Published on Apr 07, 2025 5 min read

Top 10 Best Cheap Dividend Stocks to Watch Right Now

Investing in dividend stocks can be a smart way to grow your wealth and earn steady income over time. Cheap dividend stocks are especially attractive because they offer high dividend yields at lower stock prices. This makes them a great choice for beginners or anyone looking to invest without spending too much. Here, we’ve compiled a list of the top 10 best cheap dividend stocks to watch right now.

What are dividend stocks?

Shareholders who own dividend stocks receive frequent payments of dividends from the company. Shareholders receive profits from the company through dividend distributions because they own stock. Companies distribute dividends to their shareholders through quarterly payments although their policy permits payments once per year or twice yearly. This stock category provides shareholders with regular income along with prolonged market expansion possibilities.

1. AT&T (T)

The telecommunications organization AT&T maintains a strong reputation for distributing dividends to its shareholder base. through its stablished market position and proof of reliability AT&T presents investors with attractive dividend distributions that appeal to those seeking dividend income. People interested in portfolio stability find AT&T appealing because the company has implemented operational streamlining measures and business core focus tactics. Dividend-seeking investors can safely choose AT&T as an investment despite market competition in the telecom sector.

2. Verizon Communications (VZ)

Verizon Communications operates as a leading telecom business which provides investors generous dividend returns. The wide wireless network and stable customer numbers at Verizon lead to significant cash inflow that supports constant dividend distributions. The company maintains investment focus on 5G technology and infrastructure as it both establishes growth prospects and generates shareholder value. Investors who want stability along with steady dividend payments should consider Verizon as their investment choice because of its dependable dividend system and stable financial condition.

3. Chevron Corporation (CVX)

Chevron Corporation is one of the largest energy companies in the world, with a diverse portfolio of oil and gas assets. The company has a strong financial position and well-managed operations, making it a reliable dividend stock. Chevron's commitment to reducing costs and increasing efficiency has helped it weather the recent downturn in the energy sector. With rising global demand for energy, Chevron is well-positioned to continue its growth trajectory, providing steady dividends along the way.

4. Pfizer Inc. (PFE)

Pharmaceutical giant Pfizer Inc. is another top player on our list of cheap dividend stocks to watch right now. The company boasts an impressive history of dividend payments, with consistent increases over the years. Despite facing some setbacks in its drug development pipeline, Pfizer remains a strong player in the healthcare industry and has successfully diversified its portfolio through strategic acquisitions. With a solid balance sheet and promising future prospects, Pfizer is an attractive option for income-seeking investors.

5. Johnson & Johnson (JNJ)

Another healthcare giant, Johnson & Johnson has been paying dividends to its shareholders since 1944. The company's well-known consumer brands and diverse product portfolio have made it a stable performer in the market. With a strong focus on innovation and continuous investments in research and development, Johnson & Johnson is expected to maintain its position as a reliable dividend stock. Its consistent dividend growth and strong financials make it a top pick for long-term investors.

6. The Procter & Gamble Company (PG)

The Procter & Gamble Company is a household name with a wide range of popular consumer products under its belt. As one of the oldest companies in the US, P&G has built a reputation for delivering consistent returns to its shareholders through dividends. Its strategic focus on cost-cutting measures and investments in digital transformation have helped boost its profitability and ensure steady dividend payments. With a reliable track record and promising future plans, P&G remains an appealing option for dividend investors.

7. Target Corporation (TGT)

Target Corporation is a leading retailer that has been consistently increasing its dividend payments over the years. With a strong brand and customer loyalty, Target has successfully navigated through the challenges posed by e-commerce giants like Amazon. The company's investments in online sales channels and delivery services have helped it remain competitive and continue its growth trajectory. Its solid financials and commitment to shareholder value make Target an attractive cheap dividend stock to watch.

8. General Motors Company (GM)

Automaker General Motors is another top contender on our list of cheap dividend stocks to consider for your portfolio. The company boasts a strong market position and a diverse product lineup, making it well-positioned for future growth. Despite facing some challenges in recent years, including the impact of the pandemic on its operations, GM has remained committed to delivering value to its shareholders through consistent dividend payments. With a focus on electric and autonomous vehicles, GM is an exciting option for investors looking for long-term growth potential.

9. Coca-Cola Company (KO)

Coca-Cola Company, one of the largest beverage companies in the world, has a long history of paying dividends to its shareholders. The company's iconic brand and wide distribution network have helped it maintain a strong market position despite changing consumer preferences. As it continues to diversify its product portfolio and invest in sustainable practices, Coca-Cola is well-positioned for future growth and providing steady income to its investors.

McDonald's Corporation (MCD)

McDonald's Corporation is a globally recognized fast-food chain with a strong presence in over 100 countries. The company has a proven track record of delivering value to its shareholders through consistent dividend payments, even during times of economic uncertainty. As it continues to expand its menu offerings and invest in initiatives like digital ordering and delivery, McDonald's is expected to maintain its market leadership and provide steady returns for its investors.

Conclusion

Investing in dividend stocks can be a smart strategy for long-term investors looking to generate passive income. By choosing reliable and stable companies with strong financials, investors can benefit from consistent dividend payments while also potentially earning capital gains over time. With this list of cheap dividend stocks to watch, you now have some top options to consider for your portfolio.