3 Low-Priced Dividend Stocks Paying Over 5% Right Now

Dividend stocks are a smart way to navigate an uncertain market. Besides generating steady passive income, dividend-paying companies are also reliable and have a stable balance sheet that sustains the dividends. The best way to make the most of dividend stocks is to hold them for the long term. 

With thousands of dividend-paying companies, it can become difficult to choose the right stocks. However, if you’re looking to beat the S&P 500 and own dividend stocks that can generate steady income, here are three low-priced stocks with a dividend yield of over 5%. 

Pfizer

The years after the pandemic haven’t been kind to Pfizer Inc. (NYSE: PFE). Revenue and earnings have dropped and Pfizer has had to take several decisions to turn things around. The pharmaceutical company reported record revenue numbers during the pandemic and set investor hopes high but it soon saw a sharp dip in revenue as the pandemic started receding. 

However, when looked at independently, the numbers aren’t bad. The company reported a revenue of $63.6 million in 2024, up 7% year-over-year. Pfizer continues to generate a significant amount of revenue from Covid vaccine sales but also has a strong oncology drug pipeline. 

The company is expanding its portfolio of oncology drugs and has a massive pipeline that can continue generating revenue. It already has 108 candidates in the pipeline with 30 in their Phase 3 trials. Pfizer is also working on cost reduction measures and aims to deliver $7.7 in savings by 2027. 

Pfizer is a hot dividend stock with a yield of 7.32% and is exchanging hands for $23.49, down 11.7% year-to-date. While the stock has lost value over the years, the dividend continues to remain strong. It is time to look at the bigger picture and allow Pfizer to move beyond the pandemic surge. With a solid drug pipeline, we could see Pfizer report impressive fundamentals in the coming years. Now is the time to load up on this low-priced dividend stock.

Verizon Communications

Telecom giant Verizon Communications (NYSE:VZ) is another dividend stock worth adding to your portfolio. The stock has a yield of 6.16% and is exchanging hands for $41.96. It is up 9.33% year-to-date and 7.2% in 12 months. Verizon is investing heavily in building its fiber and 5G network to attract a larger subscriber base. This investment is paying off. Verizon reported 12.6 million broadband connections at the end of the first quarter, up 13.7% year-over-year. 

The company saw impressive growth in free cash flow which reached $3.6 billion in the first quarter, up from $2.7 billion in the same quarter the previous year. 

Verizon expects to see steady growth this year and has bought Frontier Communications for $20 billion which is expected to add 10 million subscribers by 2026. The management is aiming for a cash flow in the range of $17.5 billion-$18.5 billion in 2025 and this will help sustain the attractive dividend yield. 

Verizon is trading at a discount and this is what makes it an ideal buy. It has a P/E ratio of 10.45, much lower than the industry median of 18. The stock is undervalued and as the company achieves growth, you can lock in the dividend while making the most of the potential upside. Moreover, the company has increased dividends for 18 consecutive years. 

Enbridge 

The energy sector has attracted several investors lately. North American company Enbridge (NYSE:ENB) operates oil and natural gas pipelines and owns North America’s largest gas utility. The stock has a dividend yield of 5.81%, much higher than the average yield of the S&P 500’s 1.5%. It has increased dividends for 30 consecutive years, making it an ideal choice for passive income investors. 

The company has a highly diversified portfolio which allows it to tackle the market price volatility. It has moved towards renewables and natural gas, which offers high long-term growth potential. Exchanging hands for $46.48, ENB stock is up 27% in 12 months and 8.14% year-to-date. 

In the first quarter results, the company beat estimates and reported a revenue of $12.9 billion, up from $8.2 billion in the same quarter previous year. The management expects to achieve an EBITDA annual growth rate in the range of 7% to 9% through 2026, and then of 5% annually. 

Since the company operates an extensive pipeline network, a large part of its earnings come from predictable assets. This ensures steady cash flow and allows the company to sustain dividends. Enbridge is in a strong position to benefit from the increasing global energy demands. 

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