Introduction

Find out the best stocks under $50 for income investors in 2024. Discover the list of the best stocks such as Pfizer, Cisco, and AT&T that provide high dividend yield and sound financials.

Since the stock market can provide a broad range of opportunities, investors seeking a good balance of income and growth look for cheap stocks or those with a price below $50. While these stocks give steady dividend income, majority of them have resilient fundamentals that make them striking for generating long-term income. This article will not specific offer buy or sell recommendations, it will merely present a point of view on fair valuations, P/E ratio, dividend yield and other comparable factors that can help you with your investment decisions.

Why Dividend Stocks Under $50?

To the income-oriented investors, these stocks are attractive due to affordability factor and a reasonable dividend yield ranging between 2% and 4%. Also, these companies need to have a market capitalization of more than $10 billion, so they follow the basic sound business and financial models. Below are some of the stocks that may fit this description, accompanied by relevant metrics that help analyze its results. Interested in AI Penny Stocks? Find out Best AI Penny Stocks in 2024!

Best Stocks under $50

Companies and a Brief Analysis

Metric	Pfizer (PFE)	Cisco (CSCO)	AT&T (T)	KeyCorp (KEY)	HP Inc. (HPQ)
PE Ratio (TTM)	11.4	17.2	6.9	7.6	12.3
Market Cap (USD)	$161.95 billion	$210.5 billion	$157 billion	$15.82 billion	$34.66 billion
Free Cash Flow (USD)	$12.6 billion	$15.4 billion	$16.2billion	$2.1 billion	$4.5 billion
Revenue Growth YoY (2021 2024)	+7%	+6%	+1%	-1%	+10%
EPS (TTM)	$3.74	$3.23	$2.41	$1.42	$3.12
EBITDA Change (2021 – 2024)	+10%	+12%	-3%	-5%	+14%
Dividend Yield	5.88%	3.03%	5.07%	4.89%	3.06%
Dividend Yield (3-year average)	+4%	+6%	+2%	+2%	+5%
Dividend History	12 years	11 years	36 years	14 years	10 years

Key Stock Highlights

1. Pfizer (PFE)

• Description: Pfizer is world’s largest pharmaceutical company providing a broad range of medicines and vaccines. It caught the attention of many people during the COVID-19 pandemic as it was one of the first companies to produce a vaccine.
• Products: Pfizers leading products include vaccines, anti-inflammatory, oncology, cardiovascular, and Specialty Care Products.
• Dividend Perspective: Pfizer has a dividend yield of 4.2% and has a good record for paying dividends currently for the last 12 years. Though Pfizer is expected to realize only 7% year on year growth in the revenue from 2021 to 2024, its free cash flow is large and the consistency in the earnings enhances its position among the dependable dividend payer companies. [1]

2. Cisco (CSCO)

• Description: Cisco is a global company that develops and sells networking and telecommunications products and services along with cybersecurity products.
• Products: Cisco’s products are routers, switches, security, and software platforms for enterprise industries.
• Dividend Perspective: The current dividend yield is 3.1%, while the three years dividend growth is 6%. The current consistently positive free cash flow of $15.4bn means the firm can support dividend payouts, making it an attractive stock for tech-oriented income seekers and also make it stand among the best stocks under $50 for income investors in 2024. [2]

3. AT&T (T)

• Description: AT&T is one of the biggest telecommunication companies which offers wireless communications, broadband Internet access and voice broadcasting and cable television services.
• Products: Mobile services, broadband service and, streaming platform from WarnerMedia are the main offerings of AT&T.
• Dividend Perspective: AT&T seems better, albeit with the lowest yield at 7.2%, though its revenue and EBITDA growth have been stagnant or negative lately. It has established itself as a strong dividend paying company, which has paid dividends for a period of 36 years despite some problems facing the company operations.

4. KeyCorp (KEY)

• Description: KeyCorp is a regional bank holding company, based in Ohio. It is engaged in commercial bank, investment banking, Insurance services, real estates, and various types of consumer loans.
• Products: KeyCorp products include loans, mortgages, insurance, as well as financial service products.
• Dividend Perspective: Nonetheless, KeyCorp has a good dividend yield that stands at 5.6 % hence make it an attractive to investors mainly those interested in dividend income in banking sector. Though its total revenue has marginally reduced over the last few years, dividend lovers can be happy to know that this stock has a 14-year dividend record and has been generating constant cash flow.

5. HP Inc. (HPQ)

• Description: HP Inc. is one of the world’s largest producers and suppliers of personal computers, printers, and other related technologies.
• Products: Laptops, desktops, printers, and PC peripherals are the main product lines of HP.
• Dividend Perspective: Current dividend yield is 3.4% with a five years dividend growth rate of over 5%. The slow and steady FCF of $4.5 billion and YoY revenue growth of 10% certainly put this company among those that can offer both – high potential for regular income and reasonable growth rates. [3]

Our Perspective on Fair Valuation

The PE ratios, free cash flow and, the dividend growth of these stocks offer the investor an evaluation of their fair value. For instance, Pfizer (PFE) has PE ratio of 11.4, and according to dividend yield as well as the EPS, this is still considered underpriced. On the other hand, Cisco (CSCO) trades at a slightly higher PE ratio of 17.2 but which is reasonable given the constant upward trend of both revenues and Free Cash Flow’s. [4]

AT&T (T) has one of the highest dividend yields; however, the company has issues in terms of revenue growth, and more so the low PE ratio (6.9) depict investors’ concern on future prospects of the company’s profitability. If investors need steady a long-term growth combined with dividends, this fact should be considered.

Moreover, for 3M (MMM), even though there has been some recent stagnation on the level of revenues, the company is attractive because of steady dividends. Last, with relatively low PE ratio of 9.8, HP Inc. (HPQ) has notably high revenue and anticipated dividend growth rates, making it an especially attractive investment for a dividend-focused tech sector stock.

Conclusion

Dividend stocks under $50 are thus a great investment for creating a steady source of income. Many of the companies listed here as the best for investing include Pfizer, Cisco, AT&T, 3M, and HP due to their reliable dividend history, quality cash flows, and low stock prices. Even though all these stocks are exhibiting potential for good returns, caution must be taken when investing in the mentioned stocks and other related stocks depending on personal financial targets.

**Please be informed that the content is informational and by no means serve as a buy or sell signal. The company is not responsible for the loss of capital.