Great Dividend Stocks That Won't Break the Bank

It's always nice to be paid for holding onto a company's stock(s). That's what makes dividends special. But some dividends tend to cost an arm and a leg or are overvalued, leaving you wondering if it's truly worth it. However, there are some stocks that will help, not hurt, your pockets. Here are a few stocks that you should consider picking up for your portfolio.

  1. United Wholesale Mortgage: The Michigan-based company has an enviable price of $4.45, making it a steal. You also get paid $0.10 (dividend yield of 8.75) per share, making it even better. What's more is that it's near its 52-week low, making it prime to go up in value. With the real estate market rolling along nicely and its P/E ratio looking great, you should buy United Wholesale stock in bulk.

  2. Vici Properties: This real estate company has many things going for it, starting with an excellent dividend payout ratio of 72.25%. It's also undervalued, sitting pretty at $28.37. Like UWM, its industry is ramping up, making it suitable for investors to jump in, especially with its yield of 4.78.

  3. New Residential Investment: You're probably noticing a trend of real estate companies being big hits in the dividend sector. Low P/E ratios, low prices, and high yields make these the cream of the crop. But this New York-based firm also has a sizable market cap of five billion. Its earnings also jumped significantly in the past couple of quarters, especially after its EPS shattered its previous mark with 26.73% growth.

  4. Bank of America: Now here's a bit of a curveball for you. While Bank of America doesn't have the yield, nor is it in the real estate sector (banking), its dividend has increased for eight years straight. There are many other factors that make it appealing, including it being undervalued (P/E ratio of 13.56%) and a strong one-year performance (49.18%). If you're looking to earn money in the long term, Bank of America is your best bet.

  5. Energy Transfer: Texas is known as an oil-rich state and that applies to the stock market. Energy Transfer has many attractive features as a dividend stock, from its value ($10 per share) to the outlook of growing natural gas liquids exports. It's also well-positioned to fund its growth projects by reducing its cost of capital through consolidation.

  6. AT&T: Yes, their dividend is going to take a hit. This is especially true after the WarnerMedia spinoff with Discovery. However, it has a target price of $29 and the company reported that the expected future dividend per share is $1.11. Whether the latter is true remains to be seen. Still, having a quarterly dividend of $0.52 now is respectable in its own right.