In this article, we discuss 13 Cheap High Dividend Stocks To Invest In Now.
According to Deutsche Bank Wealth Management, the global economy in 2025 is expected to face some tough challenges, with growth forecasts looking modest – the US GDP at 2.0%, the Eurozone at 0.9%, and China at 4.2%. Inflation may persist due to higher fiscal spending and potential tariff hikes, which could limit central banks’ ability to lower interest rates. This could in turn lead to more market volatility. Productivity has been growing slowly, and in some cases, it has even declined, affecting long-term living standards. However, AI and new technologies could help drive productivity higher, though it will take time to see noticeable results.
Despite these challenges, 2025 will be about navigating turbulent times, with a clear gap between the high-tech, high-productivity US economy and Europe, which is lagging behind. Policy focus is shifting from monetary to fiscal, with China taking the lead on new initiatives. Stocks, especially in the United States, remain a strong opportunity for growth, while European equities offer potential despite economic struggles.
In Q4 2024, S&P Global reported that US domestic stocks saw a net dividend increase of $11.7 billion, which was lower than the $13.7 billion increase in the same quarter last year. Overall, dividend increases totaled $14.2 billion for the quarter, which was down from $17.5 billion in Q4 2023. For the entire year, dividends grew by $53.3 billion, a significant jump from the previous year’s $36.5 billion. On a per-share basis, the broader market’s dividends hit a record, growing by 6% to $19.81 per share. In Q4 last year, there were 635 dividend increases, which is a 10.2% decrease compared to the 707 increases in Q4 2023.
Over the past 12 months, total dividend increases amounted to $71.4 billion, up from $65.1 billion in the previous year. Interestingly, the number of companies cutting dividends decreased by 19.5% in Q4, with only 33 companies lowering their payouts, compared to 41 the year before. Here, we discuss some of the best cheap high dividend stocks.
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Our Methodology
For this article, we used the Finviz stock screener to filter out stocks with dividend yields over 3% and P/E ratios under 15. We focused on picking stocks with a consistent record of paying dividends, offering dividend growth, and being financially stable to steer clear of yield traps. The list below is ranked in ascending order of the dividend yield as of February 17. We have also mentioned the P/E ratios and hedge fund sentiment as of Q3 2024.
At Insider Monkey, we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here)
13. ConocoPhillips (NYSE:COP)
Number of Hedge Fund Holders: 66
Dividend Yield as of February 17: 3.24%
P/E Ratio: 12.41
ConocoPhillips (NYSE:COP) is a Houston-based energy company that produces and distributes crude oil, bitumen, natural gas, liquefied natural gas, and natural gas liquids. It ranks 13th on our list of the best dividend stocks to buy, with a dividend yield of 3.24% as of February 17.
On February 10, Raymond James downgraded ConocoPhillips (NYSE:COP) from Strong Buy to Outperform and cut its price target from $157 to $124. This comes despite the company outpacing Q4 expectations, with earnings 8% higher than analysts predicted and production beating forecasts, given the solid growth in the Lower 48 states. The recent Marathon Oil acquisition is already paying off, reflected in a leaner 2025 capex forecast of under $13 billion. That said, Q1 2025 production might take a slight hit due to weather and maintenance slowdowns. Still, Raymond James sees COP as one of the best-run exploration and production companies out there, with a solid global asset portfolio and an attractive valuation.
ConocoPhillips (NYSE:COP) expects 2025 to be its biggest year for long-cycle spending, hitting around $3 billion. After that, a wave of new projects will come online from 2026 to 2029, adding about $3.5 billion in extra cash flow from key developments like NFV Port Arthur, NFS, and Willow. This should raise annual free cash flow by roughly $6 billion compared to 2025. On the shareholder front, COP is set to return $10 billion this year, $4 billion in dividends, and $6 billion in buybacks. The plan is to repurchase all the shares issued for the Marathon Oil deal within two to three years, even if oil prices dip.
According to Insider Monkey’s Q3 data, 66 hedge funds were long ConocoPhillips (NYSE:COP), compared to 72 funds in the prior quarter. Boykin Curry’s Eagle Capital Management was the biggest stakeholder of the company, with a position worth $1.6 billion.
12. The Hershey Company (NYSE:HSY)
Number of Hedge Fund Holders: 33
Dividend Yield as of February 17: 3.47%
P/E Ratio: 14.73
The Hershey Company (NYSE:HSY) is a global confectionery giant known for its chocolates, snacks, and pantry items. It operates across three segments – North America Confectionery, North America Salty Snacks, and International. Hershey expects lower profits in 2025 due to record-high cocoa prices, which have nearly tripled. Supply shortages in West Africa are driving costs up, putting pressure on margins. The company now forecasts earnings per share between $6.00 and $6.18, below analysts’ $7.34 estimate.
On February 5, The Hershey Company (NYSE:HSY) declared quarterly dividends of $1.370 per share on common stock and $1.245 on Class B common stock, payable on March 14, to shareholders on record as of February 17. This is the 380th consecutive dividend for the common shares and the 161st for Class B shares. It is one of the best dividend stocks to invest in, ranking 12th on our list. Hershey offers a dividend yield of 3.47% as of February 17.
According to Insider Monkey’s Q3 data, 33 hedge funds were bullish on The Hershey Company (NYSE:HSY), compared to 39 funds in the earlier quarter. Cliff Asness’ AQR Capital Management was a prominent stakeholder of the company, with 331,887 shares worth $63.6 million.
11. HSBC Holdings plc (NYSE:HSBC)
Number of Hedge Fund Holders: 14
Dividend Yield as of February 17: 3.63%
P/E Ratio: 9.05
HSBC Holdings plc (NYSE:HSBC) is a London-based global banking and financial services company that operates through Wealth and Personal Banking, Commercial Banking, and Global Banking and Markets segments. The company is set to cut more jobs in its investment banking division as CEO Georges Elhedery pushes forward with his cost-cutting plans. The layoffs, starting in Asia and expanding globally, will target underperformers and redundant roles. Some cuts have already begun in the markets division, with more coming in the next few weeks. Since taking over, Elhedery has already reduced his executive committee by nearly a third and merged banking divisions to simplify operations.
HSBC Holdings plc (NYSE:HSBC) reported $17 billion in revenue for the third quarter of 2024, a $1.1 billion increase from the previous year, driven by $1.6 billion in fee and other income, including gains in transaction banking, wealth, equities, and global debt markets. The bank also announced $4.8 billion in shareholder distributions, including a $0.10 per share dividend and a $3 billion share buyback, set to be completed by February 2025. HSBC is one of the best dividend stocks to consider for an income portfolio.
According to Insider Monkey’s third-quarter database, 14 hedge funds held stakes in HSBC Holdings plc (NYSE:HSBC), the same as the prior quarter. Ken Griffin’s Citadel Investment Group was the biggest stakeholder of the company.
10. Exxon Mobil Corporation (NYSE:XOM)
Number of Hedge Fund Holders: 86
Dividend Yield as of February 17: 3.66%
P/E Ratio: 13.49
American energy titan Exxon Mobil Corporation (NYSE:XOM) stands 10th on our list of the best dividend stocks. The company, along with consortium partners Hess and CNOOC, is seeking permits for its first gas-focused project in Guyana, set to boost oil and gas production. Exxon plans to increase oil output to 940,000 bpd in 2025 and 1.7 million bpd by 2029. The Longtail project, launching in 2030, will add 250,000 bpd of oil and 1 billion cubic feet of gas per day.
Over the past five years, Exxon Mobil Corporation (NYSE:XOM) has grown earnings at an average annual rate of nearly 30%. In 2024 alone, the company generated $55 billion in operating cash flow, one of its best performances in a decade. In total, the company has returned over $125 billion through dividends and buybacks, $30 billion more than its biggest rival.
On January 31, Exxon Mobil Corporation (NYSE:XOM) declared a quarterly dividend of $0.99 per share, in line with previous. The dividend is distributable on March 10, to shareholders of the company as of February 12.
Among the hedge funds tracked by Insider Monkey, 86 funds held stakes in Exxon Mobil Corporation (NYSE:XOM) at the end of Q3 2024, compared to 92 in the earlier quarter. Ken Fisher’s Fisher Asset Management was the largest stakeholder of the company, with a position worth $3.4 billion.
9. Comcast Corporation (NASDAQ:CMCSA)
Number of Hedge Fund Holders: 72
Dividend Yield as of February 17: 3.73%
P/E Ratio: 8.55
Comcast Corporation (NASDAQ:CMCSA) is a Philadelphia-based global media and technology company that provides broadband, wireless, and video services, including Sky-branded TV networks and advertising. A Comcast-Charter merger has been the talk of Wall Street for a while now. While neither company has come to an agreement, TD Cowen analysts commented on January 31 that they see a Comcast-Charter merger as strategically beneficial due to potential scale advantages and synergies, especially with their existing Xumo joint venture.
In 2024, Comcast Corporation (NASDAQ:CMCSA) hit record highs with $124 billion in revenue and $38 billion in adjusted EBITDA, while adjusted EPS grew by 9%. The company pulled in $3.3 billion in free cash flow for Q4 and $12.5 billion for the year, returning $13.5 billion to shareholders, including $8.5 billion in stock buybacks. On January 30, 2025, the company announced a 6.5% quarterly dividend increase to $0.33 per share, set to be paid on April 23 to shareholders on record as of April 2. It is one of the best dividend stocks to consider.
According to Insider Monkey’s third-quarter database, Comcast Corporation (NASDAQ:CMCSA) was part of 72 hedge fund portfolios, up from 61 in the prior quarter. Jean-Marie Eveillard’s First Eagle Investment Management is the largest stakeholder in the company, with 31.8 million shares worth $1.3 billion.
8. Merck & Co., Inc. (NYSE:MRK)
Number of Hedge Fund Holders: 86
Dividend Yield as of February 17: 3.90%
P/E Ratio: 12.53
Merck & Co., Inc. (NYSE:MRK) is a New Jersey-based global healthcare company that develops treatments for oncology, immunology, neuroscience, virology, cardiovascular diseases, and diabetes. The company also has an animal health division focused on veterinary pharmaceuticals, vaccines, and health management solutions. Merck & Co., Inc. (NYSE:MRK) is one of the best dividend stocks to invest in.
Merck’s cancer drug Keytruda is still a powerhouse, raking in $7.8 billion in Q4 2024, up 21% from last year. Meanwhile, the company’s new pulmonary arterial hypertension drug, Winrevair, is off to a strong start with $200 million in sales. Looking ahead, Merck & Co., Inc. (NYSE:MRK) is banking on a pipeline of 20 potential blockbuster drugs for oncology, ophthalmology, and HIV, which they believe could bring in over $50 billion in revenue.
Merck remains committed to growing its dividend over time and prioritizing business development through value-driven deals. The company recently increased its share repurchase authorization by $10 billion, bringing the total to $12 billion. On January 28, Merck & Co., Inc. (NYSE:MRK) declared a $0.81 per share quarterly dividend, payable on April 7, to shareholders on record as of March 17.
According to Insider Monkey’s Q3 database, 86 hedge funds held stakes in Merck & Co., Inc. (NYSE:MRK), compared to 96 funds in the last quarter. Ken Fisher’s Fisher Asset Management was the biggest position holder in the company, with a stake worth $1.6 billion.
7. General Mills, Inc. (NYSE:GIS)
Number of Hedge Fund Holders: 30
Dividend Yield as of February 17: 4.08%
P/E Ratio: 12.94
Founded in 1866, General Mills, Inc. (NYSE:GIS) is headquartered in Minneapolis, Minnesota. It is a global food company that produces and markets a wide range of branded consumer foods and pet products. It operates through four segments – North American retail, International, Pet, and North American Foodservice. On January 27, the company announced that it has finalized the sale of its Canadian yogurt business, including Yoplait, Liberté, and a manufacturing facility in Québec, to Sodiaal. The company expects to close the sale of its US yogurt business to Lactalis in 2025, pending regulatory approvals. These transactions will not impact General Mills’ fiscal 2025 outlook for organic net sales growth, operating profit, or free cash flow conversion.
General Mills, Inc. (NYSE:GIS) aims for strong cash generation, expecting to hit at least 95% free cash flow conversion in fiscal 2025. The company is also reshaping its portfolio, with around 30% of its net sales base changing since 2018. In the first half of 2024, operating cash flow jumped 19% to $1.8 billion, given the shifts in accounts payable. GIS invested $301 million in capital projects and returned $1.2 billion to shareholders through dividends and share buybacks.
On January 28, General Mills, Inc. (NYSE:GIS) announced a $0.60 per share quarterly dividend. The dividend is set to be distributed on May 1, to shareholders on record as of April 10. The company has consistently paid dividends for 126 years, which makes it one of the best dividend stocks to invest in.
According to Insider Monkey’s third-quarter database, 30 hedge funds were long General Mills, Inc. (NYSE:GIS), compared to 29 funds in the second quarter. Ken Griffin’s Citadel Investment Group was the biggest shareholder of the company, with 1.93 million shares valued at $142.7 million.
6. Shell plc (NYSE:SHEL)
Number of Hedge Fund Holders: 48
Dividend Yield as of February 17: 4.27%
P/E Ratio: 13.31
Shell plc (NYSE:SHEL), a British multinational energy giant, ranks 6th on our list of the best dividend stocks. The company expects global demand for liquefied natural gas to rise significantly in the coming years, while natural gas will see slower growth and oil demand could peak by 2030. Shell outlined three possible futures – Surge, where AI-driven productivity fuels higher energy demand, pushing LNG supply beyond 700 MTPA after 2040; Archipelagos, where countries prioritize their own interests over global cooperation on AI and renewable energy; and Horizon, where the world reaches net-zero emissions by 2050, keeping global warming below 1.5°C. In this last scenario, LNG demand peaks in the early 2030s, and natural gas declines soon after. Shell plc (NYSE:SHEL) also points to the rise of electric vehicles as a major reason oil demand may peak by 2030.
In Q4 2024, Shell announced a 4% higher dividend alongside a $3.5 billion share repurchase plan, continuing its streak of at least $3 billion in buybacks for the 13th consecutive quarter. On January 30, the company declared a quarterly dividend of $0.716 per ADS, an increase from the previous $0.688. The dividend will be paid on March 24 to shareholders on record as of February 14.
According to Insider Monkey’s Q3 data, Shell plc (NYSE:SHEL) was held by 48 hedge fund portfolios, compared to 49 in the earlier quarter. Ken Fisher’s Fisher Asset Management was the largest stakeholder in the company, with 24.5 million shares worth $1.6 billion.
5. TotalEnergies SE (NYSE:TTE)
Number of Hedge Fund Holders: 17
Dividend Yield as of February 17: 5.72%
P/E Ratio: 9.13
TotalEnergies SE (NYSE:TTE) is a global energy company that specializes in oil and natural gas exploration and production, liquefied natural gas, power generation, storage, and distribution, refining petrochemicals and specialty chemicals, and distributing petroleum products. On February 12, the company and Gujarat State Petroleum Corporation (GSPC) signed a 10-year agreement during India Energy Week in New Delhi. Starting in 2026, TotalEnergies will supply GSPC with 400,000 tons of LNG annually. The LNG will serve industrial customers, households, businesses, and CNG vehicles like auto-rickshaws.
In 2024, TotalEnergies SE (NYSE:TTE) made solid progress in growing its free cash flow across both oil & gas and integrated power. It kicked off production at five major projects, including Mero 2 and 3 in Brazil, Akpo West in Nigeria, Anchor in the US, and Fenix in Argentina. At the same time, it launched new oil projects in Suriname, Brazil, and Angola while pushing forward on oil development in Namibia. On the LNG and gas front, the company secured mid-term contracts with Azerbaijan for over 6 million tons per year and expanded its US gas business by acquiring dry gas assets in Texas.
Even with a weaker pricing environment compared to 2023, TTE pulled in $29.9 billion in funds from operations. To keep rewarding shareholders, the company paid out $7.4 billion in dividends and executed an $8 billion stock buyback in 2024, repurchasing $2 billion worth of shares each quarter. It is one of the best dividend stocks to watch.
Among the hedge funds tracked by Insider Monkey, 17 funds were long TotalEnergies SE (NYSE:TTE), compared to 18 funds in the last quarter. Arrowstreet Capital is a prominent stakeholder in the company, with 488,904 shares valued at over $35 million.
4. Verizon Communications Inc. (NYSE:VZ)
Number of Hedge Fund Holders: 57
Dividend Yield as of February 17: 6.61%
P/E Ratio: 9.91
Verizon Communications Inc. (NYSE:VZ) is a New York-based provider of communications, technology, and entertainment services. On January 27, Bernstein maintained a Market Perform rating on the stock and trimmed the price target from $48 to $46. Bernstein commented that VZ concluded 2024 with solid postpaid and FWA net additions, fueled by a solid fourth quarter, and the management anticipates an even stronger 2025.
Verizon Communications Inc. (NYSE:VZ) had a strong financial year in 2024, exceeding its targets with a 3.1% growth in wireless service revenue and a 2.1% increase in adjusted EBITDA. The company generated an impressive free cash flow of $19.8 billion in 2024, allowing it to reduce debt and prepare for its upcoming acquisition of Frontier. The fourth quarter also saw $2 billion in cash flow from the Vertical Bridge tower deal, and Verizon paid $600 million in severance payments as part of a voluntary separation program. In addition, the company raised its dividend for the 18th year in a row, with a quarterly payout of $0.6775 per share in February 2025. It is one of the best dividend stocks to buy.
Among the hedge funds tracked by Insider Monkey, Verizon Communications Inc. (NYSE:VZ) was owned by 57 funds in Q3 2024, compared to 67 in the last quarter. Rajiv Jain’s GQG Partners was the biggest stakeholder of the company, with 24.7 million shares worth $1.1 billion.
3. Rio Tinto Group (NYSE:RIO)
Number of Hedge Fund Holders: 30
Dividend Yield as of February 17: 6.87%
P/E Ratio: 9.62
Rio Tinto Group (NYSE:RIO) is a British mining company that operates through four segments – Iron Ore, Aluminum, Copper, and Minerals. The company has cleared all regulatory hurdles for its $6.7 billion acquisition of Arcadium Lithium, with the deal set to close on March 6. This move strengthens Rio’s position in the lithium sector, aligning with its energy transition strategy. Arcadium brings a diverse range of lithium assets and global operations, with plans to more than double its production capacity by 2028. Rio Tinto Group (NYSE:RIO) is one of the best dividend stocks to invest in.
In 2024, Rio Tinto Group (NYSE:RIO) saw a marginal increase in production, up 1%, with sales volumes rising by 3%. During the December Investor Seminar, the company laid out its vision for steady growth, aiming for around 3% annual production increases over the next ten years, driven by significant projects like Oyu Tolgoi, Simandou, and Rio’s expanding lithium portfolio. The company last issued a semi-annual dividend of $1.77 per share on September 26, 2024.
According to Insider Monkey’s Q3 database, 30 hedge funds reported owning stakes in Rio Tinto Group (NYSE:RIO), compared to 29 funds in the earlier quarter. Ken Fisher’s Fisher Asset Management was the biggest stakeholder in Rio, with 17.5 million shares valued at $1.2 billion.
2. Altria Group, Inc. (NYSE:MO)
Number of Hedge Fund Holders: 32
Dividend Yield as of February 17: 7.66%
P/E Ratio: 8.20
Altria Group, Inc. (NYSE:MO), an American tobacco giant, ranks 2nd on our list of the best dividend stocks, with a dividend yield of 7.66% as of February 17. American bank holding company, Truist Financial Corp, raised its stake in Altria Group, Inc. (NYSE:MO) by 27.6% in the fourth quarter of 2024, purchasing an extra 523,146 shares. This brings their total holdings to 2,418,074 shares, which are now worth about $126.4 million, according to the latest SEC filing.
In 2024, Altria Group, Inc. (NYSE:MO) returned over $10.2 billion to shareholders through dividends and share buybacks. The company paid out $6.8 billion in dividends, and in August, the board increased the dividend by 4.1%, marking the 59th increase in the last 55 years. MO also completed its share repurchase program, buying back 73.5 million shares for $3.4 billion, which was the biggest repurchase in over 20 years. These buybacks were funded by proceeds from selling part of its investment in Anheuser-Busch InBev.
According to Insider Monkey’s third-quarter database, 32 hedge funds were long Altria Group, Inc. (NYSE:MO), compared to 36 funds in the second quarter. Arrowstreet Capital was the biggest position holder in the company, with 22.2 million shares valued at $1.13 billion.
1. Ford Motor Company (NYSE:F)
Number of Hedge Fund Holders: 36
Dividend Yield as of February 17: 7.91%
P/E Ratio: 6.40
American automobile manufacturer, Ford Motor Company (NYSE:F), ranks 1st on our list of the best dividend stocks. Ford’s stock recently took a hit after the company warned that profits could drop by $2 billion or more in 2025. It expects earnings before interest and taxes to fall to $7–$8.5 billion, down from $10.2 billion in 2024, due to lower vehicle prices and the expensive launch of new Lincoln Navigator and Ford Expedition SUVs. Incoming CFO Sherry House blamed a 2% industrywide price drop, while CEO Jim Farley is scaling back Ford’s EV push after overestimating demand and working to cut costly warranty repairs. Adding to the pressure, potential new tariffs under President Trump could further impact the company’s bottom line.
Ford Motor Company (NYSE:F) hit a record $185 billion in revenue, marking its fourth consecutive year of growth, driven by its strong pickup truck dominance. The company generated $6.7 billion in adjusted free cash flow with a 65% cash conversion rate, exceeding its target. With a strong balance sheet holding $28 billion in cash and $47 billion in liquidity, Ford has returned over $10 billion to shareholders in the past three years. The company also announced a first-quarter dividend of $0.15 per share, plus a $0.15 supplemental dividend, payable on March 3 to shareholders on record as of February 18.
Among the hedge funds tracked by Insider Monkey, 36 funds held stakes in Ford Motor Company (NYSE:F), compared to 47 funds in the previous quarter. Jim Simons’ Renaissance Technologies was one of the leading shareholders of the company, with a position worth nearly $115 million.
Overall, Ford Motor Company (NYSE:F) ranks first on our list of the best cheap high dividend stocks. While we acknowledge the potential of F to grow, our conviction lies in the belief that certain 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 F 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 Complete List of 59 AI Companies Under $2 Billion in Market Cap.
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