3 Cheap High-Yielding Stocks

The average dividend yield in the S&P 500 Index remains low at 1.1%. As a result, income investors largely have to settle for less dividend income when buying stocks.

However, there are still quality companies with high dividend yields well above the market average. Investors do not have to sacrifice income when it comes to quality dividend payers with competitive advantages and long-term growth potential. 

And, investors can look for cheap high dividend stocks that combine a high dividend yield, with a low valuation multiple. In this way, these stocks have wide appeal for value and income investors.

All 3 stocks have yields above 5%, and single-digit P/E multiples.

Best Buy Co. (BBY)

Best Buy Co. Inc. is one of the largest consumer electronics retailers in North America with operations in the U.S. and Canada. Best Buy sells consumer electronics, personal computers, software, mobile devices, and appliances, and provides services.

At the end of Q3 FY2026, Best Buy operated 886 Best Buy stores and 18 Best Buy Outlet Centers in the U.S., 20 Pacific Sales Stores, 2 Yardbird Stores, 129 Best Buy stores in Canada, and 28 Best Buy Mobile Stand-Alone Stores in Canada. 

Best Buy reported Q4 FY2026 results on March 3rd, 2026. Enterprise revenue decreased to $13,814M from $13,948M, and non-GAAP diluted earnings per share increased to $2.61 from $2.58 on a year-over-year basis. GAAP diluted EPS climbed to $2.56 from $0.54. Comparable enterprise revenue decreased 0.8%.

Domestic revenue fell 1.1% due to soft home theater and appliance sales. Sales were lower for 3 out of 5 categories: Computing and Mobile Phones (+5.4%), Consumer Electronics (-7.3%), Appliances (-10.5%), Entertainment (-0.3%), and Services (+4.6%).

Comparable domestic online sales decreased -2.3% compared to the prior year. Domestic online sales comprised about 39.0% of total domestic revenue.

For fiscal 2027 Best Buy expects revenue of $41.2 billion to $42.1 billion and adjusted EPS of $6.45 at the midpoint of guidance.

BBY has increased its dividend for 23 consecutive years and the stock yields 6.2%.

Franklin Resources (BEN)

Franklin Resources is a global asset manager that offers investment management (which makes up the bulk of fees the company collects) and related services to its customers, including sales, distribution, and shareholder servicing.

As of December 31st, 2025, assets under management (AUM) totaled $1.684 trillion.

On December 17th, 2025, Franklin Resources announced a $0.33 quarterly dividend, marking a 3% year-over-year increase and the company’s 46th consecutive year of increasing its payment.

The company qualifies as a Dividend Aristocrat due to its history of annual dividend increases.

In the most recently reported quarter, total assets under management equaled $1.684 trillion, up $23 billion sequentially, as a result of $28 billion of long-term net inflows, and $6.1 billion from the Apera Asset Management acquisition. AUM growth was partly offset by $10.1 billion of net market change, distributions, and other, plus $1.2 billion of cash management net outflows.

For the quarter, operating revenue totaled $2.327 billion, up 3% year-over-year. On an adjusted basis, net income equaled $378 million or $0.70 per share, up 19% from $0.59 in Q1 2025.

During Q1, Franklin repurchased 1.8 million shares of stock for $42 million. Franklin ended the quarter with $6.2 billion in cash and investments.

For 2026, we expect BEN to generate EPS of $2.62.

HP Inc. (HPQ)

HP Inc. has centered its business activities around two main segments: its product portfolio of printers, and its range of so-called personal systems, which includes computers and mobile devices.

HP reported its first quarter (fiscal 2026) results on February 24th. The company reported revenue of $14.4 billion for the quarter, up 7% year-over-year. Revenue beat the analyst consensus estimate by $510 million.

Non-GAAP earnings-per-share totaled $0.81 during the first quarter, which was just ahead of the analyst consensus estimate. Earnings-per-share were up by 9% from one year earlier on an adjusted basis.

The company currently forecasts adjusted earnings-per-share in a range of $0.70 to $0.76 for the second quarter of the current fiscal year. For fiscal 2026, HP is expected to generate earnings-per-share of around $3.05, with management forecasting free cash flow at around $2.9 billion.

HPQ has increased its dividend for 15 consecutive years. The stock currently yields 6.5%.