10 Best Cheap Dividend Stocks for 2022

10 Best Cheap Dividend Stocks for 2022

dima_sidelnikov / iStock.com All good equity investments can make their owners money by appreciating in value over time, but in order to enjoy the profits, you have to sell off some of your position. That’s not the case with dividend stocks , which make regular payments to their shareholders that they can use as income or reinvest right back into their portfolios without selling a single share.

The companies that issue dividends tend to be large, stable and well established. Typically, they’re able to issue dividends because they’re so secure and well-heeled that they can fund their operations, growth and expansion and still have money left over to return to their shareholders.

Another good thing about this investment class is that the adage of getting what you pay for doesn’t always apply — many of the best dividend stocks also happen to be cheap dividend stocks.

Keep reading to learn about some of the most affordable income-generating equity investments — aka cheap dividend stocks — that you can find on the market today. What Are the Best Dividend Stocks To Buy Right Now?

As you’re about to learn, the best dividend stocks are not always the ones that pay the highest dividends. The best dividend stocks are the ones issued by companies that are stable, well-managed and operating healthy balance sheets .

In that respect, dividend investing is no different than any other kind of equity investing. The goal is to target companies that are in good shape, that provide value-adding products or services and that are run with long-term growth and stability in mind. What are the Cheapest Stocks That Pay Dividends?

The following is a look at 10 stocks that deliver outsized payments to their shareholders despite their low prices.

Even the most expensive stock on the list currently trades at less than $36 per share, but most are priced in the single digits. The lowest dividend yield is 2.62% — still much better than the S&P 500 average of 1.69% — but most are much higher, with three reaching into the double-digits. 1. Annaly Capital Management Inc. (NLY)

Stock price: $6.45

Dividend yield: 13.64%

Annaly Capital Management operates through several investment groups to finance and invest in both residential and commercial projects. It also invests in agency mortgage-backed securities. 2. UWM Holdings Corp. (UWMC)

Stock price: $3.62

Dividend yield: 11.05%

United Wholesale Mortgage has been the biggest wholesale mortgage lender in America by origination for seven consecutive years. 3. Hanesbrands (HBI)

Stock price: $8.71

Dividend yield: 6.89%

One of the most familiar consumer goods companies in the world, Hanesbrands operates through three segments: innerwear, activewear and international. 4. Prospect Capital Corp. (PSEC)

Stock price: $7.48

Dividend yield: 9.63% Business development company Prospect Capital Corp. invests in Canadian and American middle-market companies, mostly in the fields of media, health care , food, financial services, business services, energy, industrials and manufacturing. 5. Enterprise Products Partners (EPD) Stock price: $26.32 Dividend yield: 7.22% Enterprise Products Partners is a holding company that deals in the trade and production of natural gas and petrochemicals. 6. Chimera Investment Corp. (CIM) Stock price: $8.50 Dividend yield: 15.53% A real estate investment trust , Chimera invests in mortgage assets both directly and through a network of subsidiaries. Its portfolio includes residential and commercial mortgage loans, mortgage-backed securities and other real estate assets. 7. Equitrans Midstream Corp. (ETRN) Stock price: $9.27 Dividend yield: 6.47% One of the largest natural gas gathering companies in America, Equitrans Midstream Corp has a major presence in the Appalachian Basin. Its three primary segments are gathering, transmission and water . 8. Yamana Gold Inc. (AUY) Stock price: $4.41 Dividend yield: 2.72% Yamana deals in mining, exploration, extraction, reclamation, processing and related activities for gold and other precious metals . 9. Walgreens Boots Alliance Inc. (WBA) Stock price: $35.06 Dividend yield: 5.48% Founded in 1901, Walgreens Boots Alliance operates health, beauty and pharmacy retail chains around the world. In the U.S., its drug stores operate under the names Walgreens and Duane Reade. 10. AT&T (T) Stock price: $17.54 Dividend yield: 6.33% Telecom , media and tech giant AT&T operates through four segments: Communications, WarnerMedia, Latin America and Xandr. Can You Get Rich Off Dividends? You’re more likely to get rich by investing in growth stocks , which have the potential for rapid and dramatic appreciation, than by pursuing the highest dividends possible.Big tech companies , for example, typically don’t pay dividends because they reinvest all available cash back into the company to grow as fast as […]

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