5 Rock-Solid Dividend Stocks Under $50 With Room to Run

Choosing dividend stocks is not only about looking at the yield but also ensuring that the company pays regular dividends, has a high dividend growth ratio and the payment is sustainable based on the fundamentals. Like any investment, you need to make sure you’re getting the maximum value for your money.  If you’re looking for […] The post 5 Rock-Solid Dividend Stocks Under $50 With Room to Run appeared first on 24/7 Wall St..

May 29, 2025 - 13:58
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5 Rock-Solid Dividend Stocks Under $50 With Room to Run

Key Points

  • Looking for high-yield dividend stocks below $50? Here are the top five.

  • These stocks have raised dividends for years and have the potential to move higher in the coming months.

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Choosing dividend stocks is not only about looking at the yield but also ensuring that the company pays regular dividends, has a high dividend growth ratio and the payment is sustainable based on the fundamentals. Like any investment, you need to make sure you’re getting the maximum value for your money. 

If you’re looking for stocks under $50, I’ve identified 5 rock-solid dividend stocks with room to run and the potential to raise dividends in the coming years. These stocks hold a strong position in the industry, have proved their worth, and have the ability to navigate through tough times. 

Pfizer

I have invested in Pfizer Inc. (NYSE: PFE) before the pandemic happened and changed the fate of the company. The multi-billion dollar biopharma company reported impressive revenue numbers in 2021, driven by the COVID-19 vaccine sales but it is time investors looked beyond the vaccine. When it comes to the pharmaceutical sector, you need to look at the future. Pfizer has 10 drugs which add $1 billion to its top line. Additionally, it has 115 candidates in the pipeline, of which, 32 drugs are in Phase 3 trials. 

The company reported a revenue of $13.7 billion in the first quarter. It has a pipeline of oncology drugs for the coming years and enough liquidity to keep investing in the business. Pfizer has also set up a multi-year cost savings program to deliver $7.7 billion in savings by 2027. The company’s dividend payout ratio is 61%. Pfizer has an impressive dividend yield of 7.38% and the company has increased dividends for 16 consecutive years. 

An ideal dividend stock to buy below $50, Pfizer is exchanging hands for $23. It is down 12.36% year-to-date and 17.6% in 12 months. A major cause behind the stock downturn is the dip in revenue year-over-year. The company has gone from reporting a revenue of $100 million to $60 million in 2024. This has left investors unhappy and it has caused the stock to dip. However, the dividends have remained steady. 

Pfizer has the potential to bounce back but patience is necessary. The stock is worth adding to your portfolio if you’re here for steady income.

Equipment and infrastructure of the drilling rig for drilling oil and gas wells in the field of the Northern region. In the background, the colorful sky at the beginning of the polar day

Brookfield Infrastructure Partners L.P

Brookfield Infrastructure Partners L.P. (NYSE:BIP) is a highly diversified company that owns a large portfolio of assets across different sectors. These include transportation, utilities, data infrastructure, and energy. The company owns assets in America, Europe, and Asia. This is the ultimate diversification you need for your portfolio. Brookfield’s presence across different countries and sectors can rival some of the biggest mutual funds and ETFs. 

Brookfield Infrastructure is known as one of the best dividend stocks today. It has a dividend yield of 5.28% and the shares are currently trading for $32. The stock is up 2.23% year-to-date and 9.33% in 12 months. Since it became public, Brookfield Infrastructure has delivered a 13% annualized total return. 

The company’s infrastructure business has managed to deliver solid growth in the past. It has seen a 15% compound annual rate rise in the FFO and has benefitted from the inflation-driven rate increases. The company is known for making excellent acquisitions which help see a rise in FFO and thus, dividends. 

The five-year dividend growth rate is 5.83% and has increased dividends for 16 years. It has a 10-year dividend growth rate of 7.53% while the cash dividend payout ratio is 179.55%, significantly higher than the sector median of 71%. 

AT&T

One of the biggest telecom businesses in the U.S., AT&T Inc. (NYSE: T) holds a strong position in the industry and has become a compelling investment. The majority of its revenue is generated from the mobility business in the U.S. and the remaining comes from wireline enterprises. The company is a mature business that has achieved success after the spinoff. It is steadily working on reducing debt and has gone from $195.8 billion in 2021 to $140.92 billion in 2024.

The company went from reporting losses in 2022 to a profit in 2025, demonstrating its strength and ability to navigate tough times. In the recent quarter, it reported 261,000 net additions to its fiber business and 324,000 postpaid phone net additions. The revenue was up 2% to $30.6 billion while the EPS came in at $0.61. AT&T is aiming for a free cash flow of $16 billion this year. 

Trading at $27.42, T stock is up 20% year-to-date and 58% in 12 months. Trading under $50, this stock has an attractive dividend yield of 4.05%. AT&T had an impressive record of dividend increases until 2022 when it spun off the WarnerMedia business and had to cut the dividend in half. However, the company has paid a quarterly dividend of $0.2775 per share since then. 

While AT&T will take time to grow on the top line, its dividends remain sustainable. 

Verizon store

Verizon communications

AT&T and Verizon Communications Inc. (NYSE: VZ) are always compared with each other but as an investor, both the stocks are worth owning for high dividend yields. Verizon’s wireless communication business ensures recurring revenue from both individual and corporate customers. The company is growing its fibrotic network and ended the first quarter of the year with more than 12.6 million broadband connections, up 13.7% year over year.

It generated a revenue of $25.6 billion in the quarter and reported 109,000 fixed wireless net additions. It lost about 289,000 subscribers in the postpaid phone segment and gained 339,000 subscribers in the broadband segment. The company has had an excellent 2025 and I believe the momentum will continue. It is aiming for a cash flow between $17.5 billion-$18.5 billion this year. 

The company agreed to buy Frontier Communications in a $20 billion deal and this will help strengthen its position in the telecommunications industry. It is expected that the deal will add 10 million broadband connections by next year when it is expected to close. 

Verizon has a dividend yield of 6.26% and it has increased dividends for 21 consecutive years. The stock is exchanging hands for $43.32 and is up 7.73% year-to-date. It has seen a 10% rise in 12 months and is moving close to the 52-week high of $47. The company has a dividend payout ratio of 54.5% and it recently announced a quarterly dividend of $0.67 per share. 

VZ stock has a lot of room to run and is one of the best telecommunication stocks in the U.S. today. 

The collection of white skincare products on a tray for beauty and self-care routines.

Kenvue Inc. 

Kenvue (NYSE:KVUE) is the consumer products spinoff from Johnson & Johnson (NYSE: JNJ) and it operates in skin health, beauty, and essential health. The company has some iconic brands including Neutrogena, Benadryl, and Tylenol. If you are looking for a consumer staples stock with a steady dividend, Kenvue is a great choice.

Exchanging hands for $23, the stock is up 11.51% year-to-date and 23.27% in 12 months. No matter the economic conditions, consumers are always going to seek out consumer staples. Tariffs will have a temporary impact on the business, but the company is well-positioned to manage these challenges. Investors need to remember that the company is still handling the baggage of the separation from JNJ. The near-term outlook might be weak but Kenvue has the potential to move higher.

It is looking for cost-effective ways to handle business operations and has laid out a Vue Forward plan. The management aims to achieve $350 million in savings by 2026 and the current progress on Vue Forward has allowed the company to increase brand investments. In 2025, it expects to see 2% to 4% organic sales growth but is aiming for higher growth in the second half of the year. 

Since the spinoff, Kenvue’s results haven’t been impressive but it has a high yield and reasonable valuation. Kevnue benefits from the legacy of Johnson & Johnson and has a dividend yield of 3.46%. A solid brand portfolio and the potential to return to growth make Kenvue an excellent pick for patient investors.

The post 5 Rock-Solid Dividend Stocks Under $50 With Room to Run appeared first on 24/7 Wall St..