the addition, Goldman’s ETF platform now includes around 240 funds with $90 billion in assets.

Innovator focuses on defined outcome strategies that use options to limit downside risk while capping gains. This approach has been attracting interest, particularly from pre-retirement and retired investors focused on capital preservation. The firm added that the defined outcome ETF market, estimated at about $70–$80 billion, is growing faster than traditional ETFs as investors look for different ways to manage shifting market correlations.

The Goldman Sachs Group, Inc. (NYSE:GS) is a global financial institution that provides a wide range of services to corporations, financial institutions, governments, and individuals. It operates through Global Banking & Markets, Asset & Wealth Management, and Platform Solutions.

9. Hormel Foods Corporation (NYSE:HRL)

Forward P/E as of April 9: 15.24

On April 9, JPMorgan downgraded Hormel Foods Corporation (NYSE:HRL) to Neutral from Overweight. It lowered the stock’s price target to $23 from $28. The firm said margin pressure is starting to build and is not reflected in the company’s 2026 outlook. It pointed to rising freight costs, which appear more persistent than expected, affecting both spot rates and fuel surcharges, the analyst tells investors in a research note.JPMorgan also said recent price increases, including those for ground turkey and Planters, “seem to have triggered greater price elasticity than prior rounds of pricing.”

During the fiscal Q1 2026 earnings call, Interim CFO Paul Kuehneman reiterated that the company is maintaining its full-year outlook. He said Hormel still expects organic net sales growth of 1% to 4%, adjusted operating income growth of 4% to 10%, and adjusted diluted EPS in the range of $1.43 to $1.51. Interim CEO Jeffrey Ettinger added that for Q2, the company expects another quarter of top-line growth. Adjusted diluted EPS is projected to be roughly flat to slightly higher than the prior year.

Management also noted that the pending whole-bird turkey transaction is expected to reduce fiscal 2026 net sales by about $50 million. Most of the related sales will still be included in reported results for the year.

Hormel Foods Corporation is a global branded food company. It develops, processes, and distributes a range of food products across multiple markets through its Retail, Foodservice, and International segments.

8. The Bank of New York Mellon Corporation (NYSE:BK)

Forward P/E as of April 9: 14.76

On April 7, JPMorgan raised its price recommendation on The Bank of New York Mellon Corporation (NYSE:BK) to $130.50 from $128.50. It reiterated an Overweight rating on the shares. The firm said it expects trust banks to come in ahead of Q1 estimates.

On March 31, Morgan Stanley lowered its price target on BNY Mellon to $135 from $147 and kept an Equal Weight rating. The analyst noted that the median bank stock in its coverage has declined about 5% over the past 30 days. The move reflects concerns around the potential impact of the ongoing Middle East conflict on economic growth and inflation. It also pointed to market worries tied to private credit headlines. As a result, the firm reduced price targets across the group by about 9% on average. It applied lower valuation multiples to reflect a higher-risk environment.

The Bank of New York Mellon Corporation (NYSE:BK) is a global financial services company. It operates through Securities Services, Market and Wealth Services, and Investment and Wealth Management segments.

7. Accenture plc (NYSE:ACN)

Forward P/E as of April 9: 14.75

On April 9, Accenture plc (NYSE:ACN) said it has invested in Replit through Accenture Ventures. The goal is to help enterprises speed up the creation of digital platforms using AI-driven software development. As part of the investment, the two companies are also entering into a strategic partnership.

As companies push toward AI-led transformation, the way software is built is starting to change. Traditional development cycles, often slowed by complex environments, infrastructure setup, and long coding timelines, are being replaced. In their place, AI-native approaches are gaining ground. These methods allow teams to move from an idea to a working application much faster, often using natural language prompts and agentic AI. This approach is increasingly referred to as “vibe coding.”

Under the partnership, Accenture will work with Replit to explore how AI-driven development can be applied in enterprise settings. The teams plan to identify practical use cases and build new development workflows that can scale across Accenture’s global client base. By combining Accenture’s experience in scaling new technologies with Replit’s cloud-based platform, the partnership is aimed at helping enterprises adopt AI-driven development in a structured way while fitting it into existing engineering practices and technology systems.

Accenture plc (NYSE:ACN) provides services across strategy and consulting, technology, operations, Industry X, and Song.

6. Aflac Incorporated (NYSE:AFL)

Forward P/E as of April 9: 14.53

On April 9, UBS lowered its price recommendation on Aflac Incorporated (NYSE:AFL) to $114 from $116. It reiterated a Neutral rating on the shares. The update came as part of a Q1 earnings preview for the North American life insurance group. UBS said it expects continued attention on disability margins, with “relatively limited wiggle-room” given cyclicality and economic uncertainty. The firm also rolled its target forward to 2027 estimates from 2026.

During the Q4 2025 earnings call, Max Broden, Senior EVP & CFO, said most of the company’s 2026 guidance remains in place, with some adjustments. In Japan, underlying earned premiums are expected to decline by 1% to 2%. The expense ratio is projected between 20% and 23%. He also noted that the benefit ratio is expected in the 60% to 63% range, with a pretax profit margin of 33% to 36%.

For the US business, Broden said net earned premium growth is still expected at the lower end of the 3% to 6% range. The benefit ratio is projected between 48% and 52%. The expense ratio in the U.S. is expected to range from 36% to 39% as the company continues to expand its newer business lines.

Aflac Incorporated (NYSE:AFL) provides financial protection through its subsidiaries in the United States and Japan. Its core business focuses on supplemental health and life insurance products.

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