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3 Ultra-Cheap Dividend Stocks You Can Buy Right Now

3 Ultra-Cheap Dividend Stocks You Can Buy Right Now

Income investors can get burned just as badly — if not worse — than growth stock fans. Yield chasers can be lulled into complacency by chunky quarterly payouts, only to realize that the basement floor can crack when the distributions aren’t sustainable.

There are still plenty of stocks shelling out modest dividends that seem to be priced too compellingly to ignore at this point. Let’s go over Starbucks (NASDAQ: SBUX), GameStop (NYSE: GME), and AT&T (NYSE: T), three stocks that are standing out as intriguing investments after recent sell-offs.

Starbucks: 2.5% yield

The lowest-yielding stock in this article may be the one with most to prove. A lot of things have gone wrong for leading premium coffeehouse chain Starbucks lately, driving the stock to a 34-month low. Frappuccino sales have declined this year as cheaper rival offerings and health concerns weigh on the ice-blended beverages. Comps growth continues to decelerate, down to 2% in its two most recent quarters, with Starbucks now eyeing a 1% uptick for the current quarter.

The cherry on top of this whipped-cream-topped frosty beverage is that its 50-year-old CFO stunned investors last week by announcing that he would be retiring. The good news is that Starbucks hasn’t been this cheap in a long time. The stock is now selling for 20 times this year’s projected earnings and 18 times next year’s target. These aren’t cheap multiples for out-of-favor entities, but it’s a steal for an iconic consumer-facing juggernaut of a brand.

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