If you have been mulling over the decision to invest wisely, your first choice must be dividend stocks. A dividend stock is a boon for any investor because it assures him of stability even when the markets are volatile. You, as an investor, would like to keep getting regular yields on your investment and, at the same time, would also have your own inhibitions when investing huge amounts. If you are a conservative investor, the ideal choice for you would be stocks that are cheap and that yield regular dividends. In the current market trend, if you want to invest in dividend stocks that are cheap, you can consider the following companies, as they are the best in the industry as of now.
Johnson & Johnson
Johnson & Johnson (JNJ, Financial) is one of the most reliable companies in the healthcare segment. Though the healthcare industry has been highly dynamic, Johnson & Johnson has been able to sustain reasonably well here due to its innovative product launches and pricing capacities. If you are looking for a cheap stock to invest in that will keep giving you regular yields with absolutely no risk at all, this is the ideal option for you. The company has been the top pick among various other cheap dividend stock choices because of its diverse operating nature.
The consumer products division of Johnson & Johnson has seen a decline in growth in the last year; however this has been offset by excellent brand reputation that it enjoys among its investors and stakeholders. The demand for the products of Johnson & Johnson is always on a peak. The company has been earning sizeable profits from its pharmaceutical business as well. For the second quarter of 2014 alone, Johnson & Johnson has earned around $12.5billion total sales as a result of the 14 new products launched in this sector. The current dividend yield of this company is 2.6%.
American Eagle Outfitters
When it comes to the teen retailers segment, American Eagle Outfitters (AEO, Financial) is one of the most trusted names for an investor. This is a cheap dividend stock and has a large customer base in the form of teenaged kids and parents. The store offers huge discounts during the school reopening season and keeps moving and updating its stock on a regular basis. Though its competitors too offered hefty discounts during peak season, American Eagle Outfitters has warded off all kinds of competition and has emerged one of the top picks in this industry. The main reason for its ability to sustain in this dynamic industry is because it keeps moving and updating its stock on a regular basis. The stocks had come down by 10% for Q3 2014 when compared with the figures of Q3 2013.
Just like any other company in this industry, American Eagle Outfitters too, had its share of lows in the form of low sales and profit margins. However, it bounced back strongly and devised many strategies like reduced operating costs, speedy disposal of existing stock, reordering the latest fashion trends for teens and pricing its stock at extremely customer –friendly prices. Today, the company enjoys great goodwill among all its stakeholders as it is involved in great marketing strategies that are quite aggressive and are sure to take the company to great levels in the near future. The current dividend yield of American Eagle Outfitters is 3.9%.
Exelon
The energy sector is one of the most volatile segments in the stock market today. In spite of it, if Exelon (EXC, Financial) is one of the top picks of cheap dividend stocks of 2015, it is purely because of some clever business strategies that the company has followed. The company’s acquisition of an electric company based out of Atlanta, Pepco Holdings (POM, Financial), has lent the much-needed stability to Exelon. It is believed that this acquisition will bring in some structure to Exelon’s business operations and safeguard it from the volatility of the energy sector. Due to the stable nature of Pepco’s business, Exelon’s share prices will not see unreasonable fluctuations. This will improve the profitability of Exelon to a great extent.
Since nuclear energy is of top priority when it comes to energy resources, Exelon stands a good chance to come up as a sure winner during this year. With the current dividend yield of 3.5%, Exelon is definitely one of the best dividend stocks that you can buy at an affordable rate right now.
Conclusion
Dividend stocks are the most preferred by investors today, because return on investment becomes very important for them. The key to a clever investment decision is the timing of buying or selling. Investors need to follow the market conditions carefully to understand the growth of each and every sector and buy shares when they are cheap in order to reap benefits. The shares of the companies listed above come with the goodness of 3 important factors – low risk and hence less exposure to market volatility, cheap purchase price and stable dividend pay-outs.
