2 Unstoppable Dividend Stocks to Buy Now for Under $200

Investing money in the stock market, regardless of the economic climate, can help you achieve your long-term financial goals. While recent stock market volatility has some investors worried, simple methods like dollar-cost averaging can prove extremely effective in a wide range of market environments. Another great way to navigate uncertain times is to invest in dividend stocks.

Dividend stocks can be a great way to boost your portfolio by generating additional income beyond just stock price appreciation. But the beauty of dividends is their flexibility: you can use your dividend income however you like—you can save it, use it to fund monthly expenses, or simply reinvest it as you see fit.

So if you’re looking for great dividend stocks you can buy for under $200 per share, here are two companies worth considering.

1. Medtronic

Medtronic (MDT) is a leading manufacturer of medical devices in the world. Its products include pacemakers, insulin pumps, insulin pens, and continuous glucose monitors, to name a few of the medical devices it is known for.

The company has a rich history of honoring dividends and has increased its dividend every year for 46 years—and counting. Medtronic currently pays out about 93% of its earnings as dividends. The stock boasts an annual dividend yield of $2.80 per share, which is about 3% at current share prices.

Over the past 12 months, the company has generated profits of about $4 billion on revenues of about $33 billion, with cash flow from operations of almost $7 billion. As a result, cash on hand remains close to $8 billion at the end of the latest quarter.

Looking at Medtronic’s latest quarter, which is also the first quarter of fiscal 2025, revenue growth was a modest 3% year over year. However, net income rose an impressive 32% year over year, to just over $1 billion. The increase was driven by a 6% increase in revenue from its cardiovascular portfolio and a 12% increase in its diabetes portfolio.

While medical device companies may not be the most exciting additions to a portfolio, companies like Medtronic are pillars in industries that are typically much more resilient to economic changes than companies in more cyclical spaces. Medtronic has struggled with growth in recent years, which is reflected in its modestly performing stock price, although its dividend has been consistent. This could present an opportunity to buy stock in a potentially undervalued company with a price-to-sales (P/S) ratio of less than 4 that not only provides a strong value proposition to a broad customer base, but could also provide steady income for your portfolio over the long term.

2. Purpose

Objective (TTT) 1.97%) has an even more impressive dividend history than the first pick on today’s list. The retail giant’s Q3 dividend will not only be its 228th consecutive dividend payment since it went public in 1967, but it is also on track to achieve its 53rd consecutive year of dividend increases. The target yield is around 3% for investors based on current stock prices, with an annual dividend of $4.48 per share. The company currently pays out just 46% of its earnings to investors in dividends.

Target has had its fair share of challenges in recent years. During the peak of the pandemic shopping season, the brick-and-mortar retailer thrived on a steady expansion into e-commerce, easy pickup and delivery options, and a diverse product offering that met a full range of consumer needs. Target’s deep product diversity continues to provide a healthy value proposition for consumers.

But growth slowing from pandemic levels, changing consumer buying patterns, supply chain issues and an increase in retail theft have weighed on growth. The company also was left with excess inventory levels after inflation depresses the pace of consumer spending, forcing it to make steep cuts, another move that has squeezed margins and profitability.

The good news is that Target is slowly but surely getting back on track. In its latest financial report for the second quarter, the company reported that total revenue of about $26 billion was up 2.7% from a year earlier, while comparable sales were up 2% year over year. Digital sales have been a solid growth segment for the company, with year-over-year growth in that business coming in at 8.7% in the quarter.

Target remains profitable, with net growth clearly outpacing revenue growth. The company reported operating income of $1.6 billion for the three-month period, up 36.6% from a year earlier. Net income rose a healthy 43% year over year to $1.2 billion. Target will likely face volatile consumer spending patterns and normalizing growth rates in the near term after the pandemic’s surges and dips. Regardless, the company still looks like a solid pick for income investors looking to buy and hold for the long term.