An increase in stock price isn't the only way to make money from investing; investors can also profit from dividend payouts. While all companies don't pay out dividends, those that do can often prove to be worthwhile investments and a means to produce extra income by simply holding a stock. Here are three cheap stocks to consider for those looking for dividend stocks.

Person smiling while holding cash in both hands.

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Intel

Since its founding in 1968, Intel (INTC -9.20%) has been a prominent player in the technology space. The company designs and manufactures computer products and technology, and has a hand in data storage, network capabilities, and communications. However, what is likely to be a big contributor to Intel's future success is its positioning in the semiconductor market, which is projected to grow at a compounded rate of 11% annually from 2022 to 2030.

Intel's dividend yield is 3.24% ($1.46 per share annually), almost 2% higher than Vanguard's S&P 500 fund. In 2021, Intel brought in $79 billion in revenue, up from $77.9 billion in 2020. Although Intel's net income in 2021 was down 5% from 2020, part of that drop has to do with the 10% increase the company spent on research and development.

With an emphasis on investing in the future, Intel is a good long-term dividend buy at this current price.

AT&T

The telecommunications giant AT&T (T 1.02%) made some high-priced deals in recent years with its $67.1 million acquisition of DirecTV in 2015 and its $109 million acquisition of Time Warner in 2018. Unfortunately, these purchases didn't turn out to be as lucrative as the company's management projected. In 2021, AT&T spun off DirecTV in a $16 billion deal, and in February 2022, it agreed to a $43 billion deal to merge WarnerMedia with Discovery.

As part of the WarnerMedia deal, AT&T said it would be cutting its lucrative $2.08 per share annual dividend down to $1.11 per share, leading investors to wonder if the stock is still a worthwhile investment. Even with the cut, at AT&T's relatively cheap price, the dividend yield would still be one of the highest in the S&P 500.

As the company refocuses on its core telecommunications business and emphasizes making investments to improve its 5G and fiber capabilities, it's poised to flourish in the long run and be a profitable investment -- even with the new dividend cuts.

Verizon

Verizon (VZ 1.17%) is the world's second-largest telecommunications company -- after AT&T. In 2021, Verizon's revenue grew 4.1%, bringing in $17.8 billion (up 6.5% year over year) in Q4 alone. The company also delivered on its goal to achieve $10 billion in cost savings. With a full-year cash flow of $39.5 billion, the telecommunications company enjoyed a lucrative 2021.

One thing that attracts investors to Verizon is its dividend, which the company has consistently increased over the past 15 years. With a current annual dividend of $2.56 per share, Verizon provides a 4.76% annual yield -- one of the highest in the S&P 500 as well as one of the most reliable. Yet its valuation is relatively cheap compared to the long-term value it can potentially provide.

Two of the company's main 2022 priorities are strengthening and growing its core business and leveraging assets to grow its 5G capabilities. If the company can deliver on these goals and continue to grow its dividend, as it has in the past, the current stock price makes it a bargain for investors looking for investment income.