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3 Deeply Discounted Dividend Stocks to Buy Today
The Motley Foolยท2025-03-27 12:17

Group 1: Bristol Myers Squibb - Bristol Myers Squibb is trading at a forward price-to-earnings (P/E) multiple of just 9, significantly lower than the S&P 500 average of 21 [2] - The company faces challenges such as multiple patent cliffs and a high long-term debt of $47.6 billion, compared to cash and marketable securities of $11.2 billion [3] - Despite risks, the company has secured approvals for two potential blockbuster drugs, Cobenfy and Breyanzi, which could generate substantial revenue [4] - The dividend payout ratio is 60%, supporting a 4% yield, making it attractive for dividend-focused investors [5] Group 2: United Parcel Service (UPS) - UPS has seen a 25% decline in stock price over the past year, resulting in a forward P/E multiple of less than 15 [6] - The company reported a profit of $5.8 billion on revenue of $91.1 billion last year, despite struggles in growth [7] - The payout ratio is around 100%, but free cash flow of $6.2 billion exceeds the $5.4 billion paid out in dividends, indicating a safe payout [8] - UPS offers a high yield of 5.7%, making it appealing for income investors [8] Group 3: Dell Technologies - Dell Technologies trades at a low forward P/E multiple of 10, with significant growth opportunities in artificial intelligence (AI) [9] - The server and networking business reported 54% sales growth in the most recent fiscal year [10] - The stock has a 2.2% dividend yield with a modest payout ratio of 28%, allowing for both dividend payments and growth investments [11]