2 Incredibly Cheap Dividend Stocks to Buy Now

Why It Matters

High‑yield, low‑multiple stocks like EPD and BMY provide income‑focused investors with defensive exposure while offering upside potential as markets re‑price sector fundamentals.

Key Takeaways

• Enterprise Products yields ~6% dividend, forward P/E ~13
• Midstream energy offers stable cash flow, supports dividend growth
• Bristol Myers trades below 10 forward P/E, 4.2% yield
• Pharma transformation hinges on Opdivo growth, offsetting legacy decline
• Both stocks appear undervalued versus S&P 500 averages

Pulse Analysis

Dividend‑focused investors constantly seek the sweet spot where yield, valuation, and sustainability intersect. In a low‑interest‑rate environment, a 5‑6% payout from a mid‑stream energy firm like Enterprise Products Partners stands out, especially when its forward price‑to‑earnings ratio hovers in the low‑teens. The sector’s reliance on long‑term transportation contracts cushions earnings from commodity price swings, delivering predictable cash flow that can fund both capital expansion and steady dividend growth. This defensive profile makes EPD an attractive hedge against market volatility while still offering upside as infrastructure spending accelerates.

Enterprise Products’ balance sheet reflects a robust operating model: net margins above 10% and cash flow sufficient to support $2.5‑$2.9 billion of annual capital expenditures. These investments aim to broaden its fee‑based revenue base, targeting higher‑margin assets such as deep‑water terminals and storage facilities. However, investors should monitor regulatory risk, exposure to natural‑gas price fluctuations, and the company’s leverage levels, which can amplify earnings volatility during macro‑economic downturns. The forward P/E of roughly 13 suggests the market has begun to price in these risks, yet the stock remains considerably cheaper than the S&P 500 average, offering a margin of safety for income seekers.

Bristol Myers Squibb illustrates how a legacy pharmaceutical giant can reinvent its dividend narrative through pipeline innovation. While blockbuster drugs Revlimid and Eliquis face patent expirations, the firm’s oncology franchise—anchored by Opdivo—delivered a 16% year‑over‑year revenue surge in Q4 2025. This growth underpins a 4.2% dividend and a forward P/E under 10, positioning BMY as a rare cheap‑priced pharma stock with a solid yield. Investors must weigh the risk of ongoing R&D expenditures against the potential of new approvals, but the company’s strong gross margin (over 65%) and disciplined capital allocation suggest dividend sustainability. In a sector where many peers trade at premium multiples, BMY offers a compelling blend of income and upside for long‑term portfolios.

2 Incredibly Cheap Dividend Stocks to Buy Now

By Eric Volkman · Feb 19, 2026 at 4:41 PM EST

Key Points

• A crucial oil and gas infrastructure company has a stock with a 5.9% dividend yield.

• A veteran pharmaceutical giant pays out a dividend yielding a generous 4.2%.

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Enterprise Products Partners (NYSE: EPD)

Enterprise Products Partners is a large mid‑stream energy company that operates an enviable portfolio of assets, from pipelines to storage facilities to deep‑water docks.

All things being equal, the mid‑stream segment of the energy sector is steadier than the upstream (exploration and production) and downstream (retail) segments. That’s because it tends to operate on long‑term contracts and facilitates the movement of energy assets, rather than extracting them from the earth or selling their end products.

With that advantage, Enterprise has been consistently profitable, with net margins generally coming in a bit over 10%. Strong operating cash flow leaves plenty of room not only for dividend payments, but also for significant capital expenditures to help widen the company’s revenue base. This year, for instance, it will spend anywhere from $2.5 billion to $2.9 billion for this purpose.

Despite a recent rally in Enterprise’s share price, the stock is still surprisingly inexpensive and trades at a forward P/E just above 13. That works out to a dividend yield of just under 5.9%, which is more than five times the average of all S&P 500 index components.

Key Data

| Metric | Value |

|--------|-------|

| Market Cap | $78 B |

| Current Price (Feb 19, 2026) | $36.18 |

| Dividend Yield | 6.02% |

| Day’s Range | $35.85 – $36.35 |

| 52‑week Range | $27.77 – $37.31 |

| Volume | 3.9 M |

| Gross Margin | 13.52% |

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Bristol Myers Squibb (NYSE: BMY)

A business transformation is never easy, especially in the capital‑intensive pharmaceutical industry. For years, Bristol Myers lived well on a pair of blockbuster drugs—multiple‑myeloma treatment Revlimid and blood‑thinner Eliquis. Yet Eliquis is fast approaching its patent cliff, and last month Revlimid tumbled off it entirely.

These days, the two medications are bundled into the company’s “legacy” portfolio—its collection of drugs that are no longer the revenue‑increasing powerhouses they once were. At the same time, it is expanding its “growth” portfolio—anchored by cancer treatment Opdivo—of drugs shielded by patents or other legal protections. In the fourth quarter of 2025, the latter’s revenue rose 16% year over year.

Bristol Myers’ shares remain a bargain play on that yet‑to‑be‑completed transformation; its forward P/E sits below 10. That is exceptionally cheap for a big‑pharma player with a growing collection of blockbuster drugs and a history of dividend increases, currently yielding a generous 4.2%.

Key Data

| Metric | Value |

|--------|-------|

| Market Cap | $122 B |

| Current Price (Feb 19, 2026) | $60.30 |

| Dividend Yield | 4.17% |

| Day’s Range | $59.23 – $60.36 |

| 52‑week Range | $42.52 – $63.33 |

| Volume | 13 M |

| Gross Margin | 65.89% |

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Should you buy stock in Enterprise Products Partners right now?

Before investing, consider that the Motley Fool Stock Advisor team has identified a list of “10 best stocks” for investors, which does not currently include Enterprise Products Partners. Their historical average return on recommendations is 899% versus 194% for the S&P 500.

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About the Author

Eric Volkman is a contributing Motley Fool finance and stock‑market analyst. Previously, he was an equities analyst at European investment bank Raiffeisen Capital and Investment. He has been a freelance finance writer since 1995 and studied at Susquehanna University.