3 Absurdly Cheap Dividend Stocks to Buy With $1,000 Right Now

Not every cheap stock is necessarily one worth owning. If you can find the right high-quality, high-yield tickers that are only temporarily beaten down, however, cheap stocks are actually bargains just waiting to be bought.

Here's a rundown of three dirt cheap dividend payers most investors are simply overlooking. That spells opportunity for you.

Novo Nordisk

It's not too difficult to figure out why Novo Nordisk (NYSE: NVO) shares are down so much from their 2024 peak. The GLP-1 weight-loss drug race that it helped start has since turned incredibly competitive, so much so that Novo's now losing market share to rival Eli Lilly (NYSE: LLY) (and others) within a business it largely built, forcing price cuts. Investors are also concerned about the limited expansion of Wegovy's label in this environment.

More recently, Novo's decision to file a lawsuit against Lilly (claiming that its top competitor's GLP-1 drug's advertising is misleading) may be valid, but it also suggests a certain degree of concerning desperation. Never even mind the fact that 2026 is now being seen as a "reset" year far sooner than a reset should have been necessary for the company.

However, with the stock now down more than 60% from its mid-2024 high and still within sight of a recently reached five-year low -- and priced at less than 12 times its trailing earnings -- the sellers have arguably overshot their target. They've priced in all of these problems, and then some, without factoring in the fact that Wegovy is still a powerful brand in all of its present and future forms.

That's not the crux of the reason to consider stepping into a position in NVO here and now, however. Rather, the top reason to take a closer look at the beaten-down name at this time is its dividend yield, which currently stands at a little over 3.6% on a forward-looking basis. At the very least, the cash flow supporting these dividend payments will remain intact while the company works through its reset and continues working on the 32 drug trials it's currently got underway, nine of which are now in phase 3.

PepsiCo

Novo Nordisk isn't the only attractive dividend name currently dancing with a new 52-week low. Snack food and beverage powerhouse PepsiCo's (NASDAQ: PEP) shares are in a similar situation. The stock's down 20% from its early February peak, dragging its forward-looking price-to-earnings ratio down to a multiyear low of less than 16, and pumping its forward-looking dividend yield up to 4.4%.

This weakness makes superficial sense. Organic revenue growth remains at a tepid 2.5% pace, bogged down by its North American food business. Cost and health concerns are both contributing factors to this headwind. Meanwhile, last quarter's core operating margin of 16.8% was down 40 basis points from the year-ago comparison, as the company is using price cuts to prop up demand however and whenever it can. Several analysts lowered their price targets on PEP following the release of its Q2 results as well. Investors are understandably nervous.

Image source: Getty Images.

There's nothing PepsiCo is going through now that it hasn't been through and survived before. Although its stock doesn't necessarily recover very quickly from these sorts of setbacks (since the economic underpinnings are also slow-moving), it's now 20% below February's high and down more than 30% from its 2023 peak. This recent weakness is a great opportunity to step into a long-term position in a quality blue chip.

It's a quality blue chip, by the way, that's now raised its dividend for 54 consecutive years. That streak isn't likely to end anytime soon.

Accenture

Last but not least, add Ireland-based Accenture Plc (NYSE: ACN) to your list of cheap dividend stocks to buy if you've got $1,000 -- or any other amount -- you're looking to put to work generating income.

It's not a household name, although there's a good chance you or someone in your household benefits from its work. Accenture offers a number of specialized business services, ranging from cybersecurity to supply chain optimization to technology overhauls to risk management. It's serving markets like banks, travel, retail, healthcare, utilities, and more. The company did $69.7 billion in sales last fiscal year, up 7.4% year over year, and is likely to report comparable growth again for the fiscal year ending in August.

Unfortunately, this growth wasn't enough to stave off the 64% setback this stock has suffered since February of last year. You can probably guess why. Investors are fearful that artificial intelligence will eventually be able to replicate much of what this company brings to the table -- and perhaps it will.

As time marches on, however, institutions are learning that AI can't do everything, and too much of what it can do, it doesn't do particularly well. Companies still need plenty of actual people to make experienced judgment calls and apply good common sense that artificial intelligence platforms often just don't have. This is good news for Accenture, and by extension, for its shareholders. It's just not yet evident in the form of a rebound in the stock.

That doesn't mean you have time to wait if you're interested, though. Priced at only 10 times this year's expected per-share profit and with a forward-looking dividend yield of 4.6%, this ticker's apt to fall back into favor sooner rather than later.

Analysts think so, anyway. Their consensus price target of $175.41 is 25% above the stock's present price.

James Brumley has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Accenture Plc, Eli Lilly, and Novo Nordisk. The Motley Fool recommends the following options: long January 2028 $260 calls on Accenture Plc and short January 2028 $280 calls on Accenture Plc. The Motley Fool has a disclosure policy.