4 Cheap Dividend Stocks Under $50 That Keep Raising Payouts

Dividend stocks can set you up for life. But, making the right choice will determine whether you enjoy a steady income or receive the same dividend amount year after year. Passive income investors must always look out for dividend growth. This will show the percentage by which your income will increase each year. Companies could be paying dividends for years, but it is time to move on if you do not see growth. I’ve picked 4 dividend stocks under $50 that keep raising payouts. Let’s take a look at them. 

Pfizer

Many recognise the pharmaceutical company Pfizer Inc. (NYSE: PFE) only for its COVID vaccine but investors need to look at the bigger picture. With an attractive dividend yield of 7.03%, Pfizer remains a hot dividend stock. The company has increased dividends for 16 consecutive years. It generated $9.8 billion in cash flow in 2024 and paid $9.5 billion in dividends. 

The company has seen revenue declines over the past two years and is unlikely to avoid them in the next few. However, the management has laid out a multi-year cost savings plan to generate higher profits. Pfizer has an impressive oncology drug pipeline that will generate steady revenue in the coming years. 30 drugs are already in phase 3, which means the long-term picture is attractive. It is aiming for cost savings of $7.2 billion by 2027. 

For 2024, the company’s top line came in at $63.6 billion, up 7% year over year and the revenue jumped 12% year over year. Pfizer trades at a low valuation multiple, making it a hot stock to own. Exchanging hands for $24, it is down 8% in 2025 and has a P/E ratio of 17.72. The company pays out most of its earnings in the form of dividends and has a payout ratio of over 100%. 

Pfizer has a terrific dividend yield and as the revenue improves, we could see Pfizer rewarding investors with a higher dividend. 

Enterprise Products Partners 

The energy sector is gaining traction and the one stock to own is Enterprise Products Partners (NYSE:EPD). Boasting an attractive dividend yield of 6.86%, EPD stock is exchanging hands for $32 and has jumped 13% in 12 months. It has a dividend payout ratio of around 50% which allows it to reinvest in the business while rewarding investors. 

The North American company has increased dividends for 26 consecutive years and it has the ability to sustain them. The company holds a solid balance sheet, building a strong foundation for the dividends. Enterprise Products Partners is a cash flow machine and produced $2.1 billion in cash flow in the first quarter.

The company owns pipelines and the majority of its contracts are long-term and government-regulated. This ensures steady income even if the customers do not use the pipeline. Enterprise Products Partners has financial flexibility and it takes every opportunity to invest in business growth. It has $6 billion worth of organic growth projects set to start generating cash flow this year. 

The company is working on the expansion of its gas processing unit in the Permian Basin and has started work on the second phase of the Neches River Terminal. Predictable income and significant assets make Enterprise Products Partners a reliable dividend stock. Ideal for income investors, the stock could produce attractive returns in the long run. 

Kinder Morgan 

Another energy stock, Kinder Morgan (NYSE: KMI) is an energy infrastructure company in North America and it owns and controls gas pipelines and terminals. The company has more than 80,000 miles of pipelines and operates natural gas processing plants, renewable natural gas production facilities, and storage terminals. It crushed the S&P 500 in 2024 but has remained flat this year. 

The company generates close to 90% of its revenue from predictable sources which shields the business from the commodity price volatility. Kinder Morgan is set for growth over the next five years and this means higher dividends for investors. It ended the recent quarter with $8.8 billion projects in the backlog. Kinder Morgan recently closed the acquisition of Outrigger Energy, a gas gathering and processing system for $640 million. 

It also has several natural gas pipeline expansion projects that are expected to be completed by 2029. These new projects will boost revenue and profits. Kinder Morgan has the financial flexibility to invest in the business and meet the growing demand for natural gas. The management expects earnings to continue growing higher in 2025 which could boost dividends. 

Exchanging hands for $27, the stock is up 38% in 12 months and over 75% in five years. It has an impressive dividend yield of 4.25% and it is the perfect stock for income investors. UBS has a buy rating for the stock with a price target of $38. 

British American Tobacco

Consumer staples are one segment that is often favored in an uncertain market environment. While people may cut spending in other areas, they usually spend on low-cost consumer staples. Up 33% so far, British American Tobacco (NYSE:BTI) has been on a rally. The stock soared 59% in 12 months and 29% in six months.

It has an attractive dividend yield of 7.79% and has been paying dividends for over three decades. Investors expect the company to return about 10% in the long term and it has a dividend payout ratio of 55%. British American Tobacco has a record of 25 consecutive years of dividend increases. 

The consumer staples company can help ride out the market volatility. Its main product is cigarettes but it is also working to expand the non-cigarette portfolio. Since smoking cigarettes is falling out of favor, the company is investing in noncigarette products and has seen growing demand for products like oral nicotine pouches and Vuse e-cigarettes.

British American Tobacco enjoys a pricing power and has increased prices in the past to offset volume dips. It operates in over 100 countries and the management expects to see profitable growth in the mid-single digit by 2026. The company is in a strong position to deliver steady returns in the coming years. 

The post 4 Cheap Dividend Stocks Under $50 That Keep Raising Payouts appeared first on 24/7 Wall St..