In this article, we will take a look at the 5 Cheap DRIP Stocks to Buy Now. For deeper discussion and analysis, have a look at the 14 Cheap DRIP Stocks to Buy Now.
5. QUALCOMM Incorporated (NASDAQ:QCOM)
Forward P/E: 13.95
On March 30, Goldman Sachs analyst James Schneider initiated coverage of QUALCOMM Incorporated (NASDAQ:QCOM) with a Neutral rating and a $135 price target, implying about 4% upside. The analyst said the company is working to diversify its revenue by using its intellectual property to expand into adjacent markets such as automotive, PCs, and data centers. At the same time, Goldman believes these efforts could be partly offset by share losses at key smartphone customers, including Apple. The firm noted that these losses may act as a headwind to Qualcomm’s fundamentals.
A few days earlier, on March 26, Bernstein downgraded Qualcomm to Market Perform from Outperform. It lowered its price target to $140 from $175. The firm pointed to memory-related pressures, saying higher prices are having a “deleterious effect” on overall smartphone shipments. It added that consensus estimates for Qualcomm now appear “too high.” Bernstein also said that potential positives, including share buybacks and the company’s data center initiatives, may not be enough to offset weaker smartphone demand. It also flagged risk tied to the possible expiration of the Apple license agreement within the next year.
QUALCOMM Incorporated (NASDAQ:QCOM) develops and commercializes core technologies for the wireless industry, including 3G, 4G, and 5G connectivity, as well as high-performance, low-power computing and on-device artificial intelligence.
4. Archer-Daniels-Midland Company (NYSE:ADM)
Forward P/E: 12.79
On March 25, BMO Capital analyst Andrew Strelzik raised the firm’s price recommendation on Archer-Daniels-Midland Company (NYSE:ADM) to $65 from $63. It maintained a Market Perform rating on the shares. The update came as part of a broader note on Agribusiness and Protein commodities. The firm said it adjusted its models to reflect updated feedstock prices, higher energy costs, and a recovery in U.S. beef margins in March after weaker levels in February.
During the Q4 2025 earnings call, Chairman, CEO, and President Juan Luciano said the company expects adjusted EPS for 2026 to fall between $3.60 and $4.25. CFO and Executive Vice President Monish Patolawala said that earlier clarity on policy decisions could open up more opportunities, as the company anticipates a more supportive operating environment. He also said the company plans to stay disciplined in how it allocates capital, with a focus on generating strong cash flow while continuing to reduce costs.
He added that the company remains on track to deliver total cost savings of $500 million to $750 million over a three- to five-year period, a program that started in 2025. The company expects capital expenditures to be in the range of $1.3 billion to $1.5 billion in 2026. For the first quarter of 2026, it said crush margins are expected to remain in line with Q4 2025 levels. The Nutrition segment is also expected to continue improving, both year over year and sequentially.
Archer-Daniels-Midland Company (NYSE:ADM) operates as a global agricultural supply chain manager and processor, supporting food production by linking local demand with global capabilities. It also provides nutrition solutions for both humans and animals.
3. AT&T Inc. (NYSE:T)
Forward P/E: 12.11
On March 31, Goldman Sachs analyst Michael Ng said AT&T Inc. (NYSE:T) has introduced OneConnect, a simplified wireless and 1 gig residential fiber service aimed at new customers. He noted that the offering brings service back to the center of AT&T’s strategy. The digital-only product is expected to address common issues in customer acquisition and reduce service inquiries tied to billing complexity and changes. It may also help the company expand in the value segment, particularly among one- to two-line households.
Goldman views the move as positive for AT&T and negative for Apple. The firm also said the impact on Verizon Communications and T-Mobile is likely to be neutral, as any share gains by AT&T could be offset by lower device subsidies across the industry.
On the same day, Reuters reported that AT&T had agreed to invest about $1 billion to improve the Commerce Department’s FirstNet system. The agreement is also expected to deliver around $1 billion in cost savings through reduced rates, according to a U.S. government agency.
AT&T was originally awarded the 25-year contract to build the federal emergency network in 2017, following recommendations made after the 9/11 attacks. FirstNet is designed to help first responders, including medical personnel, firefighters, and police officers, communicate critical information on a single network. It is currently used by around 31,000 U.S. agencies.
The agreement was enabled by an executive order issued by Donald Trump in early 2025, which directed federal agencies to review existing contracts, according to the National Telecommunications and Information Administration.
AT&T Inc. (NYSE:T) operates as a global telecommunications and technology services provider. The company reports through its Communications and Latin America segments.
2. Bank of America Corporation (NYSE:BAC)
Forward P/E: 11.85
On March 31, Morgan Stanley lowered its price recommendation on Bank of America Corporation (NYSE:BAC) to $61 from $67. It reiterated an Overweight rating on the shares. The firm said the median bank stock in its coverage has declined about 5% over the past 30 days. It pointed to concerns around the potential impact of the ongoing Middle East conflict on economic growth and inflation, along with pressure from private credit headlines. As a result, Morgan Stanley reduced price targets across the group by about 9% on average, reflecting lower valuation multiples in a higher-risk environment.
A few days earlier, on March 26, Truist analyst John McDonald lowered the firm’s price target on Bank of America to $57 from $60 and maintained a Buy rating. The update came as part of a broader note on regional and universal banks. The analyst said that while sentiment has been weighed down by macro and structural concerns, including war, rates, stagflation, AI displacement, and private credit, recent updates for the quarter have been relatively positive. He also noted that management commentary has sounded constructive for the year ahead.
Bank of America Corporation (NYSE:BAC) operates as both a bank holding company and a financial holding company. Its business is organized into Consumer Banking, Global Wealth & Investment Management, Global Banking, and Global Markets.
1. Verizon Communications Inc. (NYSE:VZ)
Forward P/E: 9.03
On March 31, Barclays raised its price recommendation on Verizon Communications Inc. (NYSE:VZ) to $47 from $43. It reiterated an Equal Weight rating on the shares. The firm said pricing across both wireless and broadband is starting to trend lower. Even so, telecom stocks have held up, with the analyst noting they are being treated as “defensive longs due to macro backdrop which makes earnings set-up asymmetric.”
On March 30, Reuters reported that a federal judge granted Verizon Wireless a preliminary injunction blocking rival T-Mobile from running ads that promised consumers more than $1,000 in annual savings for switching carriers. U.S. District Judge Lewis Kaplan said Verizon is likely to succeed in its claim that T-Mobile’s “Save Over $1,000” campaign amounted to false advertising and could cause irreparable harm. He added that granting the injunction would support the public interest by promoting truthful advertising and “ensuring that what consumers see is what they get.” T-Mobile and its legal team did not immediately respond to requests for comment.
In its February 4 lawsuit, Verizon argued that T-Mobile compared its promotional pricing to Verizon’s standard rates and overstated the value of services that “the other guys leave out.” T-Mobile filed a countersuit on March 2, saying Verizon’s campaign featuring George Washington, Abraham Lincoln, and Benjamin Franklin was misleading, arguing the company could not promise a “better deal” for T-Mobile or AT&T Mobility customers.
Verizon Communications Inc. (NYSE:VZ) operates as a holding company that, through its subsidiaries, provides communications, technology, information, and streaming services to consumers, businesses, and government clients.
While we acknowledge the potential of VZ as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than VZ and that has 100x upside potential, check out our report about the cheapest AI stock.
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