3 Absurdly Cheap Dividend Stocks to Buy for Less Than $100

Buying dividend stocks at low prices can have two positive benefits. The first is that if you're buying low, the yield can be higher than normal. It can provide you with some high dividend income right out of the gate. Second, it can set you up for some good returns down the road, which isn't always the case with dividend stocks; investors often seek them out for their stability and recurring income rather than their potential to generate high returns.

Three dividend stocks that you can buy today for less than $100, which are cheap with respect to earnings and can provide above-average yields, are Cisco Systems (NASDAQ: CSCO), AT&T (NYSE: T), and JD.com (NASDAQ: JD). Here's why they can prove to be good buys in the long haul.

1. Cisco Systems

One top tech company that pays a dividend is Cisco, known for its IT infrastructure, including switches, routers, and firewalls. It's a relatively safe and not-so-volatile tech stock to own. At the same time, it can benefit from long-term growth opportunities as businesses upgrade their capabilities. Cisco offers many artificial intelligence (AI)-powered solutions that can ensure companies are well equipped to handle the opportunities and risks that come with AI deployment.

While it has some encouraging growth opportunities, it's trading at a forward price-to-earnings (P/E) multiple of just under 17. That's well below the 27 times trailing P/E it's at today, which suggests that analysts are expecting some strong earnings growth from the business in the year ahead.

That's a cheap valuation for a stock that already offers a relatively high yield of 2.3% -- a full percentage point higher than the S&P 500 average of 1.2%. Cisco's stock trades at around $71 today, and it can make for an underrated AI investment.

2. AT&T

Investors can collect an even higher yield from telecom giant AT&T, which currently pays 4.4% in dividends. And that's with the yield coming down over the past year as the share price has been rising -- it's up 17% during the past 12 months.

AT&T has been winning over investors of late, demonstrating that is indeed a safe and good investment to hold. It has been steadily growing as its business reported 405,000 postpaid phone net adds during its most recent quarter, which ended on Sept. 30. Free cash flow of $4.9 billion also continued to improve, rising from $4.6 billion a year ago. Meanwhile, the company continues to grow and expand its 5G and fiber network, which can lead to better financial performance and returns for investors in the future.

The stock currently trades at a forward P/E of just 12, and it's still an attractive buy today, with its share price right around $25. That's not a bad price to pay for a high-yielding stock with solid fundamentals and encouraging growth prospects.

3. JD.com

Rounding out this list is JD.com, a leading Chinese-based retail company that offers a variety of consumer products. It's trading at around $34 per share, and its returns have been flat this year. But with the stock trading at a forward P/E of less than 11, it's the cheapest stock on this list.

It yields 3% and can provide investors with a decent payout alongside some good geographical diversification into a top market like China. In its most recent quarter, which ended on June 30, the company's revenue rose by more than 22% to just under $50 billion. The company says it saw "robust growth in user traffic" as it appears to be doing well.

With a modest valuation, JD.com, the top retailer in China, is in an excellent position to provide investors with a good mix of growth opportunities and plenty of dividend income in the long run.

David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Cisco Systems. The Motley Fool recommends JD.com. The Motley Fool has a disclosure policy.