There is no joy like receiving passive income each quarter. I am someone who loves to receive dividend income and see my money grow without having to do anything. But money will multiply only if you put it in the right place, and dividend stocks can be an ideal place to start. If you seek steady dividend income and long-term growth, consider the overlooked dividend stocks mentioned here. They have a history of raising dividends and are known for bringing stability to your portfolio.

These are solid businesses that have gained investor trust and become industry experts. Whether you are only starting or rebalancing your portfolio, here are three dividend stocks to consider, each trading below $100 with a dividend yield over 3%. Now, without further delay, let’s dive deep into them!

Coca-Cola (KO)

Dividend yield: 3.13%

Beverage giant Coca-Cola (NYSE:KO) is often overlooked because it keeps moving sideways and hasn’t shown much upside over the past two years. Trading at $62, the stock is up only 3% year-to-date and has been moving between $52 and $62 for the past 12 months. However, looking at the company’s rich history, legacy business, and global presence, Coca-Cola is one of the best investments you can make.

It is Warren Buffett’s favorite stock for a reason. I think investors need to look beyond the financials when it comes to this company. It has seen several market ups and downs and survived them all. 

When you put money into this company, you are investing in the brand. Coca-Cola has licensed the formula to beverage makers across the world and this has helped increase production significantly. It also ensures steady and consistent availability of the products across the globe. 

In the first-quarter results, the company reported revenue of $11.3 billion and earnings per share (EPS) of $0.72. Organic sales increased 11% in the quarter and the management is aiming for an organic revenue growth of 8% to 9%, up from the previous range of 6% to 7%. 

The company enjoys stable cash flow and has been paying dividends for 63 years. It recently increased the dividend by 5.4% to $0.485 per share per quarter. With a yield of 3.13%, Coca-Cola is one of the best dividend stocks to own. You may not be able to find a stock that offers the same stability and reliability to your portfolio. 

Morgan Stanley (MS)

Dividend yield: 3.44%

Another overlooked dividend stock is Morgan Stanley (NYSE:MS). Trading at $98, the stock is up 5% YTD and 18% in the past 12 months. Earlier, the company generated the majority of its revenue from traditional banking and trading but has moved towards asset management and investment banking.

The transition has paid off and the company has seen steady growth. This has also made it stable and reliable. Today, it derives a higher revenue from wealth management.

In the first quarter, the net income stood at $3.4 billion for a revenue of $15.1 billion. The investment banking revenue increased 16% YoY while the wealth management segment was up 5%.

Growth in investment banking helped the profit jump 14% YOY.  It also completed two acquisitions back in 2020, E-Trade and Eaton Vance which has helped with revenue growth. It reported an EPS of $2.02 which is up 19% YOY. 

Morgan Stanley has a dividend yield of 3.44% and the dividend has grown 27% in the past 5 years. It has increased dividends for 11 consecutive years. With an improved market and better economic conditions, Morgan Stanley could be in a better position to deliver higher dividends. The company has had a good start to the year and is on a roll. 

With investment banking back in full force, it makes sense to invest in Morgan Stanley before it hits the triple digits.

Pfizer (PFE)

Dividend yield: 5.82%

Beaten-down Pfizer (NYSE:PFE) is a value stock, and investors who manage to bag it at the current level could be setting themselves up for massive gains in the long-term. Exchanging hands for $28, the stock has dropped 21% in the past 12 months and has lost most of its value since the pandemic. Its claim to fame was the COVIDvaccine but investors need to realize that there is so much more to Pfizer.

While the past few years haven’t been easy for the company it has successfully invested the cash it earned during the pandemic into drugs that can become blockbusters in the next few years.

It acquired Seagen for $43 billion, a cancer drug developer which already has four approved medicines. This is its biggest investment in the recent years. It received nine FDA approvals in 2023 and was recently granted full approval for the cervical cancer drug. 

Pfizer reported a 19% drop in revenue in the first quarter which has led to the stock sell-off, but the management has reaffirmed the full-year revenue guidance of $58.5 to $61.5 billion. PFE is one of the most overlooked dividend stocks in 2024.

I think Pfizer’s worst days are over, and we could start seeing growth through its blockbuster drugs. The company is working on reducing operational costs and this could help improve the bottom line. It enjoys a dividend yield of 5.82% and has raised the dividends annually since 2009. I think it has enough liquidity to keep rewarding investors and raise dividends further. 

On the date of publication, Vandita Jadeja did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.