3 Cheap Dividend Stocks To Buy And Hold

De-risk your portfolio with these four undervalued dividend payers that have some of the safest yields in the market. With the market is pulling back again, now is a great time to start adding shares while they’re still cheap.

After a strong run in March, the stock market appears to be taking a step back.

We saw the S&P 500 make a 12% move higher from mid-February to April, but, believe it or not, the S&P 500 is now negative again for 2016. It’s shaping up to be a volatile year.

The market is in the red for April, which is historically one of the strongest months of the year.

This comes as we’re getting close to “sell in May and go away.” And I’ve mentioned the fact that some very popular dividends are worth avoiding. Instead, however, investors should be using the current selloff to buy up cheap dividends that they can own in May, June, July and in months and years beyond.

Now, there are a number of stocks that have taken a beating of late, and that’s created some great buying opportunities. There are close to 350 stocks that pay a 2% plus dividend yield and are down 10% in 2016.

However, not all of these dividends are actually “cheap” from a valuation perspective, nor do all have the balance sheets or cash flows to support their dividends.

The key is to be prudent.

Here are the top three undervalued dividend stocks that you can now buy for cheap:

No. 1 Cheap Dividend Stock On Sale: Boeing (NYSE: BA)

Shares of Boeing, the leading airline maker, have fallen 11% this year. The stock is now trading at just 13 times next year’s earnings estimates which is the cheapest we’ve seen it trade at in close to three years.

Still, Boeing is already seeing marked demand for new aircrafts to replace aging airlines in the U.S. and U.K. But it’s also an underrated play on the emerging markets. Key growth opportunities over the next few years will be driven by new aircraft demand from emerging markets. Regardless of where the growth comes from, the aircraft business is an enticing and high margin business. Boeing has a very robust 33% return on invested capital.