3 Dirt Cheap Dividend Stocks to Buy During the Stock Market Sell-Off

Group 1: American Express - American Express is down 15.1% year-to-date, presenting a potential buying opportunity with a price-to-earnings ratio of 18.1 [4] - The company has a diversified customer base, with U.S. consumer services accounting for 38% of worldwide network volumes [6] - American Express has consistently raised its dividend and has never cut it since 1977, returning $7.9 billion to shareholders in fiscal 2024 [10][11] - The company has outperformed Visa, Mastercard, and the S&P 500 over the last five years, indicating strong growth potential [8][12] Group 2: International Paper - International Paper offers a nearly 4% dividend yield and operates in a mature industry with growth prospects from e-commerce packaging [13] - The acquisition of DS Smith positions the company as a global player in the packaging market, aiming for earnings growth through synergies [14][15] - Management projects a long-term growth rate of 3% to 4% in North America and Europe, with potential free cash flow of $2 billion to $2.5 billion by 2027 [16] Group 3: NextEra Energy - NextEra Energy stock is down 7.3% year-to-date, but offers a 3.4% forward-yielding dividend, making it an attractive investment opportunity [17] - The company is the largest electric utility by market cap and has a significant focus on renewable energy, with 40 GW of solar, wind, and energy storage [18] - Despite concerns over tariffs affecting renewable energy projects, NextEra Energy is a regulated utility, ensuring stable returns [20] - The company has maintained an average payout ratio of 81% over the past five years, reflecting a conservative approach to dividends [21] - Shares are currently trading at 10.6 times operating cash flow, below their five-year average multiple of 15, indicating a favorable buying opportunity [23]