The U.S. economy is likely headed for a slowdown in 2024, and inflation remains elevated. One way for investors to offset the negative impact of inflation is to generate regular income via dividend stocks. Historically, dividends have accounted for about 40% of the total stock market return since 1930, but they have made up more than half of the market's total return during decades in which inflation was high. Fortunately, there are plenty of dividend stocks out there that don't cost an arm and a leg.
Here are nine of the best dividend stocks under $20, according to CFRA:
| Stock | Implied upside over May 17 close | Forward dividend yield |
| Vale SA (ticker: VALE) | 7.8% | 13.5% |
| Energy Transfer LP (ET) | 0.3% | 8% |
| Orange SA (ORAN) | 11.2% | 15.5% |
| Telefonica SA (TEF) | 0.9% | 7.3% |
| Nokia Corp. (NOK) | 15.1% | 3.6% |
| Aegon Ltd. (AEG) | -5.5% | 5% |
| First Horizon Corp. (FHN) | 6.2% | 3.8% |
| Barrick Gold Corp. (GOLD) | 6.2% | 2.2% |
| Host Hotels & Resorts Inc. (HST) | 19.4% | 4.3% |
Vale SA (VALE)
Vale is a Brazilian miner and is one of the world's largest iron ore and nickel producers. Analyst Matthew Miller says Vale is facing ongoing liability concerns related to the 2019 Brumadinho dam disaster in Brazil, but the company has taken meaningful steps to improve safety and reduce the risk of future disasters. Miller says Vale has an impressive cash flow profile and healthy balance sheet, creating opportunity for significant capital returns for shareholders. He says the stock is significantly undervalued relative to its earnings potential. CFRA has a "buy" rating and $14 price target for VALE stock, which closed at $12.99 on May 17.
Energy Transfer LP (ET)
Energy Transfer is a midstream U.S. oil and gas infrastructure provider. The company also has an alternative energy group focused on developing renewable energy technology. Analyst Stewart Glickman says Energy Transfer is positioned to generate distributable cash per share that exceeds its anticipated cash distributions to shareholders. In addition, Glickman says the company's Mont Belvieu, Texas facility positions Energy Transfer to benefit from sizable overseas natural gas liquids demand. Its Crestwood Equity Partners acquisition also adds valuable midstream capacity in the Delaware and Williston basins. CFRA has a "buy" rating and $16 price target for ET stock, which closed at $15.96 on May 17.
Orange SA (ORAN)
Orange is a diversified French telecommunications company. Analyst Adrian Ng says Orange will continue to deal with a challenging regulatory and operating environment for telecommunications companies in Europe, but he says those challenges are more than priced into the stock at its current valuation. Ng says Orange can raise significant capital by monetizing its tower assets, and the company's cost cutting measures will support its core business margins. Ng says the company has demonstrated its commitment to its dividend, reassuring income investors. CFRA has a "buy" rating and $13 price target for ORAN stock, which closed at $11.69 on May 17.
Telefonica SA (TEF)
Spain's Telefonica is another attractive international telecom dividend stock trading under $20. Ng says Telefonica has made several structural changes to its business that have helped it focus core operations, reduce debt and improve its balance sheet. Those changes include acquiring E-Plus in Germany and GVT in Brazil, combining its U.K. telecom assets in a joint venture deal with Liberty Global PLC (LBTYA, LBTYB) and exiting its businesses in Central America. Ng says Telefonica has significant momentum, and the company anticipates positive revenue growth in 2024. CFRA has a "buy" rating and $4.50 price target for TEF stock, which closed at $4.46 on May 17.
Nokia Corp. (NOK)
Nokia is a telecom equipment and digital map data vendor that also licenses intellectual property to third parties. Analyst Keith Snyder says the 5G network upgrade cycle in North America and China is gaining momentum, and the current cycle will be much larger and longer-lasting than previous cycles. Snyder says Nokia management is confident it can regain lost market share and outgrow its industry peers. He says the company has executed well in a difficult environment, including overcoming challenges from inflation and supply chain disruptions. CFRA has a "buy" rating and $4.50 price target for NOK stock, which closed at $3.91 on May 17.
Aegon Ltd. (AEG)
Aegon is a Dutch insurance company that offers insurance, savings, pension, and investment products and services around the world. Analyst Jeff Lye says Aegon's 2024 financial targets are within reach. Lye says the company's strategy of focusing on strategic assets that reduce capital ratio volatility and generate an attractive return on capital will create value for shareholders. He says the company has demonstrated a commitment to capital returns and estimates Aegon will produce an attractive double-digit percentage cash yield over the next year. CFRA has a "buy" rating and $6.50 price target for AEG stock, which closed at $6.88 on May 17.
First Horizon Corp. (FHN)
First Horizon is a U.S. regional bank, providing retail and commercial banking, asset management services and other banking services in Tennessee, Florida and the Carolinas. U.S. regional bank stocks have experienced extreme volatility in the past year as declining bond values shook investor confidence and led to concerns about liquidity and withdrawals. First Horizon experienced extreme selling pressure in 2023, but analyst Alexander Yokum says the bank's net interest margin is finally rebounding, and it is now one of the best-capitalized U.S. regional bank stocks. CFRA has a "buy" rating and $17 price target for FHN stock, which closed at $16.01 on May 17.
Barrick Gold Corp. (GOLD)
Barrick Gold is one of the world's largest gold mining companies. Miller says he is bullish on the prices of gold and copper, which should support Barrick's earnings growth and relative valuation. He says Barrick's focus on its highest quality mines will boost free cash flow per share, and the company has opportunities to unlock significant value in its quality asset portfolio. Miller projects 11% revenue growth in 2024. He says the company's Pueblo Viejo process plant and a new mine in Pakistan will be additional growth catalysts. CFRA has a "buy" rating and $19 price target for GOLD stock, which closed at $17.89 on May 17.
Host Hotels & Resorts Inc. (HST)
Host Hotels & Resorts is a hotel and resort real estate investment trust (REIT) that owns luxury hotels in North and South America. Analyst Michael Elliott says business and group demand for luxury hotels will continue to recover in 2024 but will likely remain below 2019 levels. Elliott says a healthy U.S. consumer will continue to drive discretionary luxury travel spending. In addition, he says Host has the only lodging REIT that has an investment-grade balance sheet, a major plus for risk-averse investors. CFRA has a "buy" rating and $22 price target for HST stock, which closed at $18.42 on May 17.
