One way for investors to offset the negative impact of inflation is to generate regular income via dividend stocks. In the past 90 years, dividends have accounted for about 40% of the total stock market return. The combination of a rising stock price and a regular dividend can work wonders for long-term returns.
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Dividends from high-quality stocks can also be a reliable source of income during economic downturns. Fortunately, there are plenty of dividend stocks out there that don’t cost an arm and a leg. Here are 10 of the best dividend stocks under $20, according to CFRA:
| Stock | Upside Potential* | Forward Dividend Yield |
| Vale SA (ticker: VALE) | 33.1% | 14.1% |
| Barrick Gold Corp. (GOLD) | 19.2% | 2.1% |
| Cenovus Energy Inc. (CVE) | 43.6% | 3.6% |
| Nokia Corp. (NOK) | 12.2% | 2.8% |
| Huntington Bancshares Inc. (HBAN) | 30.7% | 3.8% |
| Telefonica SA (TEF) | 12.6% | 7.1% |
| Host Hotels & Resorts Inc. (HST) | 37.4% | 5.0% |
| Aegon Ltd. (AEG) | 19.6% | 5.6% |
| Invesco Ltd. (IVZ) | 27.9% | 4.7% |
| AES Corp. (AES) | 64.8% | 6.3% |
*As of Feb. 26 close.
Vale SA (VALE)
Vale is a Brazilian mining company and is one of the world’s largest iron ore and nickel producers. Vale’s stock has an impressive 14% dividend yield, the highest on this list. Analyst Matthew Miller says Vale has taken meaningful steps to significantly improve its safety protocols following the deadly Brumadinho and Samarco dam disasters. Miller says the company’s current management team has prioritized mitigating risk, and he says Vale’s strong balance sheet suggests the company can continue to aggressively return cash to shareholders. CFRA has a “buy” rating and $13 price target for VALE stock, which closed at $9.76 on Feb. 26.
Barrick Gold Corp. (GOLD)
Barrick Gold is one of the world’s largest gold mining companies. Gold spot prices are up about 10% year to date, trading at record highs and approaching $3,000 per ounce. Not surprisingly, Barrick’s stock price has also jumped about 17% in 2025, the best performance of any stock on this list. Miller projects gold and copper prices will continue to rise, supporting Barrick’s margins. He says Barrick shares trade at a valuation discount compared to gold mining peers, and the company’s assets hold significant untapped value. CFRA has a “strong buy” rating and $22 price target for GOLD stock, which closed at $18.45 on Feb. 26.
Cenovus Energy Inc. (CVE)
Cenovus Energy is a Canadian integrated oil company focused on exploration and production of bitumen in Canada and crude oil refining in the U.S. Analyst Stewart Glickman says the long-delayed Trans Mountain pipeline expansion will help Cenovus get much better pricing for crude oil from the company’s Western Canada operations. Glickman is bullish on Cenovus’ high-quality oil sands properties, including Christina Lake and Foster Creek. He says these properties support the lowest break-even prices among oil sands producers, limiting the company’s exposure to potential oil market weakness. CFRA has a “buy” rating and $20 price target for CVE stock, which closed at $13.92 on Feb. 26.
Nokia Corp. (NOK)
Nokia is a telecom equipment and digital map data vendor that also licenses intellectual property to third parties. Analyst Firdaus Ibrahim says the early stages of the global 5G network investing cycle have gained significant momentum, particularly in China and North America. He anticipates the 5G cycle will be larger and longer-lasting than previous network cycles, supporting Nokia’s demand over the next few years. Ibrahim says Nokia has successfully navigated a challenging environment in recent years, including inflation pressures and supply chain disruptions. CFRA has a “buy” rating and $5.50 price target for NOK stock, which closed at $4.90 on Feb. 26.
Huntington Bancshares Inc. (HBAN)
Huntington Bancshares is a U.S. regional bank offering full-service consumer and commercial banking, insurance, brokerage services and investment management, mostly in the Midwest region. Analyst Alexander Yokum says Huntington’s expansion efforts will create value for investors. In fact, the company plans to open more than 50 new bank branches in the Carolinas over the next five years. Yokum says the Trump administration will also provide a favorable regulatory environment for banks, and he projects record net interest income and non-interest income for Huntington in 2025. CFRA has a “buy” rating and $21 price target for HBAN stock, which closed at $16.06 on Feb. 26.
[READ: 15 Best Dividend Stocks to Buy Now]
Telefonica SA (TEF)
Spain’s Telefonica is an attractive international telecom dividend stock. Analyst Adrian Ng says Telefonica has made several major restructuring changes to its portfolio in recent years that have helped the company significantly reduce debt and simplify and streamline its business. These changes include acquiring E-Plus in Germany and GVT in Brazil. Telefonica also exited the Central American market and combined its U.K. telecom assets in a joint venture deal with Liberty Global Ltd. (LBTYA, LBTYB). Ng says Telefonica’s business finally has positive momentum. CFRA has a “buy” rating and $5 price target for TEF stock, which closed at $4.44 on Feb. 26.
Host Hotels & Resorts Inc. (HST)
Host Hotels & Resorts is a hotel and resort real estate investment trust (REIT) that owns luxury hotels in North and South America. Analyst Nathan Schmidt says stable economic conditions will support lodging demand in 2025. Schmidt says demand for local travel will outpace international travel demand this year, and the post-pandemic recovery in business and group travel will continue. He says Host has a healthy balance sheet, and its luxury properties are better insulated from a potential U.S. recession than the hotel industry as a whole. CFRA has a “buy” rating and $22 price target for HST stock, which closed at $16.01 on Feb. 26.
Aegon Ltd. (AEG)
Aegon is a Dutch insurance company that offers insurance, savings, pension, and investment products and services around the world. Analyst Jeff Lye says Aegon management is focusing on extracting capital from non-core assets and investing in strategic assets that generate an attractive return on capital and reduce capital ratio volatility. Lye says Aegon’s contractual service margin has improved, increasing financial visibility. In addition to its dividend, Aegon’s sizable share repurchasing plan, which will be completed by mid-2025, suggests the company is confident about its outlook. CFRA has a “buy” rating and $7.50 price target for AEG stock, which closed at $6.27 on Feb. 26.
Invesco Ltd. (IVZ)
Invesco is an independent global investment management company that provides a wide range of investment products and services for retail, institutional and high-net-worth customers. The company’s popular products include its PowerShares exchange-traded funds. Analyst Catherine Seifert says Invesco has been outpacing its peers in assets under management growth, and she says the company’s product mix is attractive. Seifert says Invesco has also done an impressive job of supporting margins by cutting costs. She projects organic growth and solid fund flows for Invesco in 2025. CFRA has a “buy” rating and $22 price target for IVZ stock, which closed at $17.19 on Feb. 26.
AES Corp. (AES)
AES is one of the world’s largest independent power generators and distributors, and the company also develops renewable energy infrastructure. AES shares are down about 18% so far in 2025, the worst performance on this list. However, analyst Daniel Rich says the recent weakness is a buying opportunity for long-term investors given the company’s large project backlog and its deals with major tech giants looking to manage carbon output, including Google, Microsoft and Amazon. Rich says AES is also reducing its non-regulated business exposure by divesting assets. CFRA has a “buy” rating and $18 price target for AES stock, which closed at $10.92 on Feb. 26.
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10 Best Cheap Dividend Stocks to Buy Under $20 originally appeared on usnews.com
Update 02/27/25: This story was published at an earlier date and has been updated with new information.
