5 Cheap DRIP Stocks To Buy Now

In this article, we discuss 5 cheap DRIP stocks to buy now. If you want to read our detailed analysis of dividend reinvestment plans and the performance of dividend stocks in the past, go directly to read 14 Cheap DRIP Stocks To Buy Now. 

5. Bank of America Corporation (NYSE:BAC)

P/E Ratio as of December 21: 9.28
Share Price as of December 21: $33.10

Bank of America Corporation (NYSE:BAC) is one of the largest financial institutions in the US, offering a wide range of banking and financial services to individual consumers, small businesses, corporations, and institutional clients. The company’s quarterly dividend stands at $0.24 per share for a dividend yield of 2.89%, as of December 21. It is one of the best DRIP stocks to own as the company has been paying regular dividends to shareholders for the past 24 years.

According to Insider Monkey’s database of Q3 2023, 88 hedge funds owned stakes in Bank of America Corporation (NYSE:BAC), compared with 90 in the previous quarter. These stakes are collectively valued at over $31.3 billion. Warren Buffett’s Berkshire Hathaway was the company’s leading stakeholder in Q3.

4. Truist Financial Corporation (NYSE:TFC)

P/E Ratio as of December 21: 9.09
Share Price as of December 21: $36.21

Truist Financial Corporation (NYSE:TFC) is next on our list of the best DRIP stocks to own. The stock is priced attractively, with a price-to-earnings ratio of 9.09x, as of December 21. The company maintains an eight-year streak of consistent dividend growth and currently pays a quarterly dividend of $0.52 per share. Its dividend yield was recorded at 5.70% on December 21.

At the end of the third quarter of 2023, 47 hedge funds owned stakes in Truist Financial Corporation (NYSE:TFC), growing from 42 in the previous quarter, according to Insider Monkey’s database. These stakes are collectively valued at nearly $1 billion.

3. Citigroup Inc. (NYSE:C)

P/E Ratio as of December 21: 7.98
Share Price as of December 21: $50.3

Citigroup Inc. (NYSE:C) is a global financial services company that operates in various segments of the banking and financial industry, providing a wide range of financial products and services to its consumers. The company pays a quarterly dividend of $0.53 per share and has a dividend yield of 4.19%, as of December 21. It is one of the best DRIP stocks to own as the company has been making regular dividend payments since 1990.

Of the 910 hedge funds in Insider Monkey’s database at the end of Q3 2023, 79 funds owned stakes in Citigroup Inc. (NYSE:C), up from 75 in the previous quarter. The consolidated value of these stakes is nearly $7 billion.

2. Shell plc (NYSE:SHEL)

P/E Ratio as of December 21: 7.77
Share Price as of December 21: $65.38

Shell plc (NYSE:SHEL) is a multinational energy company primarily engaged in various aspects of the oil and gas industry. The company offers a quarterly dividend of $0.662 per ADS and has a dividend yield of 3.77%, as of December 21. It is one of the best cheap DRIP stocks to own as the stock has a P/E ratio of 7.77.

The number of hedge funds tracked by Insider Monkey owning stakes in Shell plc (NYSE:SHEL) grew to 49 in Q3 2023, from 43 in the previous quarter. The collective value of these stakes is over $3.26 billion. Among these hedge funds, Fisher Asset Management was the company’s leading stakeholder in Q3.

1. Verizon Communications Inc. (NYSE:VZ)

P/E Ratio as of December 21: 7.50
Share Price as of December 21: $37.2

Verizon Communications Inc. (NYSE:VZ) tops our list of the best DRIP stocks to own. The multinational telecommunications company has raised its dividend payouts for 17 consecutive years and currently pays a quarterly dividend of $0.665 per share. The stock’s dividend yield on December 21 came in at 7.11%.

As per Insider Monkey’s database of Q3 2023, 61 hedge funds owned stakes in Verizon Communications Inc. (NYSE:VZ), growing from 53 in the previous quarter. These stakes are collectively valued at nearly $1.4 billion.

You can also take a look at 26 Best Stocks For Dividends and 12 Best Tech Stocks To Buy On the Dip