5 Cheap DRIP Stocks To Buy Now

4. Pfizer Inc. (NYSE:PFE)

P/E Ratio as of January 25: 8.57
Share Price as of January 25: $43.80

An American multinational biotech company, Pfizer Inc. (NYSE:PFE) is another cheap DRIP stock on our list. The company’s reinvestment plan is available to stakeholders for either all or a portion of their company’s shares. With a share price of $43.8 and a P/E ratio of 8.57, the company is among the cheap DRIP stocks on our list.

Wells Fargo appreciated Pfizer Inc. (NYSE:PFE)’s data on the treatment of hemophilia B in December and raised its price target on the stock in December to $54, with an Overweight rating on the shares.

On December 9, Pfizer Inc. (NYSE:PFE) declared a quarterly dividend of $0.41 per share, raising it by 2.5%. This was the company’s 13th consecutive year of dividend growth. The stock’s dividend yield on January 25 came in at 3.74%.

The number of hedge funds tracked by Insider Monkey owning stakes in Pfizer Inc. (NYSE:PFE) stood at 77 in Q3 2022, compared with 70 in the previous quarter. The consolidated value of these stakes is over $2.4 billion.

AQR Capital Management was the company’s leading stakeholder in Q3.

Diamond Hill Capital mentioned Pfizer Inc. (NYSE:PFE) in its Q3 2022 investor letter. Here is what the firm has to say:

“Also among our bottom contributors were health care products manufacturer Abbott Labs, global pharmaceutical company Pfizer Inc. (NYSE:PFE), media and technology giant Alphabet, and insurance company American International Group (AIG). Although Pfizer continues to report strong performance of its core drugs, sales of its COVID vaccine and treatment have likely peaked and sales are expected to decline going forward. We remain optimistic about the company long term as we believe management is taking the company in the right direction, focusing R&D, and making strategic acquisitions with profits generated from COVID vaccine sales.”

3. Verizon Communications Inc. (NYSE:VZ)

P/E Ratio as of January 25: 7.92
Share Price as of January 25: $40.07

Verizon Communications Inc. (NYSE:VZ) is an American multinational telecommunications company, based in New York. Through the company’s DRIP program, shareholders’ dividends can be reinvested automatically or can be directly deposited into their savings or checking accounts on dividend payment dates.

As of January 25, Verizon Communications Inc. (NYSE:VZ) has a share price of $40.07 and a price-to-earnings ratio of 7.92, which makes it one of the cheap DRIP stocks on our list.

Verizon Communications Inc. (NYSE:VZ) currently offers a quarterly dividend of $0.6525 per share for a dividend yield of 6.51%, as recorded on January 25. The company’s dividend growth streak stands at 16 years.

Highlighting the company’s wireless business, Cowen maintained an Outperform rating on Verizon Communications Inc. (NYSE:VZ) in January with a $49 price target. However, the firm showed concerns regarding cost pressures and interest expenses.

At the end of Q3 2022, 62 hedge funds in Insider Monkey’s database owned stakes in Verizon Communications Inc. (NYSE:VZ), up from 58 in the previous quarter. The collective value of these stakes is over $1.42 billion.

Mawer Investment Management mentioned Verizon Communications Inc. (NYSE:VZ) in its Q3 2022 investor letter. Here is what the firm has to say:

“There are a few other segments of our portfolios that displayed weakness in the quarter. Cable and telecommunication companies have been an area that has lagged the broader market as their worlds are increasingly colliding. Companies such as Verizon (NYSE:VZ) has been impacted as wireless operator is spending heavily to attract internet subscribers with fixed wired access and the cable companies are trying to build wireless businesses.”

2. Citigroup Inc. (NYSE:C)

P/E Ratio as of January 25: 7.30
Share Price as of January 25: $51.69

Citigroup Inc. (NYSE:C) is an American multinational investment bank and financial services company, headquartered in New York. The company’s DRIP program allows shareholders to reinvest dividends or make optional cash payments.

On January 12, Citigroup Inc. (NYSE:C) declared a quarterly dividend of $0.51 per share, consistent with its previous dividend. The stock has a dividend yield of 3.95%, as of January 25.

In its recently announced Q4 earnings, Citigroup Inc. (NYSE:C) posted revenue of $18 billion, which showed a 5.8% growth from the same period last year. During the quarter, the company paid approximately $1 billion to shareholders, which takes its payout ratio to a healthy 44%.

At the end of Q3 2022, 85 hedge funds tracked by Insider Monkey reported owning stakes in Citigroup Inc. (NYSE:C), growing from 82 in the previous quarter. These stakes are worth over $7.1 billion collectively.

Diamond Hill Capital mentioned Citigroup Inc. (NYSE:C) in its Q1 2022 investor letter. Here is what the firm has to say:

“Shares of Citigroup declined in the quarter as investors became increasingly negative on capital markets activity. The company is also continuing to divest certain consumer banking geographies which may be dilutive to earnings in the near term.”

1. Marathon Oil Corporation (NYSE:MRO)

P/E Ratio as of January 25: 5.36
Share Price as of January 25: $28.39

Marathon Oil Corporation (NYSE:MRO) tops our list of cheap DRIP stocks to buy now. The stock is trading at $28.39 per share and has a P/E ratio of 5.36, as of January 25. The energy company raised its quarterly dividend by 11% to $0.10 per share on January 25 and has a dividend yield of 1.27%. This marked the company’s seventh consecutive year of dividend growth.

Wells Fargo called Marathon Oil Corporation (NYSE:MRO) a ‘top pick for the sector’ in its January investor note. The firm initiated its coverage of the stock with an Overweight rating and a $41 price target.

At the end of Q3 2022, 50 hedge funds tracked by Insider Monkey presented a bullish stance on Marathon Oil Corporation (NYSE:MRO), up from 41 funds in the previous quarter. The stakes owned by these hedge funds have a total value of over $1 billion.

Carillon Tower Advisers mentioned Marathon Oil Corporation (NYSE:MRO) in its Q1 2022 investor letter. Here is what the firm has to say:

“Stock selection contributed the most while sector allocation was also positive. An underweight to communication services and an overweight to energy helped performance, while an underweight to consumer staples and an overweight to materials detracted. Stock selection was strong within healthcare and materials but was weak within information technology and industrials. Marathon Oil (NYSE:MRO) increased its quarterly dividend and executed an impressive share buyback that blew by the target it originally announced.”