3 Dividend Stocks Under $25: Ford, Kraft Heinz, Invesco

Ford Motor (NYSE:F), trading around $12 per share with a substantial 4.7% dividend yield, represents a compelling opportunity for value-conscious income investors. The nearly $50 billion automaker has experienced significant volatility over the past decade, particularly since the 2021 market peak, but recent developments suggest potential for renewed momentum. With shares up approximately 38% over the last six months, Ford appears to be awakening from its slumber, supported by potential tariff relief for domestic car producers that could alleviate one of the company’s persistent headwinds.

The valuation metrics tell an attractive story for Ford, trading at just 8.9 times forward price-to-earnings ratio. This represents a significant discount to the broader market, particularly for a company with iconic brands like Mustang and F-150 in its portfolio. For investors interested in electric vehicle innovation, Ford offers exposure to the EV transition while maintaining its traditional automotive strengths. The combination of deep value characteristics and high dividend yield makes Ford particularly appealing for investors who can only purchase whole shares through their brokerage accounts.

Kraft Heinz (NASDAQ:KHC) presents one of the most dramatic value stories in the current market, having shed approximately 73% of its value since its 2017 peak. Now trading around $25 per share with a generous 6.1% dividend yield, the ketchup and Mac & Cheese maker represents what the analysis describes as ‘one of the deepest value bets in the entire market.’ This situation is particularly notable given that Kraft Heinz represents one of Warren Buffett’s rare soured investments, with the legendary investor reportedly ‘disappointed’ with the company’s recent strategic direction.

Despite the challenges that have plagued Kraft Heinz in recent years, the current valuation and dividend yield combination creates a compelling risk-reward scenario for income investors. The company’s plans to potentially split operations are viewed as a ‘shareholder-creative move’ that could unlock significant value. For investors willing to look past recent performance and focus on the fundamental value proposition, Kraft Heinz offers one of the highest dividend yields among established consumer staples companies, providing substantial income while investors wait for a potential turnaround.

Invesco (NYSE:IVZ), familiar to many ETF investors as the asset manager behind popular products like the QQQ, has demonstrated impressive momentum with an 89% gain over the past six months. Trading at approximately $24 per share with a 3.5% dividend yield, this $10.8 billion mid-cap company stands to benefit from continued growth in the passive investment market. Despite intense competition in the ETF space, the ongoing bull market and potential for increased fund inflows position Invesco for sustained success.

The valuation remains attractive at just 10.4 times forward P/E, particularly given the company’s exposure to the growing ETF market and potential expansion into actively managed ETFs. If the artificial intelligence boom continues, as many analysts anticipate, Invesco could experience extended growth as investor enthusiasm drives additional capital into the markets and the company’s investment products. For income investors seeking exposure to the financial services sector, Invesco offers a balanced combination of growth potential and dividend income at an accessible price point.

Investing in lower-priced stocks like Ford, Kraft Heinz, and Invesco requires careful consideration of both the opportunities and risks involved. As noted in the analysis, lower-priced stocks often belong to companies that have ‘either imploded in the past or boast a market cap that would classify them as a mid-cap or even small-cap stock.’ This characteristic typically translates to higher volatility compared to large-cap counterparts, making thorough due diligence essential before investment.

The appeal of these three specific stocks lies in their combination of affordable share prices, attractive dividend yields, and reasonable valuations. All three companies trade at forward P/E ratios under 11, suggesting potential undervaluation relative to their earnings potential. For investors whose brokerages don’t permit fractional share purchases, these sub-$25 stocks provide an opportunity to build meaningful positions with limited capital while collecting regular dividend income. However, investors should remember that a stock’s market price has ‘absolutely nothing to do with the intrinsic value to be had,’ emphasizing the importance of focusing on fundamental business quality rather than share price alone.