5 Cheap DRIP Stocks To Buy Now

3. Verizon Communications Inc. (NYSE:VZ)

P/E Ratio as of January 25: 7.92
Share Price as of January 25: $40.07

Verizon Communications Inc. (NYSE:VZ) is an American multinational telecommunications company, based in New York. Through the company’s DRIP program, shareholders’ dividends can be reinvested automatically or can be directly deposited into their savings or checking accounts on dividend payment dates.

As of January 25, Verizon Communications Inc. (NYSE:VZ) has a share price of $40.07 and a price-to-earnings ratio of 7.92, which makes it one of the cheap DRIP stocks on our list.

Verizon Communications Inc. (NYSE:VZ) currently offers a quarterly dividend of $0.6525 per share for a dividend yield of 6.51%, as recorded on January 25. The company’s dividend growth streak stands at 16 years.

Highlighting the company’s wireless business, Cowen maintained an Outperform rating on Verizon Communications Inc. (NYSE:VZ) in January with a $49 price target. However, the firm showed concerns regarding cost pressures and interest expenses.

At the end of Q3 2022, 62 hedge funds in Insider Monkey’s database owned stakes in Verizon Communications Inc. (NYSE:VZ), up from 58 in the previous quarter. The collective value of these stakes is over $1.42 billion.

Mawer Investment Management mentioned Verizon Communications Inc. (NYSE:VZ) in its Q3 2022 investor letter. Here is what the firm has to say:

“There are a few other segments of our portfolios that displayed weakness in the quarter. Cable and telecommunication companies have been an area that has lagged the broader market as their worlds are increasingly colliding. Companies such as Verizon (NYSE:VZ) has been impacted as wireless operator is spending heavily to attract internet subscribers with fixed wired access and the cable companies are trying to build wireless businesses.”