One of the best reasons to buy dividend stocks on sale is that a cheaper price means better-than-normal yields. A stock's price is inversely related to its dividend yield, and that means not only are you getting the stock at a cheap price when you buy it on the dip, but you also can secure a better payout along the way. Buying cheap dividend stocks is a great way to position your portfolio for some great returns as you can benefit from possible capital gains while also collecting recurring income.
Three dividend stocks that have fallen in the past month and that you can buy on the dip today are Bristol Myers Squibb (NYSE: BMY), Campbell Soup (NYSE: CPB), and Citigroup (NYSE: C). Because all of the stocks are in different industries, buying all three will also allow you to diversify your portfolio. Here's why they look like good buys right now.
Biopharmaceutical company Bristol Myers Squibb is down 6% in the past month, falling further than the S&P 500, which has declined less than 1% over the same period. There hasn't been any terribly bad news in recent weeks to explain the stock's fall, and it's likely due to the recent general weakness in the markets.