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9 Cheap Dividend Stocks with at Least 10 Consecutive Years of Increases


Dividend investing remains a powerful strategy for building long-term wealth, particularly when focusing on companies with a strong history of increasing their payouts. Today, we're diving into 9 cheap dividend stocks, each boasting at least 10 consecutive years of dividend increases. These stocks are at least 15% undervalued relative to one-year target estimates from both my calculations and professional analysts. Included in this list are several Dividend Aristocrats, a Dividend King, and one company that is poised to become an Aristocrat this year.

But before we begin, a disclaimer: Never invest in a stock just because you see it in a video or blog. Stock prices can be unpredictable, and no estimate guarantees future growth. Investing wisely means conducting thorough research into a business's financial statements, trends, risks, competition, and other key factors before making a decision.

1. Albemarle Corp (ALB)

Industry: Chemicals & Lithium Mining
Current Yield: 0.62%
Dividend Growth Streak: 28 years
Fair Value Target: $330 (28% higher than current price)

Albemarle is the world's leading lithium miner, playing a crucial role in industries such as electric vehicles (EVs), pharmaceuticals, and oil & gas. While some analysts believe lithium demand may have peaked, the ongoing global shift toward EVs suggests long-term demand will remain strong.

2. Archer Daniels Midland (ADM)

Industry: Consumer Staples & Agriculture
Current Yield: 2.22%
Dividend Growth Streak: 29 years
Fair Value Target: $100 (23% higher than current price)

ADM processes and distributes agricultural products globally. With food prices remaining elevated, ADM stands to benefit from higher commodity prices. However, falling commodity prices in the future could present a risk to the company’s profitability.

3. Bristol-Myers Squibb (BMY)

Industry: Pharmaceuticals
Current Yield: 3.26%
Dividend Growth Streak: 17 years
Fair Value Target: $85 (21% higher than current price)

BMY has a strong pipeline of drugs, including Eliquis and Plavix, that contribute to its steady revenue. However, concerns about patent expirations and government regulation of drug pricing are key risks to consider.

4. British American Tobacco (BTI)

Industry: Tobacco & Alternative Nicotine Products
Current Yield: 6.8%
Dividend Growth Streak: 22 years
Fair Value Target: $60 (55% higher than current price)

BTI is adapting to changing consumer preferences by developing heat-not-burn tobacco products and alternative nicotine solutions. Regulatory risks, such as New Zealand’s smoke-free legislation, could impact future revenues, but BTI’s strong dividend yield makes it an attractive income play.

5. Chevron (CVX)

Industry: Oil & Gas
Current Yield: 3.7%
Dividend Growth Streak: 35 years
Fair Value Target: $190 (17% higher than current price)

Chevron has significantly outperformed the S&P 500 in recent years, benefiting from rising oil prices and strong cash flows. While oil is a cyclical industry, Chevron’s low payout ratio and consistent dividend hikes make it a solid long-term investment.

6. Enterprise Products Partners (EPD)

Industry: Natural Gas & Pipelines (MLP)
Current Yield: 7.59%
Dividend Growth Streak: 24 years (could become an Aristocrat in 2023)
Fair Value Target: $30 (16% higher than current price)

EPD is a master limited partnership (MLP), meaning investors should understand the tax implications, such as receiving K-1 forms and return of capital distributions. Despite these complexities, EPD’s high yield and solid business model make it attractive for income investors.

7. Medical Properties Trust (MPW)

Industry: Healthcare REIT
Current Yield: 11.26%
Dividend Growth Streak: 10 years
Fair Value Target: $17 (58% higher than current price)

MPW owns and operates hospital properties worldwide, but investor concerns about tenant concentration and short-seller reports have pushed the stock down significantly. Despite this, MPW’s valuation and yield remain compelling, though risk-averse investors should be cautious.

8. National Fuel Gas (NFG)

Industry: Natural Gas Exploration & Distribution
Current Yield: 3.29%
Dividend Growth Streak: 51 years (Dividend King)
Fair Value Target: $75 (29% higher than current price)

NFG has maintained its dividend streak for over a century, demonstrating incredible stability. Its integrated operations in natural gas allow it to navigate commodity price swings better than some competitors.

9. Verizon (VZ)

Industry: Telecommunications
Current Yield: 6.7%
Dividend Growth Streak: 18 years
Fair Value Target: $50 (29% higher than current price)

Telecom stocks like Verizon have been struggling due to high debt loads and industry competition. However, with a low payout ratio and strong cash flow, Verizon remains a solid option for income-focused investors.

Final Thoughts: Stock Prices Follow Earnings & Intrinsic Value

Investing in dividend stocks should be based on careful valuation and business fundamentals. Stock prices tend to gravitate toward intrinsic value, meaning companies that are undervalued today could appreciate over time if their earnings continue to grow.

As Benjamin Graham said: “In the short run, the market is a voting machine but in the long run, it is a weighing machine.” Short-term market fluctuations are driven by sentiment, but long-term investing success depends on understanding a business’s intrinsic value and earnings growth potential.

Take Action

  1. Do your own research – Don’t invest based solely on this list.

  2. Diversify your portfolio – Spreading risk across sectors can protect your wealth.

  3. Stay patient – Long-term investing is a marathon, not a sprint.

If you found this article useful, consider joining my free dividend investing community, and let’s discuss wealth-building strategies together!

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