For income investors with a smaller amount of new money to put to work, going for some of the lower-priced stocks could make a lot of sense, especially if one’s brokerage doesn’t allow for the purchase of partial shares. And while the low market price of a stock has absolutely nothing to do with the intrinsic value to be had, I think it’s pretty safe to say that it’s just a heck of a lot more convenient for investors to do some buying with what remains after payday.
In this piece, we’ll look at three dividend payers that trade for less than $25 per share and just so happen to be attractively valued at the time of writing. As is typical, lower-priced stocks may be more typical of stocks that have either imploded in the past or boast a market cap that would classify them as a mid-cap or even small-cap stock.
Such smaller-cap stocks or previously imploded names can be a lot more volatile, so investors should ensure due diligence well ahead of time. Without further ado, let’s get into the names, which, I think, are great buys for smaller investors at today’s prices.
Ford Motor
Ford Motor (NYSE:F) is a nearly $50 billion auto maker that’s been quite a turbulent ride in the past decade. Today, the stock goes for $12 and change per share alongside a 4.7% yield, making it a bountiful income option for bargain hunters who also value having a ton of shares with a relatively modest amount to invest.
Indeed, it’s been tough sledding for Ford shares ever since the brief boom of 2021 rolled over. And while Ford stands out as a deep-value option, especially for those looking for electric vehicle (EV) innovation, there have been serious challenges and seemingly never-ending headwinds to grapple with.
At least one headwind in tariffs will be less burdensome with recent reports that Trump plans to offer tariff relief to domestic car producers. With shares now up close to 38% in the last six months, I do think the “sleeping giant” in autos could roll a lot higher over the next 18 months. At 8.9 times forward price-to-earnings (P/E), with iconic brands (think Mustang and the F-150) underneath the hood, I’d be inclined to give the firm the benefit of the doubt.
Kraft Heinz
Up next, we have one of Warren Buffett’s rare soured bets in Kraft Heinz (NASDAQ:KHC), which has continued to be a falling knife in the past year. The stock has shed close to 73% of its value from its 2017 peak. Now going for around $25 per share with a 6.1% yield, the ketchup and Mac & Cheese maker stands out as one of the deepest value bets in the entire market.
Indeed, Buffett may be “disappointed” with the company’s plans to split. However, I think it’s a shareholder-creative move that might unlock considerable value. Time will tell what Buffett’s legendary conglomerate does with its stake. Either way, I think shares of the ailing condiments king are finally worth buying here, if not for the dividend, for the value to be had.
Invesco
Invesco (NYSE:IVZ) is a name you’re probably familiar with if you’re an ETF investor. The asset manager’s stock has gained over 89% in the past six months. Now at $24 and change per share, with a 3.5% yield, the $10.8 billion mid-cap behind such popular ETFs as the QQQ seems like a great pick-up on recent strength.
While there’s a lot of competition in the passive fund market, I do think the great bull market could cause even more inflows. Add the potential for actively managed ETFs to hit the spot, and I think Invesco is a name to keep watch on while shares trade at a mere 10.4 times forward P/E. If the AI boom really does have years to go (or more innings to go, to keep that baseball analogy alive and well), IVZ could be in for a sustained run to even higher levels.
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