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, as the combination of a rising stock price and a regular dividend can work wonders in the long term.
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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 | Forward Dividend Yield* |
| Energy Transfer LP (ticker: ET) | 7.2% |
| NatWest Group PLC (NWG) | 5.5% |
| Telefonica SA (TEF) | 6.3% |
| Nokia Corp. (NOK) | 3.4% |
| Vodafone Group PLC (VOD) | 5.0% |
| Cenovus Energy Inc. (CVE) | 3.9% |
| Huntington Bancshares Inc. (HBAN) | 3.9% |
| Healthpeak Properties Inc. (DOC) | 7.1% |
| Aegon Ltd. (AEG) | 5.9% |
| Host Hotels & Resorts Inc. (HST) | 5.1% |
*As of June 16 close.
Energy Transfer LP (ET)
Energy Transfer is a U.S. oil and gas infrastructure provider with a focus on liquids logistics. The stock has a 7.2% dividend yield, the highest on this list. Analyst Stewart Glickman says Energy Transfer’s assets in the Gulf of Mexico region set the company apart from competitors. Glickman says Energy Transfer’s distributable cash per share exceeds its distributions, suggesting its impressive dividend yield is safe. Rising volumes and hydrocarbon demand are tailwinds for midstream operators, and Glickman says Energy Transfer’s business is well diversified. CFRA has a “buy” rating and $19 price target for ET stock, which closed at $18.15 on June 16.
NatWest Group PLC (NWG)
NatWest is a U.K. retail and commercial bank and financial services provider. Analyst Firdaus Ibrahim says NatWest’s digital transformation efforts, disciplined growth and strong balance sheet have improved profitability. Ibrahim says NatWest has managed its risk prudently while optimizing its operations. Unlike other large U.K. banks, Ibrahim says NatWest’s business is concentrated domestically, reducing its exposure to the international trade war. While he anticipates a slight decline in revenue for NatWest in 2025, Ibrahim projects hedging benefits, active pricing management and volume growth this year. CFRA has a “buy” rating and $15 price target for NWG stock, which closed at $14.24 on June 16.
Telefonica SA (TEF)
Spain’s Telefonica is an attractive international telecom stock. Analyst Adrian Ng says Telefonica has made several major restructuring changes in recent years that have helped the company significantly reduce debt and simplify and streamline its business. These changes include acquiring GVT in Brazil, exiting Central America and combining its U.K. telecom assets in a joint venture deal with Liberty Global. Ng says Telefonica is investing in initiatives that will grow average revenue per user, including investing in next-generation networks. CFRA has a “buy” rating and $5 price target for TEF stock, which closed at $5.39 on June 16.
Nokia Corp. (NOK)
Nokia is a telecom equipment and digital map data vendor that also licenses intellectual property to third parties. Analyst Nazmi Ghazali says the early stages of the global 5G network investing cycle have gained significant momentum, particularly in China and North America. Ghazali anticipates the 5G network cycle will be larger and longer-lasting than previous network upgrades, supporting Nokia’s demand for years to come. Despite challenges related to inflation and supply chain disruptions, Nokia’s management team has executed well and exceeded expectations. CFRA has a “buy” rating and $5.50 price target for NOK stock, which closed at $5.30 on June 16.
Vodafone Group PLC (VOD)
Vodafone is a leading global wireless communications provider that has assets focused in mature markets in Western Europe and high-growth emerging markets in Asia and Africa. Ng says Vodafone has emerged from its portfolio restructuring efforts as a leaner, more efficient company. The company’s fiscal 2026 guidance has improved, and Ng expects the German mobile and fixed-services businesses will rebound. Vodafone is expected to complete its merger with Three UK in the near future, and Ng anticipates the combination will result in significant cost synergies. CFRA has a “buy” rating and $11 price target for VOD stock, which closed at $10.24 on June 16.
[Read: 15 Best Dividend Stocks to Buy Now]
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. Glickman says the long-delayed Trans Mountain pipeline expansion will help Cenovus realize better pricing for crude oil from the company’s Western Canada operations. Glickman says its U.S. assets provide diversification, and Cenovus’ high-quality oil sands properties at Christina Lake and Foster Creek feature some of the lowest break-even costs in the industry, insulating the company from downturns in oil prices. CFRA has a “buy” rating and $17 price target for CVE stock, which closed at $14.65 on June 16.
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. Analyst Alexander Yokum says Huntington’s expansion efforts will create value for investors. After a flat year of revenue growth in 2024, Yokum projects lower funding costs, fee income growth and industry-leading lending momentum will fuel 7% revenue growth for Huntington in 2025. He says merchant acquisition, wealth management, digital payments and capital markets will also provide fee-income growth opportunities. CFRA has a “buy” rating and $18 price target for HBAN stock, which closed at $15.55 on June 16.
Healthpeak Properties Inc. (DOC)
Healthpeak properties is a California-based health care real estate investment trust (REIT) that invests in facilities throughout the U.S. Analyst Nathan Schmidt says Healthpeak’s merger with Physicians Realty Trust significantly increased its medical office exposure and helped advance Healthpeak’s restructuring efforts to focus on the life sciences industry. Schmidt says the life sciences industry will face headwinds in the near term, but he predicts it will be a long-term secular growth market that will serve Healthpeak well given the REIT’s high-quality assets in key markets. CFRA has a “buy” rating and $21 price target for DOC stock, which closed at $17.14 on June 16.
Aegon Ltd. (AEG)
Aegon is a Dutch insurance company that offers insurance, savings, pension, and investment products and services around the world. Analyst Alex Goh says Aegon management is focusing on extracting capital from its non-core financial assets segment and investing in strategic assets that generate attractive returns. Goh says Aegon is undervalued relative to peers, trading at only about 1.1 times book value. He says Aegon is generating impressive third-party net deposit growth, which helps improve financial visibility. Goh projects earnings per share will double in 2025. CFRA has a “buy” rating and $7.90 price target for AEG stock, which closed at $6.82 on June 16.
Host Hotels & Resorts Inc. (HST)
Host Hotels & Resorts is a hotel and resort REIT that owns luxury hotels in North and South America. Schmidt says stable economic conditions will support lodging demand in 2025. He says local travel demand may remain soft for the time being, but group and business travel demand are strong. Schmidt says Host is a good defensive investment in the lodging industry because its luxury properties are relatively recession-resistant and its balance sheet is pristine. It also has the financial flexibility to make opportunistic acquisitions. CFRA has a “buy” rating and $17 price target for HST stock, which closed at $15.64 on June 16.
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10 Best Cheap Dividend Stocks to Buy Under $20 originally appeared on usnews.com
Update 06/17/25: This story was published at an earlier date and has been updated with new information.
