What's better than a high-yielding dividend stock? A high-yielding dividend stock that's trading at a dirt-cheap price. As long as the underlying business is in strong shape, buying a cheap dividend stock can help maximize your long-term profits as you benefit from both the stock rising in value, assuming it rallies, and from the dividend income you'll earn from holding it.

Bristol Myers Squibb (NYSE: BMY), Verizon Communications (NYSE: VZ), and ExxonMobil (NYSE: XOM) are not only cheap, but they pay you more than double the S 500 average of 1.4%. Here's why these dividend stocks are worth buying right now.

Shares of Bristol Myers Squibb have been under pressure over the past 12 months, falling by 30%. Although this is a top healthcare company to invest in with a market cap of around $100 billion, investors are concerned for multiple reasons. The first is its high debt load of more than $40 billion, which makes the stock unattractive, particularly as interest rates are high. Secondly, there's also the concern of what lays down the road for Bristol Myers, which has multiple top-selling drugs losing patent protection in the years ahead.

Continue reading

Source Fool.com