3 Dirt Cheap Dividend Stocks to Buy and Hold
The Motley Fool·2025-12-02 15:00

Core Insights - The article highlights three overlooked companies that are experiencing growth and offer dividend payments, suggesting potential investment opportunities as they may gain more attention from investors. Group 1: Cisco Systems (CSCO) - Cisco has seen an 8% year-over-year revenue increase, with a significant focus on its AI segment, which reported orders of $1.3 billion, indicating strong growth potential [3][4]. - The stock is currently priced at $76.06, with a market cap of $300 billion and a P/E ratio approaching 30, suggesting it may be undervalued despite moderate revenue growth [5][6]. - Cisco's dividend yield is 2.14%, providing investors with cash flow while waiting for stock price appreciation driven by AI demand [7]. Group 2: Digital Realty Trust (DLR) - Digital Realty Trust, a REIT, serves over 5,000 customers and has experienced an 11% year-over-year revenue growth and a 32% increase in net income [8][9]. - Despite a 10% decline in stock price this year, the company is positioned to benefit from the expanding AI infrastructure market [10][11]. - The current stock price is $156.22, with a market cap of $54 billion and a dividend yield of 3.12%, offering solid returns while waiting for stock recovery [10][11]. Group 3: Charles Schwab (SCHW) - Charles Schwab has $11.6 trillion in assets under management, reflecting a 17% increase year-over-year, alongside a 30% rise in daily average trade volume [12][13]. - The company reported a 27% year-over-year revenue increase and a 67% surge in net income, indicating strong financial performance [13][14]. - The stock is currently priced at $93.01, with a market cap of $165 billion and a dividend yield of 1.17%, which has seen an 8% increase in its quarterly dividend this year [14][15].