Any retirement portfolio should have some quality dividend stocks because these types of stocks usually have a solid business plan that allows them to pay shareholders back in the form of dividends on a regular basis. In addition, dividend stocks provide a volatile market with a downside hedge.
Many individuals that invest in dividend stocks hold them for a long period of time, and this makes the market less volatile and reduces day trading.
Another inciting factor associated with dividend stocks is that they can be reinvested and shareholders can acquire more compounded gains over time.
That being said, let’s take a closer look at three inexpensive dividend stocks you may consider buying right now:
Union Pacific (NYSE:UNP)
You may not find railroads to be an exciting investment opportunity, but this industry is known to have a predictable flow of cash and strong pricing power.
Railroads, like Union Pacific (NYSE:UNP) see their bottom and top lines continue to expand and this may be due to fuel prices. Railroads can move more goods at a lower cost than other types of transportation providers. UNP, in particular, has been investing in new railcars and locomotives to improve fuel efficiency. Thanks to the low fuel prices, this company was able to increase their profits by 27% from the previous year.
This stock is currently trading at $108.31 a share and they have a current yield of two percent that income investors may find very attractive.
The pharmaceutical arena has lots of dividend stocks and if you search, you can find a great bargain. But you don’t have to spend your time searching because Novartis (NYSE:NVS) pays close to a three percent dividend and they are currently priced under $99.
Like many big pharmaceutical stocks, Novartis (NYSE:NVS) is always seeking and finding new ways to grow the company – mainly through acquisitions.
They recently made a swap with GlaxoSmithKline (NYSE: GSK) and according to the terms of the agreement, GSK will get the vaccine portion of GlaxoSmithKline (NYSE: GSK) in exchange for seven billion dollars and Novartis (NYSE:NVS) will give Glaxo 16 billion dollars for access to their oncology products.
Portland General Electric (NYSE: POR)
Portland General Electric (NYSE: POR) deserves a closer look, especially for income investors that are seeking a cheap stock. They are currently trading at $37.09 a share and is offering shareholders a three percent yield. Not only does this company provide a basic need to people, but their flow of cash is pretty predictable since this type of industry is regulated.
In 2014, net revenue for this company grew to almost two billion dollars, a five percent increase.
The latest project from this company should have investors very excited. This new project will involve more than 266 MW wind farms and a couple of natural gas power plants. Initially, this project is costly, but in the long run, it will benefit companies, the general public and investors that do business with this company