2 Incredibly Cheap Dividend Stocks to Buy Now
One of the key benefits of owning dividend stocks is the ability to reinvest the dividends to take advantage of the power of compounding. However, not all dividend stocks are table-pounding buys. A fair number of these equities sport premium valuations and offer little upside potential as a result. The good news is that the recent volatility in the broader markets has created some attractive buying opportunities in the dividend stock landscape.
For example, telecom giant (NYSE: T) and healthcare titan Kenvue (NYSE: KVUE) have both had a rough 2023. AT's shares have lost 17.9% year to date, while Kenvue's stock has plunged by more than 22% since its debut on the New York Stock Exchange in May. Here's why both of these struggling dividend stocks scan as undervalued and worth buying after their recent pullback.
AT has faced many challenges this year. The company's stock has been under enormous pressure since the telecom reported first-quarter results back in April. The market has reacted negatively to various issues such as slowing postpaid phone net adds, new forms of competition entering the market, potential liabilities stemming from legacy infrastructure, a high debt load, and underwhelming free cash flow (FCF) generation.
Source Fool.com
