3 Cheap High Dividend Stocks Yielding Over 5%

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.

Prudential Financial (PRU)

Prudential Financial, now in business for over 140 years, operates in the United States, Asia, Europe and Latin America, with more than $1.6 trillion in assets under management (AUM). The company provides financial products – including life insurance, annuities, retirement-related services, mutual funds, and investment management.

Prudential operates in four divisions: PGIM (formerly Prudential Investment Management), U.S. Businesses, International Businesses and Corporate & Other.

On February 3rd, 2026, Prudential announced fourth quarter and full year results. For the quarter, the company reported net income of $905 million, or $2.55 per share, versus a net loss of $57 million, or -$0.17 per share, in the prior year.

After-tax adjusted operating income totaled $1.168 billion, or $3.30 per share, compared to $1.068 billion, or $2.96 per share in the prior year. Adjusted EPS was $0.06 below estimates.

For the year, net income of $3.576 billion, or $9.99 per share, was up from $2.727 billion, or $7.50 per share, in 2024. Prudential is expected to earn $14.90 per share in 2026, which would be a 3.3% increase from the prior year.

On February 4th, 2026, Prudential declared a $1.40 quarterly dividend, marking a 3.7% increase. PRU has increased its dividend for 18 consecutive years and currently yields 5.7%.

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%.

Open Text Corporation (OTEX)

Open Text is a tech company that provides information management solutions, including cloud solutions. It operates in 180 countries and represents ~80% of total revenue. Its ARR includes cloud services, subscriptions, and customer support.

Open Text reported its fiscal Q2 2026 results on 02/05/2026. For the quarter, revenue declined 0.6% year over year to $1.3 billion. However, cloud revenues rose 3.4% to $478 million, while enterprise cloud bookings rose 18% year over year to $295 million.

Adjusted earnings-per-share rose 1.8% to $1.13. This quarter, Open Text repurchased $50 million of its common stock. OTEX continues to forecast fiscal 2026 cloud revenue growth of 3-4% and revenue growth of 1-2%. We maintain our fiscal 2026 EPS estimate at $4.01.

Open Text is a low capex business – averaging capex of ~13% of operating cash flow from fiscal 2021-25. It was ~17% in fiscal 2026. It had a track record of successful M&A and a focus on cash flow (including free cash flow (“FCF”)) generation, allowing it to increase its dividend every year since initiating it in 2013. From 2016-2025, Open Text grew its EPS by 10.7% per year.

The key growth driver of Open Text is M&A activity, which could lead to lumpy growth. Since inception OTEX has made 69 acquisitions, including Micro Focus. In fiscal 2026, the company expects to return to organic growth for its revenue and aims to continue raising its dividend and buying back shares.

OTEX has increased its dividend for 12 consecutive years and currently yields 5.0%.