5 Cheap Dividend Stocks to Buy Before They Bounce Back

Stocks to buy

Looking for investment opportunities in dividend stocks? Look no further! Discover the potential of cheap dividend stocks, undervalued dividend stocks, and high-yield cheap stocks that are worth considering. These stocks offer the enticing prospect of regular quarterly dividend payments. Such payments can be a reliable source of income for investors, even during market downturns.

While the stock market may experience volatility, it’s important to note that as a stock’s price decreases, its dividend yield tends to rise, presenting an attractive opportunity for investors. However, caution is necessary when dealing with dividend stocks priced under $20. Companies facing challenging times often resort to cutting their dividend payments as a precautionary measure, in a bid to bolster their balance sheets and hunker down for tough times.

To make informed investment decisions, it’s also crucial to scrutinize a company’s business fundamentals before buying cheap dividend stocks. This includes evaluating a company’s financial health, growth potential, and overall stability. By conducting thorough research, investors can identify which dividend stocks have the potential to provide both high yields and long-term value.

Remember, finding the right dividend stocks to buy requires careful analysis. So, be sure to do your own homework on the stocks below, before making any investment decisions.

Gap (GPS)

GPS stock: a close up of a Gap logo on a building

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Gap (NYSE:GPS), a casual apparel and accessories retailer renowned for brands like Old Navy, Gap, and Banana Republic, has faced fierce competition from online sellers. Despite inconsistent results, Gap maintains decent liquidity and boasts a solid business, particularly with its Old Navy brand. The company aims to achieve $10 billion in annual revenue from its Old Navy division alone by the end of the decade.

When it comes to cheap dividend stocks, Gap deserves consideration. Despite challenges posed by online retailers, Gap’s diversified brand portfolio and strong market presence make it an appealing investment. With reasonable liquidity and potential for growth, Gap is well-positioned to capitalize on the popularity of its banners like Old Navy and generate significant revenue growth over time.

Investing in undervalued dividend stocks can yield lucrative returns, and Gap fits the bill with a 6.8% dividend yield. The company’s solid business model and a fair value estimate of $11.06 indicate promising prospects for investors. By taking advantage of the current stock price, investors can seize the opportunity to benefit from Gap’s growth potential and attractive dividends.

In conclusion, despite the competitive retail landscape, Gap remains an enticing investment option. With its diverse brand portfolio and the attainable goal of $10 billion in annual Old Navy revenue, Gap stands out as a favorable choice for those seeking cheap dividend stocks.

Sirius XM Holdings (SIRI)

The Sirius XM (SIRI) mobile app logo on a smartphone screen.

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Sirius XM Holdings (NASDAQ:SIRI), a prominent company in the field of satellite and internet radio services, primarily focuses on serving the automotive industry. The company’s Pandora division has shown solid advertising revenue trends and continues to benefit from the growing popularity of podcasts. Notably, a majority of new subscribers come from new-car buyers who convert their free trials to paid subscriptions. Over the next five years, Sirius XM is expected to expand its satellite service gradually.

Investing in undervalued dividend stocks can provide attractive returns, and Sirius XM offers potential in this regard. The company is well-positioned for growth as a prominent player in satellite and internet radio services. Despite its current share price of $4.45 per share, investors can capitalize on Sirius XM’s expanding subscriber base and benefit from high-yield returns.

If you’re seeking high-yield cheap stocks, consider the prospects of Sirius XM. The company offers an enticing investment opportunity with its strong market presence and positive outlook. By investing in dividend stocks like SIRI, investors can gain exposure to the company’s continued success and potential for future growth.

In conclusion, Sirius XM Holdings, a prominent provider of satellite and internet radio services, shows potential as an investment opportunity. Despite its current price, Sirius XM’s growth potential and high yield make it an appealing investment opportunity.

Banco Bradesco SA (BBD)

bank stocks

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Banco Bradesco SA (NYSE:BBD), one of the largest banks in Brazil, demonstrated “significant improvement” in its financial performance during the first quarter.

Although recurring net income declined by 37.3% compared to the previous year, the company witnessed an impressive 168% increase on a quarterly basis. Additionally, despite challenging economic conditions in Brazil, Bradesco’s stock is believed to be undervalued. Encouragingly, the Brazilian central bank’s efforts to combat high inflation should positively impact Bradesco’s credit quality.

Banco Bradesco is worth considering if you’re searching for undervalued dividend stocks. The bank’s noteworthy recovery from its fourth-quarter performance highlights its promising outlook. Despite closing at $3.47 on July 3, investing in high-yield cheap stocks like BBD can offer lucrative returns.

Investing in dividend stocks can yield rewarding results, and Banco Bradesco presents an attractive opportunity in this regard. The bank’s status as one of Brazil’s largest financial institutions and improving financial performance positions it for growth. The company’s positive rating and fair value estimate further underscore the attractiveness of BBD stock. Despite its current price, investors can benefit from Banco Bradesco’s potential for long-term profitability and high dividend yield.

Banco Bradesco exhibits significant potential as an investment option. The bank’s improved first-quarter performance validates its appeal among cheap high-yield stocks.

Ford Motor Company (F)

Ford logo badge on grill of car

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Undervalued and often overlooked, Ford Motor Company (NYSE:F) stands out in the realm of cheap dividend stocks. Despite temporarily suspending its dividend in 2020, the U.S. auto giant made a remarkable comeback by reinstating it in late-2021.

Despite skeptics expressing concerns about Ford’s substantial $50 billion investment in vehicle electrification technology by 2026, the company has made significant operational progress and turned a corner.

A driving force behind Ford’s positive outlook lies in its ongoing restructuring plan, which aims to streamline operations and bolster productivity. This initiative not only reduces operating costs but also instills confidence in investors who seek dividends. Patient shareholders are rewarded with a solid dividend payment, making Ford an enticing option for those looking to invest in high-yield cheap stocks.

Ford’s stock is attractively valued, making it an attractive opportunity for investors. With the potential for reduced costs and improved productivity, Ford Motor offers a promising future for those interested in investing in dividend stocks.

The company’s strong dedication to vehicle electrification technology solidifies its position as an industry leader.

In conclusion, Ford Motor, with its reinstated dividend, undervalued status, and dedication to electrification technology, deserves serious consideration from those interested in dividend stocks. Investors can look forward to favorable returns and a thriving dividend program as the company’s restructuring plan unfolds. Ford Motor embodies the perfect blend of affordability, potential, and rewarding opportunities.

Host Hotels & Resorts (HST)

an empty, sunlit hotel room

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Host Hotels & Resorts (NASDAQ:HST), a renowned REIT, owns a collection of opulent hotels across the Americas. In 2023, travel demand is rebounding from the pandemic, though a full recovery to 2019 levels is unlikely. Luckily, Host’s prized properties are better-positioned than most to withstand a potential economic downturn.

Host Hotel’s portfolio consists mainly of luxury hotels located in the most profitable markets in the United States, particularly in the Sunbelt region. These properties are strategically in areas with high demand, such as central business districts of major cities, proximity to airports, and popular resort or conference destinations. As the hotel industry continues to recover, Host Hotel is expected to reap the rewards of the current surge in demand.

Considering the current investment landscape, dividend stocks hold significant appeal. And among them, Host Hotels & Resorts shines as a compelling option. Not only does it offer the potential for attractive returns, but it also boasts a strong dividend yield. Host Hotels & Resorts should definitely be on your radar as an investor seeking cheap dividend stocks.

With an undervalued status and high yield, Host Hotels & Resorts stands out from the pack. Savvy investors looking to invest in dividend stocks can seize the opportunity to acquire shares in this promising company.

The firm’s portfolio of luxury hotels positions it as a lucrative prospect. Additionally, its positive revenue growth projections make it an attractive option for those aiming to make smart investment choices.

On the publication date, Faizan Farooque did not hold (directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Faizan Farooque is a contributing author for InvestorPlace.com and numerous other financial sites. Faizan has several years of experience in analyzing the stock market and was a former data journalist at S&P Global Market Intelligence. His passion is to help the average investor make more informed decisions regarding their portfolio.

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