3 Incredibly Cheap Dividend Stocks to Buy Now

Investing in dividend stocks can be a lucrative strategy for generating passive income and growing wealth over time. However, finding undervalued dividend stocks with high growth potential can be a challenging task. In this article, we will explore three incredibly cheap dividend stocks that offer attractive yields and strong growth prospects.


1. Yum China Holdings, Inc. (YUMC)

Yum China is a leading restaurant operator in China, with a diverse portfolio of brands including KFC, Pizza Hut, and Taco Bell. The company has a strong track record of growth and has been consistently increasing its dividend payments over the years.

YUMC currently offers a dividend yield of approximately 1.35%, which is relatively low compared to other dividend stocks. However, the company's strong earnings growth and expanding profit margins make it an attractive investment option. YUMC's earnings per share (EPS) have grown at a compound annual growth rate (CAGR) of 17.5% over the past five years, and its profit margins have expanded from 11.5% in 2019 to 14.0% in 2023.


2. McDonald's Corporation (MCD)

McDonald's is a global fast-food giant with a strong brand and extensive international presence. The company has a long history of paying dividends and has consistently increased its dividend payments over the years.

MCD currently offers a dividend yield of approximately 2.2%, which is relatively high compared to other dividend stocks. The company's strong earnings growth and expanding profit margins make it an attractive investment option. MCD's EPS have grown at a CAGR of 8.5% over the past five years, and its profit margins have expanded from 28.5% in 2019 to 31.5% in 2023.


3. Coca-Cola Company (KO)

Coca-Cola is a global beverage giant with a strong brand and extensive international presence. The company has a long history of paying dividends and has consistently increased its dividend payments over the years.

KO currently offers a dividend yield of approximately 2.7%, which is relatively high compared to other dividend stocks. The company's strong earnings growth and expanding profit margins make it an attractive investment option. KO's EPS have grown at a CAGR of 7.5% over the past five years, and its profit margins have expanded from 22.5% in 2019 to 25.5% in 2023.


In conclusion, Yum China Holdings, Inc. (YUMC), McDonald's Corporation (MCD), and Coca-Cola Company (KO) are three incredibly cheap dividend stocks that offer attractive yields and strong growth prospects. Investors looking for undervalued dividend stocks with high growth potential should consider adding these companies to their portfolios.