I have a well-deserved reputation as a cheapskate. I brown bag my lunches most days, keep my thermostat at 79 degrees, and — if my wife doesn’t intervene — I’ll generally wear my clothes until they’re moth-eaten and threadbare. I’m good with that. As Benjamin Franklin said, a penny saved is a penny earned.
Perhaps not shockingly, I take the same approach in my investing. I like cheap stocks and, specifically, cheap dividend stocks. I like getting paid in cold, hard cash, after all.
Now, as a general rule, price and value are two very different things. For example, Apple Inc. (NASDAQ:AAPL) trades for well over $150 per share. But considering it trades for just 14 times estimated 2017 earnings, I’d argue it’s one of a handful of truly cheap dividend stocks to buy in an otherwise expensive market. At the same time, Snap Inc (NYSE:SNAP) trades for less than $13 per share, barely half its IPO price … yet I’d argue that the profitless piece of junk is still too expensive.
But sometimes a stock that has a cheap share price really is a cheap stock. And today, we’re going to take a look at seven cheap dividend stocks to buy, all of which are trading for less than $20 per share. With a hundred dollar bill, you could buy at least five shares of any of these and still have cash left over.