30 Growing Dividend Stocks with Low PE Ratios

1. Bristol-Myers Squibb Company (NYSE:BMY)

Forward P/E Ratio as of April 22: 7.24

Bristol-Myers Squibb Company (NYSE:BMY) is a major American pharmaceutical firm based in New York, which focuses on developing and delivering innovative medicines. The company is advancing its growth strategy with a robust pipeline of therapies, especially its neuroscience drug, Cobenfy. Positive results from ongoing trials could significantly enhance the company’s long-term financial prospects.

With a consistent dividend policy and strategic expansion efforts, Bristol-Myers Squibb Company (NYSE:BMY) remains an appealing option for income-focused investors. In 2024, the approvals of Cobenfy and Breyanzi are expected to drive significant revenue growth. In the fourth quarter, its Growth Portfolio generated $6.4 billion—up 21% year-over-year—contributing to a 7.5% increase in total quarterly revenue, which reached $12.34 billion, driven by strong demand for its products. BMY offers an attractive entry point for investors, with a forward P/E ratio of 7.24, and is considered one of the best growing dividend stocks with low valuation.

On March 3, Bristol-Myers Squibb Company (NYSE:BMY) announced a quarterly dividend of $0.62 per share, which fell in line with its previous payout. The company has increased its dividends for 16 consecutive years and has never missed a dividend payment in its 93-year history, making it a reliable choice for income investors. The stock has a dividend yield of 4.98%, as of April 22.

Overall, Bristol-Myers Squibb Company (NYSE:BMY) ranks first on our list of the best growing dividend stocks with low P/E ratios. While we acknowledge the potential of BMY as an investment, our conviction lies in the belief that some deeply undervalued dividend stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued dividend stock that is more promising than BMY but that trades at 10 times its earnings and grows its earnings at double digit rates annually, check out our report about the dirt cheap dividend stock.

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