3 Absurdly Cheap Dividend Stocks to Buy for Under $100 Right Now

Interest rates and bond yields have risen recently, making dividend stocks less appealing for investors who can earn high returns without purchasing income-generating stocks. However, this has caused many dividend stocks to trade at lower prices, raising their yields and potentially leading to significant gains in the future. Three affordable dividend stocks currently trading under $100 are AT&T (T +0.60%), Pfizer (PFE -0.18%), and Zoetis (ZTS -3.13%).

Here's why they can be excellent choices for investors seeking income in their portfolios right now.

AT&T has been performing well this year, but no significant boost has emerged to make the telecom stock a hot buy. Investors are seeking higher returns elsewhere, and there are concerns that SpaceX plans to transform Starlink into a major U.S. carrier, which could disrupt the entire telecom industry. These worries have negatively impacted AT&T's stock, which has decreased by approximately 16% this year.

Despite posting a revenue growth of over 5% in the September quarter, which is higher than usual, the stock hasn't rallied as expected. Currently, AT&T is trading at around $21, with a price-to-earnings (P/E) multiple of 11, which is exceptionally low compared to the S&P 500 average of 23. Moreover, AT&T's stock yields 5.3%, offering investors an additional incentive to purchase it, as it's not only cheap but also provides high recurring income.

Pfizer's stock has been doing well this year, unlike previous years when investors were cautious despite the company's strong, consistent results. Even at around $30, this stock is undervalued. While Pfizer has been investing in growth for years, the market has been overly critical, causing Pfizer shares to drop by more than 30% over five years.

Its P/E multiple of 39 appears high; however, Pfizer has been incurring nonrecurring expenses as it strives to streamline its operations and become more efficient. Based on analyst projections of future earnings, Pfizer's forward P/E multiple is relatively low at just 10. Additionally, its yield of 5.8% is even higher than AT&T's.

Pfizer's stock has experienced the most significant decline on this list, falling by 37%. However, the stock still offers a yield well above the average, and its strong financials, with a modest payout ratio of around 34% of its earnings, support the dividend. The stock trades below $80, and its P/E multiple is only 13. Long-term investors willing to be patient may find this another solid stock to buy right now.