In this article, we will take a look at the 5 Best Cheap Dividend Stocks to Buy. For deeper discussion and analysis, have a look at the 15 Best Cheap Dividend Stocks to Buy.
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5. AbbVie Inc. (NYSE:ABBV)
Forward P/E as of April 9: 14.35
On April 8, Cantor Fitzgerald lowered its price recommendation on AbbVie Inc. (NYSE:ABBV) to $240 from $250. It kept an Overweight rating ahead of the Q1 report. The firm said it does not expect the Q1 earnings season to “dramatically reinvigorate” the large-cap pharma sector. It still sees a “relatively favorable setup” for AbbVie, noting that investor sentiment is “as bad as we can remember in more than two years.”
On April 8, Reuters reported that AbbVie filed a lawsuit against the U.S. government, seeking clearer guidance on patients eligible for a drug discount program. Under the 340B program, drugmakers must provide medicines at significantly reduced prices to healthcare providers serving low-income populations.AbbVie argued that current guidance leaves room for misuse. It said hospitals and clinics can claim discounts for patients with limited or unrelated contact, or even seek multiple discounts for the same prescription.
The company stated that these gaps have turned a program meant for the “safety-net” into a discretionary revenue source for hospitals.AbbVie is pushing for a stricter definition. It wants the 340B discount to apply only when the provider is directly managing the patient’s condition and has seen the patient for a thorough medical visit within the past 12 months. The move adds to the ongoing dispute between drugmakers and healthcare providers over the multi-billion-dollar 340B program.
AbbVie Inc. (NYSE:ABBV) is a global research-based biopharmaceutical company. It focuses on developing, manufacturing, and selling therapies across areas such as immunology, oncology, aesthetics, neuroscience, and eye care.
4. Medtronic plc (NYSE:MDT)
Forward P/E as of April 9: 14.20
On April 7, Citi analyst Joanne Wuensch lowered the firm’s price target on Medtronic plc (NYSE:MDT) to $110 from $117 and kept a Buy rating. The update came as part of a Q1 preview for the medical technology group. The analyst said the “walls of worry are high” heading into earnings, with the sector seeing notable multiple compression. Citi also removed iRhythm and Medtronic from its list of top picks. The firm now favors Edwards Lifesciences and Intuitive Surgical.
On April 6, Stifel lowered its price target on Medtronic to $95 from $105 and maintained a Hold rating. The firm updated its model following the March 9 completion of Medtronic’s Diabetes business IPO, now called “MiniMed” (MMED). Medtronic said MiniMed will remain a consolidated subsidiary for about six months after the IPO, until the full separation is completed. During this transition period, Stifel continues to model the full Diabetes business revenue. It adjusts for the 10% non-controlling interest that Medtronic sold in the IPO. Management expects the IPO to dilute EPS by 1c to 2c per month until the separation is finalized.
Medtronic plc (NYSE:MDT) is an Ireland-based healthcare technology company. Its products are organized across four main segments: Cardiovascular, Neuroscience, Medical Surgical, and Diabetes.
3. The Kroger Co. (NYSE:KR)
Forward P/E as of April 9: 13.85
On April 2, Erste Group initiated coverage on The Kroger Co. (NYSE:KR) with a Buy rating. The analyst said Kroger is in the middle of a transformation strategy. It expects profits to grow at a stronger pace than last year.
In its Q4 2025 earnings report, the company said it completed its eCommerce strategic review. This is expected to deliver $400 million in eCommerce operating profit improvement in 2026 and create a path toward profitability. Kroger also reported $1.5 billion in operating profit from its alternative profit businesses. It generated strong adjusted free cash flow during the period.
The company completed a $7.5 billion share repurchase authorization. This included a $5 billion accelerated share repurchase program and $2.5 billion in open market transactions. The board also approved an additional $2 billion buyback authorization. Kroger appointed Greg Foran as Chief Executive Officer.
The Kroger Co. (NYSE:KR) is a food and drug retailer. It operates supermarkets, multi-department stores, and fulfillment centers across the United States. The company runs about 2,731 supermarkets, 2,273 pharmacies, and 1,702 fuel centers in more than 35 states and the District of Columbia, along with an online platform that supports an omnichannel shopping experience.
2. Chubb Limited (NYSE:CB)
Forward P/E as of April 9: 12.14
On April 8, Barclays raised its price recommendation on Chubb Limited (NYSE:CB) to $374 from $339. It reiterated an Equal Weight rating on the shares. The change came as part of a Q1 preview for the insurance group. The analyst said premium growth and broker organic growth “are likely to remain sluggish.” Barclays still expects solid margins and strong capital deployment to support book value growth in Q1.
On April 10, Chubb announced that Kevin Rampe has been named Senior Vice President, Chubb Group, and Global Claims Officer, effective immediately. He will continue in his role as Head of North America Claims while taking on global responsibility. In this expanded position, he will oversee the company’s claims operations worldwide, including management, service, and administration across its global network.
Rampe joined Chubb in 2005 as Global Compliance Officer. He later served as General Counsel of North America and Global Deputy General Counsel before becoming Head of North America Claims in 2021. Earlier in his career, he was President and Chairman of the Lower Manhattan Development Corporation. He also served as First Deputy Superintendent of the New York State Insurance Department and as First Assistant Counsel to New York State Governor George E. Pataki.
Chubb Limited (NYSE:CB) is a Switzerland-based holding company that provides insurance and reinsurance products and services worldwide through its subsidiaries.
1. The Travelers Companies, Inc. (NYSE:TRV)
Forward P/E as of April 9: 10.60
On April 8, Barclays analyst Alex Scott raised the firm’s price recommendation on The Travelers Companies, Inc. (NYSE:TRV) to $331 from $312. It reiterated an Equal Weight rating on the shares. The update came as part of a Q1 preview for the insurance group. The analyst said premium growth and broker organic growth “are likely to remain sluggish.” Barclays still expects solid margins and strong capital deployment to support book value growth in Q1.
During the Q4 2025 earnings call, CEO Alan Schnitzer said the company delivered strong results for both the quarter and the full year. He pointed to solid performance in underwriting and investments. He added that earnings were supported by strong underlying underwriting income and said current written margins remain attractive and sustainable.
Core income came in at $2.5 billion, or $11.13 per diluted share, with a core return on equity of 29.6%. Underwriting income rose 21% year over year, helped by favorable prior-year reserve development and lower catastrophe losses. Schnitzer also said disciplined execution across all three segments lifted net written premiums to $10.9 billion for the quarter. Within Business Insurance, net written premiums reached $5.5 billion. Domestic premiums in the segment grew 4% when excluding the property line.
The Travelers Companies, Inc. (NYSE:TRV) provides property casualty insurance across auto, home, and business. It operates through Business Insurance, Bond & Specialty Insurance, and Personal Insurance segments.
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