The U.S. economy is expected to experience a slowdown in 2024, alongside persistent inflation.
To mitigate the negative effects of inflation, investors can consider dividend stocks, which historically have contributed about 40% of the stock market's total return since 1930.
During periods of high inflation, dividends have accounted for more than half of the market's total return.
Fortunately, there are numerous dividend stocks priced under $20 that offer attractive opportunities. Here are ten such stocks recommended by CFRA:
1. **Vale SA (VALE)** - Implied Upside Over March 20 Close: 37.3%, Forward Dividend Yield: 14.2%
2. **Energy Transfer LP (ET)** - Implied Upside Over March 20 Close: 2.2%, Forward Dividend Yield: 8.1%
3. **Cenovus Energy Inc. (CVE)** - Implied Upside Over March 20 Close: 4%, Forward Dividend Yield: 2.2%
4. **Orange SA (ORAN)** - Implied Upside Over March 20 Close: 12%, Forward Dividend Yield: 6.5%
5. **Telefonica SA (TEF)** - Implied Upside Over March 20 Close: 5.1%, Forward Dividend Yield: 7.6%
6. **Nokia Corp. (NOK)** - Implied Upside Over March 20 Close: 53.2%, Forward Dividend Yield: 3.6%
7. **Regions Financial Corp. (RF)** - Implied Upside Over March 20 Close: 11.3%, Forward Dividend Yield: 4.9%
8. **Healthpeak Properties Inc. (DOC)** - Implied Upside Over March 20 Close: 19.5%, Forward Dividend Yield: 6.8%
9. **Aegon Ltd. (AEG)** - Implied Upside Over March 20 Close: 10.9%, Forward Dividend Yield: 5.5%
10. **Patterson-UTI Energy Inc. (PTEN)** - Implied Upside Over March 20 Close: 19.4%, Forward Dividend Yield: 2.7%
**Vale SA (VALE):** Vale is a Brazilian miner and one of the world's largest producers of iron ore and nickel.
Despite a decline of 18.4% in Vale shares this year, the stock offers an impressive dividend yield of 14.2%, the highest on this list.
Despite ongoing liability risks related to the 2019 Brumadinho dam disaster in Brazil, Vale's strong cash flow and safety priorities make it an attractive investment. CFRA rates VALE stock as a "buy" with a $17 price target.
**Energy Transfer LP (ET):** Energy Transfer is a U.S. midstream oil and gas infrastructure company.
Despite uncertainties such as the Biden administration's stance on LNG exports, Energy Transfer's strong cash flow per share and strategic assets make it a compelling investment. CFRA rates ET stock as a "buy" with a $16 price target.
**Cenovus Energy Inc. (CVE):** Cenovus is a Canadian integrated oil company with a focus on Western Canada crude oil.
Despite a drop in U.S. crude oil prices in 2023, Cenovus' low breakeven costs and strong assets position it well for 2024. CFRA rates CVE stock as a "buy" with a $20 price target.
**Orange SA (ORAN):** Orange is a French telecom company facing challenges in Europe but is attractively valued.
Cost-cutting measures and asset monetization efforts are expected to support Orange's margins and dividend commitments. CFRA rates ORAN stock as a "buy" with a $13 price target.
**Telefonica SA (TEF):** Telefonica has improved its portfolio and balance sheet, with positive performance in key markets.
CFRA rates TEF stock as a "buy" with a $4.50 price target.
**Nokia Corp. (NOK):** Nokia, a telecom equipment and digital map data vendor, is poised to benefit from the global 5G investment cycle.
Despite challenges in mobile networks revenue, Nokia is expected to return to positive growth in 2024.
CFRA rates NOK stock as a "buy" with a $5.50 price target.
**Regions Financial Corp. (RF):** Regions Financial, a U.S. regional bank, has a strong capital position and is focused on the attractive U.S. Southeast region. CFRA rates RF stock as a "buy" with a $22 price target.
**Healthpeak Properties Inc. (DOC):** Healthpeak Properties, a healthcare REIT, recently merged with Physicians Realty Trust.
The combined company is expected to perform well, given its exposure to the medical office sector. CFRA rates DOC stock as a "buy" with a $21 price target.
**Aegon Ltd. (AEG):** Aegon, a Dutch insurance company, has a solid management track record and focuses on strategic assets. CFRA rates AEG stock as a "buy" with a $6.50 price target.
**Patterson-UTI Energy Inc. (PTEN):** Patterson-UTI Energy, a U.S. oil and gas drilling company, is expected to generate significant free cash flow in 2024. CFRA rates PTEN stock as a "buy" with a $14 price target.