Dividend stocks that trade at cheap valuations can give investors multiple ways to profit from them. In addition to Dividend income, you're also potentially setting yourself up for the possibility of profiting from a higher price in the future -- assuming, of course, the business does well. Heading into 2024, there are many good deals for Dividend stocks, as many investors were focused on growth stocks this past year.

One underrated dividend stock investors may want to consider investing in is Takeda Pharmaceutical (NYSE: TAK). The Japanese pharma company pays a dividend that yields 4.2% -- close to three times higher than the S 500 average of 1.5%. Here's a closer look at why this might be a good income stock to buy right now.

Takeda Pharmaceutical is one of the top drug companies in the world. Its portfolio contains a broad mix of products in multiple segments, including gastrointestinal and inflammation, neuroscience, oncology, rare genetics and hematology, and vaccines. Its top-selling product, Entyvio, treats Crohn's disease and ulcerative colitis. It generated revenue totaling 391.7 billion Japanese yen ($2.7 billion) over the past six months (up until the end of September) and grew at a rate of 5.8% year over year.

Continue reading

Source Fool.com