3 Top Dividend Stocks on Sale: Snag Them Today!

Looking to purchase a solid dividend stock at an excellent price? Here’s a selection of three stocks that can assist you in broadening your investment mix, earning higher-than-normal dividends, and potentially getting them for a steal.

Three currently undervalued stocks that you might consider not passing up include Bristol Myers Squibb (NYSE: BMY) , United Parcel Service (NYSE: UPS) , and Dell Technologies (NYSE: DELL) Here’s a detailed view of why these stocks could be excellent purchases.

Start Your Mornings Smarter! Wake up with Breakfast news In your inbox each trading day. Register Now for Free »

Bristol Myers Squibb

The major pharmaceutical company Bristol Myers Squibb is being traded at a considerable discount; you have the opportunity to purchase the stock with a forward valuation. price-to-earnings (P/E) multiple with an estimate of merely 9. In contrast, the typical stock within the S&P 500 Trades at 21 times its projected earnings.

Several factors may make investors pessimistic about this stock. Firstly, the company will encounter several significant patent expirations soon. Secondly, it carries substantial debt; at the close of 2024, the firm’s long-term liabilities amounted to $47.6 billion. This figure appears particularly large when compared with its holdings of cash and marketable securities, which summed up to only $11.2 billion. However, its short-term debts—those maturing within the next year—are much smaller, totaling around $2 billion.

In the meantime, the firm has been pouring resources into expanding its business. Over the last year, they have obtained two significant approvals — one for the antipsychotic medication Cobenfy intended for schizophrenia patients, and another for the cancer therapy Breyanzi. These both hold considerable promise. blockbuster drugs That has the potential to generate billions in revenue for Bristol Myers Squibb.

The firm's dividends remain well-supported due to robust finances. payout ratio At 60%, it indicates that there is no immediate risk, which makes its 4% yield an appealing choice for investors looking for dividends at this moment.

The stock carries certain risks, yet with promising growth ahead, the company appears well-positioned for future success. Additionally, considering the significant discount, Bristol Myers Squibb’s affordable pricing could provide a reasonable return. margin of safety .

United Parcel Service

United Parcel Service, commonly referred to as UPS, has dropped by 25% within the last year, causing the stock’s valuation to fall below a forward price-to-earnings ratio of 15.

The logistics firm has faced challenges in achieving significant expansion over the past few years, and worries regarding tariffs and trade conflicts might render this an insecure investment going forward. Should a downturn occur along with reduced commercial activities, it would likely lead to decreased work volume for UPS.

Nonetheless, UPS stock remains an excellent choice for the long term. As a frontrunner in logistics, even though business may not be surging, it continues to turn a profit. The firm reported earnings of $5.8 billion last year amid revenues totaling $91.1 billion. Despite having a payout ratio close to 100%, the company maintains stability. free cash flow amounted to $6.2 billion last year, surpassing the $5.4 billion paid out as dividends.

The distribution remains secure, which could make this an attractive option for income-focused investors seeking stocks with its substantial yield of 5.7%.

Dell Technologies

A stock that could appeal to both dividend and growth investors right now is Dell. This computer firm is trading at an exceptionally low forward price-to-earnings ratio of just 10. There’s substantial potential for growth due to its involvement in artificial intelligence (AI). Additionally, Dell stands to benefit from an expected uptick in PC upgrades, considering the impending cessation of support for over one billion Windows 10 devices towards the end of this year.

Dell’s server and networking sector continues to perform well, as evidenced by a substantial 54% increase in sales within this division during their latest fiscal year, concluding January 31st. The advent of AI-driven personal computers might further boost Dell’s prospects, making this an opportunity for remarkable expansion. growth stock .

The stock has a 2.2% dividend yield, which is the smallest among those listed here; however, it provides a solid equilibrium for investors. Given Dell’s conservative payout ratio of 28%, it stands well-positioned to continue paying dividends while simultaneously exploring expansion prospects within the realm of artificial intelligence.

Don't let this second chance for a potentially profitable opportunity slip away.

Have you ever felt like you've missed out on purchasing the most profitable stocks? If so, you should definitely listen to this.

From time to time, our skilled group of analysts releases a “Double Down” stock Here's a suggestion for firms that seem poised for growth. Should you fear missing out on potential gains, this might be an ideal moment to purchase shares prior to their inevitable rise. The data clearly indicates this trajectory.

• Nvidia: If you had put in $1,000 when we increased our investment in 2009, you’d have $312,980 !*
• Apple: If you had invested $1,000 when we increased our investment in 2008, you’d have $42,421 !*
• Netflix: If you had put in $1,000 when we increased our investment in 2004, you’d have $537,825 !*

Currently, we're sending out "Double Down" alerts for three amazing companies, and such an opportunity might not come around again anytime soon.

Continue »

*Stock Advisor returns as of March 24, 2025

David Jagielski does not hold any shares in the companies mentioned. However, The Motley Fool holds stakes in and endorses Bristol Myers Squibb. They also recommend investing in United Parcel Service. Furthermore, The Motley Fool has a disclosure policy .