The S&P 500 has been falling recently, as have many top dividend stocks. While that may be bad news for people who own those stocks, for investors looking to buy or to add to their positions, that can be great news, as it means more deals are available in the markets these days.
Even if the short-term outlook may not look all that great for the markets or the economy as a whole, it can still make sense to invest right now and hold for the long haul. Three excellent dividend stocks that look cheap this month and that offer high yields are AT&T (NYSE:T), Novo Nordisk (NYSE:NVO), and Vici Properties (NYSE:VICI). Here’s why these are stocks worth buying right now.
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AT&T
Telecom giant AT&T offers a fairly high yield of 5.2%, which is more than four times the S&P 500 average of only 1.1%. That’s a ton more dividend income for investors who crave recurring payouts.
This year hasn’t been a great one for the telecom stock, as it’s down 14%, and a big reason for that may be due to concerns that Space Exploration Technologies Corp will disrupt its operations with its aspiration of Starlink becoming a major mobile carrier in the near future.
Those concerns, however, I believe, are overblown. AT&T is still performing exceptionally well, and it could take years before Starlink becomes a significant rival. Even then, AT&T has been no stranger to competition over the years and has continued to do well. Selling the stock based on those fears is premature, to say the least. Buying this top telecom stock right now, while it’s trading near its 52-week low, could be a great move.
Novo Nordisk
Another struggling dividend stock that looks enticing to buy on the dip right now is Novo Nordisk, the drugmaker that makes Ozempic and Wegovy. Its GLP-1 drugs are highly popular, but rising competition with longtime rival Eli Lilly has hurt the company’s growth rate and its share price. This year, it’s down 20% thus far.
However, the business is by no means doomed, and a recent trial showed that a higher dose version of Wegovy resulted in some patients losing up to 28% of their weight, putting it in the same ballpark as Zepbound — Eli Lilly’s leading weight loss drug.
While the market has written off Novo Nordisk and remains bearish on it, I believe it’s become an incredibly underrated, dirt cheap stock to buy not only for its growth potential but also its dividend. Due to the stock’s 30% decline over the past five years, it’s now yielding 4.4%. Meanwhile, the healthcare stock trades at just 10 times its trailing earnings.
