Dividend stocks that you can consider buying while their prices are this cheap

Dividends on FTSE 100 again FTSE 250 they have been receiving a lot of attention, and some share prices have been increasing.

Bank stocks are very popular now, however HSBC Holdings share price (LSE: HSBA) seems to be getting little love.

HSBC share price achieved in 2024. But the forecasted dividend yield is still at 7.3%, and analysts expect it to continue.

Comparing that to the 5% yield on cards Lloyds Banking Groupa decrease of 5.2%. NatWest Groupor with Barclays' 3.7%, I think HSBC is starting to look very cheap. Profits are never guaranteed, mind.

The difference is probably lower in the risk guidelines between HSBC and others. While UK-based banks appear to be entering better economic times, fears are growing for the Chinese economy.

But in the long run, I expect the Asian economy to grow significantly. And at today's low price-to-earnings (P/E) ratio of less than seven, I think the short-term risk is worth taking.

HSBC itself seems to think so, as it has been buying back its own shares.

Emerging markets

My second choice is also based on my long-term exposure to Asian economies, as well as other emerging markets.

That's right Ashmore (LSE: ASHM), an asset management company focused on, well, emerging markets. That's something people have been pulling back in recent years.

If people are worried about the economies of their homes, then how scary should the unknown of distant places be?

Ashmore's share price has fallen 60% in the past five years, and that appears to be due to customers pulling out their money.

The company put its assets under management at $49.5bn as at 30 June 2024. As recently as two years ago, that number increased by $64bn.

Ashmore's actual performance, however, looks good to me. In the interim period of December 2023, the company reported “balance sheet strength of approximately £800 million of operating assets including £542 million of cash“.

And it has maintained its dividends, with a whopping 9.7% forecast annual yield.

I expect short-term volatility, and the share price may drop significantly. But I think Ashmore should consider long-term investors.

A cash cow

I have looked at the advertising and PR giant WPP (LSE: WPP) most recently. A weak share price puts the stock at a forward P/E of around 10 and falling.

WPP hasn't been good since the good old days of Sir Martin Sorrell.

And of course, the pandemic, inflation, interest rates… all have had a huge impact on spending on advertising and the social media business.

It may take a while for business to return to previous levels. And since the budget will remain tight, that time may be longer.

But for me, the predicted 5.5% dividend yield makes this an attractive stock to consider buying now. It will be something to manage with patience, for a long time and a recovery that I hope will come.

But dividend income can be a nice sweetener while we wait.