The best dividend stocks offer high yields and low chances of dividend cuts. Often, these types of dividend stocks are priced at a premium. But when short-term issues arise, investors can find bargains. Two examples of cheap dividend stocks to buy right now are AT&T (T -1.37%) and 3M (MMM -0.66%).

AT&T

Telecom giant AT&T is not immune to an economic downturn. While wireless service is essential for most, customers can pull back in a variety of ways. Stretching out payments can put pressure on AT&T's cash flow, and delaying phone upgrades can hurt the company's equipment revenue.

This type of customer behavior isn't unusual during periods of economic uncertainty. In the first quarter of 2023, while wireless-service revenue booked a healthy 5.2% increase, wireless-equipment revenue fell by nearly 5%. The company also added fewer net phone subscribers than during any quarter in 2022. This year is going be less rosy than last year for AT&T's core business.

Even so, the company is still churning out plenty of cash. Despite a weak free-cash-flow (FCF) haul in the first quarter, AT&T continues to expect to generate around $16 billion of FCF this year. That number could rise further in 2024 and beyond as economic conditions normalize, and as the company's heavy investment cycle comes to an end.

AT&T currently pays a quarterly dividend of $0.2775 per share, which works out to a dividend yield of 6.5%. While a sky-high yield is great, the sustainability of the dividend is perhaps more important. The good news is that things would have to go very wrong for AT&T for any real pressure to be put on the dividend. Assuming the company hits its $16 billion FCF target, the dividend will consume just over half of that total this year.

The company's growing fiber internet business is icing on the cake. While AT&T's legacy wireline business is in perpetual decline, customers are willing to pay higher prices for ultra-fast fiber internet. Consumer fiber revenue has now surpassed non-fiber revenue, and it should grow at a healthy pace for many years as the company expands its fiber network.

Dividend growth will be slow or nonexistent for now as AT&T prioritizes paying down its debt, but as FCF rises in the years ahead, the dividend should eventually start growing along with it. Add in a rock-bottom valuation -- AT&T is valued at less than 8 times forward FCF -- and you have a compelling dividend stock that has the potential to beat the market.

3M

Shares of industrial giant 3M have been trounced over the past two years partly because of weakening sales. While the sales trends across the company's various segments aren't yet improving, a cost-cutting plan will help shore up the bottom line and make 3M more efficient as it rides out the storm.

Total sales were down 9% year over year in its first quarter, and organic sales slumped 4.9%. For the full year, the company sees a sales decline somewhere between 2% and 6%. It is facing major headwinds in its consumer-facing and semiconductor-related businesses that will drag down the top line this year.

Areas of weakness for 3M in the first quarter included personal safety products, industrial adhesives, masking systems, electronics, transportation safety, stationery, and home improvement. Electronics sales were down a whopping 35% year over year as consumers pulled back on buying smartphones, TVs, and tablets, and as original equipment manufacturers reduced inventories.

3M's profits are also trending lower, with adjusted earnings per share down 25% in the first quarter.

Tumbling profits should have dividend investors at least a bit concerned. 3M pays a quarterly dividend of $1.50 per share, which is now eating up most of its earnings. Over the next year, that dividend will cost about $3.3 billion, and it will consume nearly 80% of free cash flow at the low end of company's guidance ranges for 2023.

The good news is that 3M is taking this problem seriously. The company is eliminating around 6,000 jobs, culling layers of management, and working to simplify its supply chain. These actions are expected to improve operating income by between $700 million and $900 million on an annual basis.

The company has paid a dividend without interruption for more than 100 years, and it's increased that dividend for 64 years straight. The current economy is one of many tests the company has been put through. Dividend growth will certainly be sluggish for now, but 3M won't be cutting the payout unless it has absolutely no choice.

Hovering around $105, 3M stock trades for just 12 times the low end of its adjusted earnings guidance for 2023. Tack on a dividend yielding about 5.7%, and you have a bargain dividend stock for investors willing to accept lackluster results for the time being.