12 Incredibly Cheap Dividend Stocks to Buy Now

1. General Motors Company (NYSE:GM)

Forward P/E Ratio as of March 14: 4.10

General Motors Company (NYSE:GM) is an American multinational automotive company that sells trucks, cars, auto parts, and offers software-based services and subscriptions. In the fourth quarter of 2024, the company generated $47.7 billion in revenue, an 11% increase from the prior year. However, net income declined by more than $5 billion due to one-time charges, including $4 billion in non-cash restructuring costs and write-downs tied to certain joint ventures in China. Additionally, the company incurred $0.5 billion in expenses after opting to discontinue funding for its Cruise robotaxi business.

Rather than investing further in robotaxi development—a costly and time-intensive venture—General Motors Company (NYSE:GM) has shifted its focus to driver-assist technologies, which offer a faster path to revenue. This strategic pivot has shown promising results, with CEO Mary Barra noting that approximately 20% of the nearly 18,000 Super Cruise users opted to continue their subscription after their three-year trial period ended in 2024.

On February 26, General Motors Company (NYSE:GM) announced a 25% hike in its quarterly dividend, raising it to $0.15 per share. GM has consistently paid dividends since 2014, supported by its strong cash flow. In FY24, both its operating cash flow and free cash flow stood at $24 billion. As of March 14, the stock carried a dividend yield of 0.99%.

Overall, General Motors Company (NYSE:GM) ranks first on our list of the best dividend stocks. While we acknowledge the potential for GM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than GM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.