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. Dividends from high-quality stocks can also be a reliable source of income during economic downturns.
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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 to buy for less than $20, according to CFRA:
| Stock | Dividend yield | Implied upside* |
| Infosys Ltd. (ticker: INFY) | 2.9% | 7% |
| NatWest Group PLC (NWG) | 4.0% | 10% |
| Energy Transfer LP (ET) | 8.0% | 14% |
| Vodafone Group PLC (VOD) | 4.2% | 4% |
| Huntington Bancshares Inc. (HBAN) | 3.7% | 18% |
| Blue Owl Capital Inc. (OWL) | 5.4% | 20% |
| Aegon Ltd. (AEG) | 5.6% | 20% |
| Host Hotels & Resorts Inc. (HST) | 4.6% | 15% |
| ARC Resources Ltd. (OTC: AETUF) | 2.8% | 8% |
| Albertsons Cos. Inc. (ACI) | 3.5% | 33% |
*From Dec. 9 close.
Infosys Ltd. (INFY)
Infosys is an Indian company that provides a number of information technology consulting services around the world, including business consulting, engineering, technology and outsourcing services. Analyst Firdaus Ibrahim says Infosys generates impressive free cash flow and has demonstrated a commitment to disciplined operations. In addition, Ibrahim says Infosys has embraced artificial intelligence technology and is completely transforming its business model accordingly. He says elongated client decision timelines and macroeconomic uncertainty will be headwinds in the near term, but Ibrahim anticipates a rebound in tech spending in fiscal 2027. CFRA has a “buy” rating and $19 price target for INFY stock, which closed at $17.75 on Dec. 9.
NatWest Group PLC (NWG)
NatWest is a U.K. retail and commercial bank and financial services provider. Ibrahim says NatWest’s cost discipline, strong earnings momentum and aggressive capital return program will create value for long-term investors. He says the company’s improving efficiency has led to positive earnings trends and a decline in its cost-to-income ratio to 45.8%. Meanwhile, the company’s robust cash flow means it can support its dividends and share buybacks while maintaining a dividend payout ratio of less than 50%. Ibrahim projects 5% revenue growth in 2026. CFRA has a “buy” rating and $18 price target for NWG stock, which closed at $16.33 on Dec. 9.
Energy Transfer LP (ET)
Energy Transfer is a midstream U.S. oil and gas infrastructure provider with a focus on liquids logistics. The stock has an 8% dividend yield, the highest on this list. Analyst Stewart Glickman is bullish on Energy Transfer’s positioning in the Gulf of Mexico, and he says the company’s distributable cash per share exceeds its anticipated distributions. Gains in natural gas liquids and crude oil volumes have supported earnings growth this year, and Glickman says rising midstream demand has Energy Transfer well positioned heading into 2026. CFRA has a “buy” rating and $19 price target for ET stock, which closed at $16.67 on Dec. 9.
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 India and Africa. Analyst Adrian Ng says efforts to restructure Vodafone’s portfolio have paid off, making it a much healthier company. The company has completed the first tranche of its buyback program, and Ng says its German business should return to growth in fiscal 2026. Vodafone’s initial fiscal 2026 guidance calls for free cash flow growth, a sign the company’s transformation strategy is paying off. CFRA has a “buy” rating and $13 price target for VOD stock, which closed at $12.50 on Dec. 9.
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 projects full-year revenue growth of 11%, boosted by rising loan deposit balances, falling funding costs and elevated loan growth. In addition, Yokum says positive momentum in payments, capital markets and wealth management will drive significant fee income growth for Huntington. Not only is the bank reporting steady net interest income growth, but margins also expanded slightly in the most recent quarter. CFRA has a “buy” rating and $20 price target for HBAN stock, which closed at $16.99 on Dec. 9.
[Read: 5 Best Cheap Stocks Under $5 to Buy Right Now]
Blue Owl Capital Inc. (OWL)
Blue Owl Capital is an alternative asset management firm that provides attractive financing and capital solutions to investment management firms and their portfolio companies. Analyst Kenneth Leon says his bullish outlook for Blue Owl is based on its strong fundamentals, encouraging long-term growth trajectory and stable business model. In addition, Leon says Blue Owl has opportunities to expand into massive addressable markets, including data centers. Finally, Leon says Blue Owl’s partnership with Voya allows the firm to tap into the lucrative retirement market. CFRA has a “buy” rating and $20 price target for OWL stock, which closed at $16.67 on Dec. 9.
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 is attractively valued, trading at a significant discount to peers based on price-to-book ratio. Goh says Aegon’s stock has performed well, and the company has a track record of impressive execution. He says Aegon is on track to hit its 2025 financial targets and the company’s plan to potentially move its business headquarters to the U.S. could unlock additional growth levers. CFRA has a “buy” rating and $9.50 price target for AEG stock, which closed at $7.89 on Dec. 9.
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 improving business and group travel spending and stable economic conditions have supported lodging demand in 2025. However, if the economy softens in 2026, Schmidt says Host may be immune to the downturn given its luxury destinations tend to be more resilient to slowdowns in consumer spending. He says Host has the best balance sheet among all lodging REITs. CFRA has a “buy” rating and $20 price target for HST stock, which closed at $17.45 on Dec. 9.
ARC Resources Ltd. (OTC: AETUF)
ARC Resources is one of Canada’s largest producers of natural gas, condensate and crude oil. Analyst Jed Lemen says ARC’s free cash flow and production growth outlook make it an attractive investment opportunity heading into 2026. Lemen says ARC has dialed back production in the second half of 2025 in response to soft gas pricing in Western Canada, but the company’s cash flow has remained resilient. He says ARC has averaged 6.3% compound annual production growth since it acquired Seven Generations back in 2021. CFRA has a “buy” rating and $20.90 price target for AETUF stock, which closed at $19.32 on Dec. 9.
Albertsons Cos. Inc. (ACI)
Albertsons Cos. is one of the largest U.S. food retailers, and its leading store brands include Albertsons, Safeway and Vons. In 2024, U.S. regulators blocked a potential merger between Albertsons and Kroger on antitrust grounds. Analyst Arun Sundaram says the blocked merger has forced Albertsons to refocus on its business by investing in wages, promotions, store remodels and technology upgrades. Sundaram says Albertsons will likely return to its long-term financial goal of at least 2% identical sales growth fueled by digital revenue and pharmacy sales. CFRA has a “buy” rating and $23 price target for ACI stock, which closed at $17.23 on Dec. 9.
[SEE: 9 Highest Dividend-Paying Stocks in the S&P 500]
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10 Best Cheap Dividend Stocks to Buy Under $20 originally appeared on usnews.com
Update 12/10/25: This story was published at an earlier date and has been updated with new information.
