2 Absurdly Cheap Dividend Stocks to Buy With $1,000 Right Now
If you're looking to invest $1,000 in a dividend stock, look to the pharmaceutical sector.
Overview
Dividend stocks can be tricky for investors. If you're looking to invest $1,000 and benefit from a stock that pays a dividend, you have to look past the stock's yield.
Yes, it's nice to have an above-average yield, but a company with an unsustainable dividend is no bargain. If the payout ratio is too high, there's a good chance a dividend cut is in the future, and that will likely lead to the stock's price tumbling as well, a double-whammy for investors.
Two healthcare stocks offering above-average dividend yields, paired with valuations that appear underpriced relative to historical standards and broader industry peers, are Bristol Myers Squibb (NYSE: BMY) and Pfizer (NYSE: PFE). Their shares are up more than 23% and 14%, respectively, so far this year.
Details
Source
Originally published at www.fool.com.