In this article, we will take a look at some of the best cheap quarterly dividend stocks to invest in.
In the current market environment, investors are looking to seek stable income as a way to protect themselves against a possible recession. Business surveys from ISM and S&P Global have highlighted increasing concerns among companies about the impact of new tariffs, with the S&P Global survey projecting an annual GDP growth rate of only around 1% for the first quarter. While most forecasts predict growth of 0.5%, some nowcasting models indicate the possibility of a contraction. Markets are particularly focused on how the US administration will address the growing recession risks, especially regarding its approach to tariffs and trade agreements.
In addition, despite President Donald Trump’s decision to pause a significant tariff increase on multiple countries, Americans continue to fear a recession and rising inflation. Consumer sentiment dropped 8% in April compared to the previous month, reaching a final reading of 52.2, according to the University of Michigan’s latest survey. This level of sentiment marked the fourth-lowest in records dating back to 1952. Joanne Hsu, the survey’s director, made the following comment in the release:
“While this month’s deterioration was particularly strong for middle-income families, expectations worsened for vast swaths of the population across age, education, income, and political affiliation. Consumers perceived risks to multiple aspects of the economy, in large part due to ongoing uncertainty around trade policy and the potential for a resurgence of inflation looming ahead.”
Analysts suggest that investors worried about an economic slowdown might want to consider investing in dividend-stock funds, as these stocks have historically performed relatively well during recessions. Companies that pay dividends usually generate enough excess cash flow to sustain payments year after year. Dividend programs are often seen as a sign of strong financial discipline, as companies committed to paying dividends are generally hesitant to alter their policies. According to a Morningstar report, dividend-paying stocks outperformed the broader market during the recessions that began in July 1981, March 2001, and December 2007, with the stocks doing significantly better in two of those periods. However, they slightly underperformed during the short recession of 1980, which followed the Federal Reserve’s interest rate hikes to control the high inflation of the 1970s.
Within dividend investing, dividend growth stocks have outperformed those with high yields. A Morningstar report noted that dividend growth funds provided the most appealing long-term returns, as seen in the data presented. These funds not only offered the highest total returns but also achieved the best balance of risk and return, as measured by the Sharpe ratio. The report also pointed out that dividend growth strategies have generally performed the best during recessions. Except for 2001, when their greater exposure to technology stocks became a disadvantage, dividend-growth funds performed better than other dividend categories during recent recessionary periods. Given this, we will take a look at some of the best cheap quarterly dividend stocks.
Our Methodology:
For this list, we screened for dividend companies with strong dividend histories and yields of at least 1%, as of April 27. From that list, we picked dividend stocks with forward P/E ratios below 20, as of April 27. The low price-to-earnings ratio shows that they are traded below their intrinsic value. The stocks are ranked in descending order of their P/E multiples.
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10. NextEra Energy, Inc. (NYSE:NEE)
Forward P/E Ratio as of April 27: 18.02
NextEra Energy, Inc. (NYSE:NEE) is a Florida-based renewable energy company that runs one of the largest electric utilities in the US, Florida Power & Light (FPL), and boasts one of the world’s biggest renewable energy platforms, NextEra Energy Resources. These businesses generate consistent cash flow, which the company uses to pay dividends and reinvest in expanding its operations.
NextEra Energy, Inc. (NYSE:NEE) reported strong earnings for the first quarter of 2025. The company’s revenue came in at $6.25 billion, which showed a 9% growth from the same period last year. Its adjusted earnings per share increased by almost 9% compared to the same period last year, which is strong growth for a utility. It continues to benefit from solid performance at FPL and its renewable energy platform. FPL contributed $1.3 billion, or $0.64 per share, in adjusted net income, marking a rise of over 12% from the previous year. The company remains focused on making strategic capital investments to meet the growing power demand in Florida, all while keeping electricity costs affordable.
NextEra Energy, Inc. (NYSE:NEE)’s cash position also came in strong. The company ended the quarter with over $2.4 billion available in cash and cash equivalents. Its operating cash flow came in at $2.77 billion. This cash position has made the company a strong dividend payer. Currently, it offers a quarterly dividend of $0.5665 per share and has a dividend yield of 3.43%, as of April 27. NEE is one of the best cheap quarterly dividend stocks, as the company has been growing its payouts for 29 consecutive years.
9. Canadian Natural Resources Limited (NYSE:CNQ)
Forward P/E Ratio as of April 27: 11.98
Canadian Natural Resources Limited (NYSE:CNQ) is a leading producer of crude oil and natural gas, with ongoing operations in its key regions, including Western Canada, the UK section of the North Sea, and Offshore Africa. The energy company benefits from a strong asset portfolio, featuring a well-diversified production mix and long-lasting, low-decline resources that support its consistent dividend payments. These assets allow the company to generate stable cash flow and maintain operational flexibility, even during fluctuations in commodity markets. Furthermore, the increased output from its high-value synthetic crude operations, which have zero decline, helps to sustain steady cash generation and keep reserve replacement costs low.
Canadian Natural Resources Limited (NYSE:CNQ) showcased its financial strength, generating over $3.4 billion in operating cash flow during the latest quarter, up from $3 billion the previous year. By the end of fiscal 2024, the company had produced $4.5 billion in free cash flow. This strong cash performance enabled CNQ to return $1.7 billion to shareholders through dividends and share buybacks.
In March, Canadian Natural raised its quarterly dividend by 4.4% to C$0.5875 per share, marking the 25th consecutive year of dividend growth. The stock has a forward P/E ratio of 12, which makes it one of the best cheap quarterly dividend stocks. As of April 27, CNQ supports an attractive dividend yield of 5.58%.
8. VICI Properties Inc. (NYSE:VICI)
Forward P/E Ratio as of April 27: 11.59
An American real estate investment trust company, VICI Properties Inc. (NYSE:VICI) invests in casinos and other entertainment properties. The REIT has shown strong financial health and resilience, highlighted by its consistent dividend increases for investors. Another positive point is its focus on growth. Management is also working to diversify beyond the gaming sector, with a major strategy centered on providing loans to other businesses, opportunities that could potentially lead to future property acquisitions. Since the start of 2025, the stock has surged by over 11%.
In 2023, VICI Properties Inc. (NYSE:VICI) invested over $1 billion across several deals, including funding the expansion of The Venetian Resort Las Vegas, supporting the development of a Margaritaville resort in partnership with Homefield, and offering additional financing to Great Wolf Resorts. The company continued its investment activity in 2024, forming a strategic partnership with Cain International and Eldridge Industries. Its first move under this collaboration was a $300 million mezzanine loan to help fund the One Beverly Hills luxury mixed-use development.
VICI Properties Inc. (NYSE:VICI) also reported a strong cash position in the latest quarter, closing fiscal year 2024 with $524.6 million in cash reserves. It returned $456.7 million to shareholders through dividends in the fourth quarter alone. Since initiating its dividend policy in 2018, the company has increased its payouts every year. The company offers a quarterly dividend of $0.4325 per share and has a dividend yield of 5.37%, as of April 27. With a forward P/E ratio of 11.59, VICI is one of the best cheap quarterly dividend stocks.
7. National Fuel Gas Company (NYSE:NFG)
Forward P/E Ratio as of April 27: 11.55
National Fuel Gas Company (NYSE:NFG) ranks seventh on our list of the best cheap quarterly dividend stocks to invest in. It is a diversified energy company that engages in the production, gathering, transportation, storage, and distribution of natural gas. The stock is outperforming the broader market in 2025, surging by nearly 27% since the start of the year. This performance is driven by a string of better-than-expected earnings results and a major increase in its fiscal 2025 outlook.
In fiscal Q1 2025, National Fuel Gas Company (NYSE:NFG) reported revenue of $549.4 million, marking a 4.59% increase compared to the same period last year. The Pipeline & Storage segment delivered an $8.4 million (35%) rise in net income, largely driven by higher rates put in place after the Supply Corporation rate case settlement that took effect on February 1, 2024. The Utility segment also posted strong results, with net income up by $5.9 million (22%), helped by a three-year rate agreement in its New York service area.
National Fuel Gas Company (NYSE:NFG) is a strong dividend payer, having paid consistent dividends to shareholders for the past 121 years. In addition, the company is a Dividend King, with 54 consecutive years of dividend growth under its belt. Supported by higher natural gas prices and improved performance across its segments, National Fuel Gas Company raised its fiscal 2025 adjusted EPS guidance to a range of $6.50 to $7.00. The company also maintained a strong financial position, generating over $220 million in operating cash flow during the quarter. It offers a quarterly dividend of $0.515 per share and has a dividend yield of 2.64%, as of April 27.
6. Amcor plc (NYSE:AMCR)
Forward P/E Ratio as of April 27: 10.9
Amcor plc (NYSE:AMCR) is a global leader in sustainable packaging solutions, providing flexible and rigid packaging for clients across the food, beverage, healthcare, and personal care sectors. With a strong focus on sustainability, the company competes through its international presence and investments in recyclable and compostable packaging options. Its close partnerships with consumer goods companies help stabilize demand and support long-term contracts.
In the second quarter of fiscal 2025, Amcor plc (NYSE:AMCR) reported revenue of $3.24 billion, a slight decline of 0.3% compared to the same period last year. However, shipment volumes grew by 2.3% year-over-year, building on the 1.6% gain in the first quarter and marking the fourth consecutive quarter of volume growth. On a comparable constant currency basis, adjusted EBIT rose by approximately 5% to $363 million.
In the first half of fiscal 2025, Amcor plc (NYSE:AMCR) generated $228 million in operating cash flow, a significant improvement from $159 million a year earlier. The company continues to pay a quarterly dividend of $0.1275 per share and has a dividend yield of 5.35%, as of April 27. It has been rewarding shareholders with growing dividends for the past 41 years, which makes AMCR one of the best cheap quarterly dividend stocks to invest in.
5. Bank of America Corporation (NYSE:BAC)
Forward P/E Ratio as of April 27: 10.8
An American multinational investment bank and financial services company, Bank of America Corporation (NYSE:BAC) ranks fifth on our list of the best cheap quarterly dividend stocks to invest in. On April 23, the company declared a quarterly dividend of $0.26 per share, which was in line with its previous dividend. Overall, it has been a consistent dividend payer for the past 27 years, while raising its payouts for 11 consecutive years. The stock has a dividend yield of 2.62%, as of April 27.
Bank of America Corporation (NYSE:BAC) posted strong performance in the first quarter of 2025, generating $27.4 billion in revenue, a 6% increase compared to the same period last year. This growth was mainly fueled by a rise in noninterest income across all divisions. Net interest income also edged up by 3% year-over-year, reaching $14.4 billion.
Bank of America Corporation (NYSE:BAC)’s balance sheet remained solid, with average deposits climbing to $1.96 trillion, marking the seventh consecutive quarter of deposit growth. Bank of America’s Common Equity Tier 1 (CET1) ratio came in at 11.8% under the standardized method, comfortably above the 10.7% regulatory minimum. During the quarter, the bank returned $6.5 billion to shareholders through $2.0 billion in dividends and $4.5 billion in share buybacks.
The number of hedge funds tracked by Insider Monkey owning stakes in Bank of America Corporation (NYSE:BAC) grew to 113 in Q4 2024, from 98 in the previous quarter. The overall value of these stakes is over $40.2 billion. Warren Buffett’s Berkshire Hathaway was the company’s leading stakeholder in Q4.
4. U.S. Bancorp (NYSE:USB)
Forward P/E Ratio as of April 27: 9.15
U.S. Bancorp (NYSE:USB) is a Minnesota-based bank holding company. In the first quarter of 2025, the company posted revenue of $6.93 billion, marking a 3.7% increase compared to the same period a year earlier. The result also came in $18.6 million ahead of analysts’ expectations. Net income for the quarter totaled $1.7 billion. The company’s net interest margin reached 2.72%, up 2 basis points from the previous year and 1 basis point higher than the prior quarter.
As of March 31, 2025, U.S. Bancorp (NYSE:USB)’s Common Equity Tier 1 (CET1) capital ratio improved to 10.8%, up from 10.6% at the end of 2024. Average total loans rose by 2.1% year-over-year and by 0.9% on a quarter-over-quarter basis. On March 11, the company announced a quarterly dividend of $0.50 per share, maintaining its previous payout. U.S. Bancorp has a track record of raising its dividend for 14 consecutive years, which makes it one of the best cheap quarterly dividend stocks. The stock has a dividend yield of 5.01%, as of April 27.
At the end of Q4 2024, 48 hedge funds tracked by Insider Monkey held stakes in U.S. Bancorp (NYSE:USB), up from 46 in the previous quarter. These stakes have a consolidated value of over $2.37 billion. With over 24 million shares, Viking Global was the company’s leading stakeholder in Q4.
3. Jack in the Box Inc. (NASDAQ:JACK)
Forward P/E Ratio as of April 27: 4.9
Jack in the Box Inc. (NASDAQ:JACK) is an American fast-food restaurant chain, headquartered in California. The stock presents an undervalued opportunity with significant growth potential in 2025. JACK’s strategic approach to capital allocation stands out, as it regularly returns surplus cash to shareholders through robust buybacks. In addition, the company’s focus on enhancing operational efficiency and boosting profitability strengthens the argument for investment.
In fiscal Q1 2025, Jack in the Box Inc. (NASDAQ:JACK) saw a 3.7% year-over-year decline in total revenue, reaching $469.4 million, mainly due to Del Taco’s refranchising efforts. The company’s net income for the quarter was $33.7 million. Same-store sales showed a slight increase of 0.4%, with franchise locations up by 0.5%, while company-owned stores experienced a slight decrease of 0.4%.
Although the financial results were mixed, Jack in the Box Inc. (NASDAQ:JACK) reported a strong cash position, generating over $105.6 million in operating cash flow, which was a significant improvement from the negative operating cash flow of $22,675 in the same period last year. The company has maintained consistent dividend payments since 2014. Currently, it offers a quarterly dividend of $0.44 per share and has a dividend yield of 7.18%, as of April 27. With a forward P/E ratio of 4.9, JACK is one of the best cheap quarterly dividend stocks.
2. General Motors Company (NYSE:GM)
Forward P/E Ratio as of April 27: 4.24
General Motors Company (NYSE:GM) is an American multinational automotive company that sells trucks, cars, and auto parts, and offers software-based services and subscriptions. The company has been very active with share buybacks in recent years, significantly reducing its share count. From 2023 to 2025, the company announced $16 billion in buybacks, which notably influenced the stock’s performance. Additionally, GM introduced a new $6 billion share repurchase authorization and launched an accelerated share repurchase program to quickly execute $2 billion of this authorization.
In the fourth quarter of 2024, General Motors Company (NYSE:GM) posted revenue of $47.7 billion, marking an 11% increase from the previous year. However, net income fell by more than $5 billion, primarily due to one-off charges, including $4 billion in non-cash restructuring costs and write-downs related to certain joint ventures in China. Additionally, the company incurred $0.5 billion in expenses from halting funding for its Cruise robotaxi business.
On February 26, General Motors Company (NYSE:GM) announced a 25% increase in its quarterly dividend, raising it to $0.15 per share. GM has been paying consistent dividends since 2014, supported by its strong cash flow. In fiscal year 2024, the company reported $24 billion in both operating cash flow and free cash flow. Its quarterly dividend comes in at $0.15 per share for a dividend yield of 1.02%, as of April 27.
1. Viatris Inc. (NASDAQ:VTRS)
Forward P/E Ratio as of April 27: 3.78
Viatris Inc. (NASDAQ:VTRS) is a Pennsylvania-based global healthcare and pharmaceutical company. It is focused on reshaping its portfolio by moving towards more innovative, higher-margin products. Its recent strategy includes selling off non-core assets and pursuing selective acquisitions to simplify operations and improve profitability.
In the fourth quarter of 2024, Viatris Inc. (NASDAQ:VTRS) reported revenue of $3.53 billion, a decline of over 8% compared to the previous year, falling short of analysts’ expectations by more than $72 million. However, its New Products segment generated $582 million in revenue. The company also made strides in strengthening its balance sheet by reducing debt by $3.7 billion, achieving its long-term gross leverage target with a leverage ratio of 2.9x.
Despite mixed earnings, Viatris Inc. (NASDAQ:VTRS) maintained a strong cash position, generating $482.7 million in operating cash flow and $342.3 million in free cash flow during the quarter. The company has been paying regular dividends since introducing its policy in 2021, making it one of the best cheap quarterly dividends to invest in. It offers a quarterly dividend of $0.12 per share and has a dividend yield of 5.9%, as recorded on April 27.
Overall, Viatris Inc. (NASDAQ:VTRS) ranks first on our list of the best cheap quarterly dividend stocks. While we acknowledge the potential of VTRS as an investment, our conviction lies in the belief that some deeply undervalued dividend stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued dividend stock that is more promising than VTRS but that trades at 10 times its earnings and grows its earnings at double digit rates annually, check out our report about the dirt cheap dividend stock.
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