Group 1 - The Kraft Heinz Company (KHC) is recognized as one of the 13 incredibly cheap dividend stocks to invest in, highlighting its attractiveness for income-focused investors [1] - KHC is a global producer and distributor of food and beverages, with a diverse product range including cheese, sauces, cold cuts, and ready-to-eat meals, featuring well-known brands and private-label offerings [2] - The company has prioritized three main strategies: expanding in emerging markets, managing raw material and packaging costs, and enhancing brand strength through its trademark portfolio, which relies on effective marketing and supply chain operations [3] Group 2 - KHC offers a quarterly dividend of $0.40 per share, resulting in a dividend yield of 6.06% as of September 19, making it one of the best dividend stocks available [4]

Core Viewpoint - Chubb Limited (NYSE:CB) is recognized as a stable and undervalued dividend stock, particularly appealing in volatile market conditions due to its strong performance and consistent dividend history [1][2]. Company Overview - Chubb Limited, headquartered in Zurich, Switzerland, is the largest publicly traded insurer globally, providing property, casualty, health, and supplemental insurance. The company was formerly known as ACE Limited until its acquisition of Chubb in 2016 [2]. - The company has been expanding internationally, with overseas markets contributing 43% of its revenue in 2024 [3]. Financial Performance - Chubb Limited's consolidated net premiums have shown steady growth over the past six years, despite facing challenges such as the COVID-19 pandemic, inflation, and geopolitical tensions [4]. - The primary revenue source remains its core property and casualty (P&C) insurance policies [4]. Dividend History - Chubb Limited has a robust dividend history, having increased its payouts for 32 consecutive years. The current quarterly dividend stands at $0.97 per share, resulting in a dividend yield of 1.42% as of September 19 [5].

Core Viewpoint - Despite the strong performance of the S&P 500 index, Coca-Cola and Eli Lilly have underperformed, presenting attractive buying opportunities for long-term dividend-seeking investors [1][2]. Group 1: Coca-Cola - Coca-Cola operates in over 200 countries and has seen a 5% revenue growth in the second quarter, excluding foreign currency fluctuations and acquisitions/divestitures [4]. - The revenue increase was driven by higher prices and a changing product mix, contributing 6 percentage points, while lower volume subtracted 1 percentage point [5]. - Coca-Cola has a 3.1% dividend yield, significantly higher than the S&P 500's 1.2%, and a payout ratio of 71%, indicating strong dividend sustainability [7][6]. Group 2: Eli Lilly - Eli Lilly generates significant revenue from three key drugs, which account for 65% of its $15.6 billion second-quarter revenue, with growth rates ranging from 12% to 172% [8]. - The company reported a 38% revenue growth in the second quarter and a 61% increase in adjusted earnings per share to $6.31, with management raising its 2025 revenue guidance to over 35% growth [9]. - Eli Lilly has a 0.8% dividend yield and a 37% payout ratio, with consistent annual dividend increases since 2015, indicating strong earnings coverage for dividends [10].

Group 1 - Becton, Dickinson and Company (BDX) is recognized as a medical technology company currently undergoing a turnaround due to past challenges, including strategic missteps and a significant product recall [2][3] - The company has acquired the critical care product group from Edwards Lifesciences to enhance its core business and plans to spin off its biosciences and diagnostic solutions division, which is set to be purchased by Waters in a deal expected to close by 2026 [3] - BDX has a strong dividend history, with a 53-year track record of consistent payments, offering a quarterly dividend of $1.04 per share and a dividend yield of 2.22% as of September 19 [5] Group 2 - The planned spinoff of the biosciences and diagnostic solutions division is projected to be accretive to earnings in its first year, suggesting that the dividend should remain stable throughout the transition [4]

Group 1 - A. O. Smith Corporation (NYSE:AOS) is recognized as one of the largest producers of residential and commercial water heaters, boilers, and water treatment systems in North America [2][3] - The company is focused on enhancing its market position in North America, advancing energy-efficient technologies, and expanding its international presence, particularly in China and India [3] - A. O. Smith has a strong track record with 32 consecutive years of dividend growth, currently offering a quarterly dividend of $0.34 per share and a dividend yield of 1.86% as of September 19 [4] Group 2 - The company's extensive distribution network is supported by long-standing partnerships, including a significant relationship with Lowe's [2] - Long-term performance is contingent on controlling raw material costs, broadening the product lineup with innovations like high-efficiency water heaters, and maintaining strong distribution ties both domestically and internationally [3]

Group 1 - American Express Company (NYSE:AXP) is recognized as one of the 13 incredibly cheap dividend stocks to invest in [1] - The company has established a significant customer base and operates a consistently profitable and expanding business [2] - Over the last five years, revenue has increased from approximately $38 billion to over $74 billion, while net income has more than tripled from $3.1 billion to just over $10 billion [3] Group 2 - American Express has a strong history of paying dividends, currently offering a quarterly dividend of $0.82, resulting in a dividend yield of 0.96% as of September 19 [4]

Applied Materials, Inc. (NASDAQ:AMAT) is included among the 13 Incredibly Cheap Dividend Stocks to Invest in. Why Applied Materials (AMAT) Deserves a Spot Among Cheap Dividend Stocks Applied Materials, Inc. (NASDAQ:AMAT) supplies equipment, software, and services that help manufacturers produce semiconductors and display panels. Its core offerings include systems for wafer fabrication, tools for display production, and a wide range of engineering support. Applied Materials, Inc. (NASDAQ:AMAT)’s performa ...

Core Viewpoint - Selecting dividend stocks should not solely focus on high yields, as this may lead to risks of dividend cuts if the yield is unsustainable for the company [1][13]. Group 1: Dividend Reliability - Companies like Pfizer, despite having a high yield of 7.2%, may not be as reliable as others like Merck, Omega Healthcare, and Johnson & Johnson, which have demonstrated consistent dividend support [2][4]. - Merck has a history of maintaining its dividend even during challenging times, unlike Pfizer, which cut its dividend in 2009 after acquiring Wyeth [5]. - Omega Healthcare, a REIT focused on senior housing, did not cut its dividend during the COVID-19 pandemic, showcasing its resilience [7][8]. Group 2: Growth Potential - Omega Healthcare is expected to see growth, with an 8% year-over-year increase in adjusted funds from operations (FFO) anticipated due to new asset investments [10]. - Johnson & Johnson, known as a Dividend King for over 60 years of annual dividend increases, offers a reliable dividend, albeit with a lower yield of around 3% [11][12]. Group 3: Investment Considerations - Investors should prioritize dividend consistency over high yields when selecting dividend stocks, as demonstrated by the comparisons among Pfizer, Merck, Omega, and Johnson & Johnson [13].

Group 1: ConocoPhillips - ConocoPhillips has a diverse portfolio in the oil and gas industry, with a cost of supply below $40 per barrel, enabling strong cash flow generation [4] - The company is entering a growth phase with investments in long-cycle capital projects, including three LNG export facilities [5] - A $7 billion investment in the Willow project in Alaska is expected to start in 2029, with an anticipated $7 billion of incremental annual free cash flow by 2029 [6] - ConocoPhillips aims to deliver dividend growth within the top 25% of S&P 500 companies, supported by robust free cash flow and share repurchases [7][8] - The company has increased its dividend payout annually for nearly a decade [8] Group 2: Kinder Morgan - Kinder Morgan is one of the largest energy infrastructure companies in the U.S., with a significant portion of cash flow from stable contracts [9] - The company pays out less than half of its cash flow in dividends, maintaining a 4.2% yield while retaining funds for expansion [10] - Kinder Morgan has $9.3 billion in growth capital projects, primarily focused on new natural gas pipelines to meet rising demand [10] - Projects are expected to be operational by the second quarter of 2030, providing visibility into future growth and supporting continued dividend increases [11] - The company has a strong balance sheet, allowing for flexibility in making acquisitions to enhance dividend growth [12] Group 3: Dividend Growth Outlook - Both ConocoPhillips and Kinder Morgan have clear growth catalysts that support sustained dividend increases over the next several years, making them ideal long-term dividend stocks [13]

Group 1 - Stanley Black & Decker, Inc. (NYSE:SWK) is recognized as one of the 13 Best High Dividend Stocks to Buy Under $100 [1] - The company is undergoing a significant transformation, having achieved $1.7 billion of a planned $2 billion cost-cutting program, which has improved gross margins to 31.2%, an increase of 1,200 basis points from the lowest point [2] - The Tools & Outdoor division accounts for approximately 87% of total revenue, while the Engineered Fastening unit serves industries such as aerospace and automotive [3] Group 2 - Stanley Black & Decker has a strong dividend track record, having paid dividends without interruption for 148 years, and recently announced a 1.2% increase in its quarterly dividend to $0.83 per share, marking the 59th consecutive year of dividend growth [4] - The stock currently has a dividend yield of 4.18% as of September 18 [4]