The main stock market indices reached all-time highs. The situation may seem like it’s too hard to find bargain dividend stocks.
Of course, most dividend stocks are pricey, yet there are some bargains you can find. AbbVie (NYSE: ABBV), Gilead Sciences (NASDAQ: GILD), and Verizon Communications (NYSE: VZ) are three dividend stocks currently on sale.
The first stock you can purchase is AbbVie. The company has a great pedigree. It is a Dividend Aristocrat with dividend increases during 48 years in a row, including the period as a part of Abbott Labs.
After separating from Abbot in 2013, AbbVie has boosted its dividend payout by 168%. Its dividend now yields 5.5%.
The Reasons These Dividend Stocks Are on a Discount
AbbVie shares trade at a little over nine times expected earnings, which is below the valuation of most big pharma stocks. It’s cheap because investors are worried about the company’s chances of growth with its top-selling drug, Humira. The drug faces biosimilar competition in Europe and in the United States on the way in 2023.
A key part of that strategy of the company is the launch of new drugs. This year, AbbVie rolled out two immunology drugs – Rinvoq and Skyrizi, that should become huge blockbusters soon.
Gilead Sciences doesn’t have an impressive dividend track record of AbbVie, but yield now stands at almost 3.9%.
The company’s HCV drugs cured so many patients that the market shrank. On the other hand, competition increased as well, mainly from AbbVie. Meanwhile, Gilead continues to dominate the HIV market. Its Biktarvy seems to become the best-selling HIV drug of all time.
The third stock you can buy is the telecommunications giant Verizon. The company has gained its dividend for 13 consecutive years and its dividend currently yields 4.1%.
Verizon isn’t as cheap as AbbVie and Gilead, still, its valuation appears to be quite attractive. The company’s shares trade at 12 times expected earnings.
The reason Verizon is on sale is the intense competition in the telecom industry. Verizon and its competitors are cutting prices to retain and attract customers.