In this article, we will take a look at the 15 Cheapest Stocks with Highest Dividends.
Dividend stocks are getting more attention in the current market, and analysts still expect dividend growth to stay positive this year. A report from S&P Global projects that total U.S. dividends will grow by 6.5% in 2026, reaching about $827 billion. That is a bit lower than the 7.3% growth seen in 2025. It suggests a more cautious pace. The 6.5% estimate also comes in below longer-term averages. Three-, five-, and ten-year CAGRs stand at 7.2%, 7.3%, and 7.4%.The firm expects all 24 sectors to post dividend growth in 2026. That is a change from 2025, when only the consumer durables and apparel sector saw a decline, down 0.4%.
Growth is expected to come from both value and growth areas. Banks, energy, financial services, and insurance are likely to drive steady dividend increases, supported by stable earnings and stronger balance sheets. Software and services are also expected to contribute. That is notable, as the sector is usually seen as growth-focused, but improving cash flow is starting to show up in dividends.
The report also pointed out that S&P 500 companies account for about 80% of total regular dividend payments in the US. For 2026, payouts from companies in the index are expected to rise by 6.5%. That would keep the five-year growth trend above 7%, with 7.2% in 2025 and 7.3% in 2026. As in the prior year, all sectors in the index are expected to grow dividends, though the drivers behind that growth are starting to shift.
Given this, we will take a look at some of the best stocks with the highest dividends.
Photo by Viacheslav Bublyk on Unsplash
Our Methodology:
For this list, we screened for dividend companies with share prices below $50, as of the close of April 2. Next, we identified stocks with forward P/E ratios below 20. From that group, we picked stocks with dividend yields around 4% or more, as of April 4. 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. Huntington Bancshares Incorporated (NASDAQ:HBAN)
Dividend Yield as of April 4: 3.93%
Share Price as of the Close of April 2: $15.79
Forward P/E Ratio: 10.06
On March 31, Morgan Stanley lowered its price recommendation on Huntington Bancshares Incorporated (NASDAQ:HBAN) to $21 from $23. It reiterated an Overweight rating on the shares. The analyst noted that the median bank stock in its coverage has declined about 5% over the past 30 days. This pullback was tied to concerns around the ongoing Middle East conflict and its potential impact on economic growth and inflation. There were also worries linked to private credit headlines. In response, the firm reduced price targets across the group by roughly 9% on average, reflecting lower valuation multiples as risk in the broader environment increased.
During the company’s Q4 2025 earnings call, management said it expects net interest income to grow around 10% to 13% in 2026. This outlook is supported by projected loan growth of 11% to 12% and deposit growth of 8% to 9%. They also expect fee revenues to increase between 13% and 16%. At the same time, core expenses are projected to rise about 10% to 11%. Baseline operating leverage is estimated at roughly 150 to 200 basis points.
Management added that the guidance already includes cost synergies from Veritex being fully realized by Q2, and from Cadence by Q4. Cadence is expected to contribute between $1.85 billion and $1.9 billion in net interest income, along with about $300 million in fee revenue for the year. On credit quality, net charge-offs are projected to range between 25 and 35 basis points. Losses are expected to come in at the lower end early in the period. They also highlighted ongoing investment in digital capabilities and continued expansion across new and existing markets. Management said that the current 2026 outlook for Huntington’s stand-alone growth in net interest income, assets, deposits, and fees generally comes in above 2025 levels.
Huntington Bancshares Incorporated (NASDAQ:HBAN) is a regional bank holding company. Through its main subsidiary, Huntington National Bank, and its affiliates, the company provides a broad range of services. These include banking, payments, wealth management, and risk management solutions for consumers, small and mid-sized businesses, corporations, municipalities, and other organizations.
14. Comcast Corporation (NASDAQ:CMCSA)
Dividend Yield as of April 4: 4.73%
Share Price as of the Close of April 2: $27.93
Forward P/E Ratio: 7.73
On April 1, Scotiabank lowered its price recommendation on Comcast Corporation (NASDAQ:CMCSA) to $34 from $35.25. It reiterated a Sector Perform rating on the shares. The firm said the US wireless pricing environment remains “competitive yet rational” and supportive of growth. The analyst added that the revised target reflects slightly lower FY EBITDA projections.
During Comcast’s Q4 2025 earnings call, Michael Cavanagh said 2026 is expected to be the company’s most significant year for broadband investment. He indicated that Comcast plans to shift most of its residential broadband customers to a simpler pricing and packaging structure by the end of the year. He also noted that a meaningful portion of customers currently on a free line are expected to transition to paid plans in the second half of the year.
Jason Armstrong said EBITDA may face some near-term pressure. This is mainly tied to ongoing reinvestment in pricing and efforts to improve the customer experience. He added that once this phase passes, most customers should be on the new broadband pricing structure, with better monetization in the wireless segment.
Comcast Corporation (NASDAQ:CMCSA) is a global media and technology company. It provides broadband, wireless, and video services through Xfinity, Comcast Business, and Sky. It also produces, distributes, and streams entertainment, sports, and news across its various brands.
