Finding cheap dividend stocks that are actually buy-worthy is tough. On the one hand, you’re looking for significant dividend yield. On the other hand, you’d also like to invest in a business that’s still growing. And on the third hand, you don’t want to overpay.
On top of all that, macroeconomic risks are a constant concern, primarily with interest rates possibly going up.
Fortunately, even if the Federal Reserve does raise rates three times this year as projected, it’ll only be by 25 basis points each at most. For most dividend stocks, that shouldn’t trigger a drop in prices — especially in dividend stocks that have a high enough yield that they’re not competing with Treasuries for attention.
Today, I’m looking at seven cheap dividend stocks to buy now. I’m defining a cheap dividend stock as one that trades at a discount to free cash flow value, and I’m only looking at companies with sound businesses that yield 4% or more.
In no particular order …