3 Value Stocks You Can Buy Right Now With Less Than $100

The line between value stocks and growth stocks can be blurry. In general, value stocks are slower growing, less volatile, and trade for reasonable or cheap valuations. This type of investment is appealing. After all, who doesn't like getting a discount? Sure, you might be giving up some growth, but for some investors, the lack of stress that can accompany value stocks is appealing.

For investors with less than $100 to put into the market, there are several choices of value stocks that are solid investments. With $100, you could buy one share. For investors with access to a brokerage that allows fractional shares, $100 could buy you pieces of all three of these companies. Let's dive in to see what makes these stocks compelling buys.

Coca-Cola 

When it comes to companies with iconic brands, it's hard to top Coca-Cola (KO). Coca-Cola has near-ubiquitous global brand recognition and its portfolio of beverages includes 26 brands with annual sales of at least $1 billion. The company also claims one of the world's best-known investors as a shareholder. Warren Buffett's Berkshire Hathaway owns approximately 9% of Coca-Cola shares outstanding. 

Investors shouldn't expect rapid growth with a company as established as Coca-Cola. In fact, what draws most shareholders to the stock is its lack of volatility and its dividend. 

Coca-Cola has a beta of 0.5, meaning it's about half as volatile as the overall stock market. This makes Coca-Cola an ideal investment for those looking for ballast in their portfolio. Coca-Cola has also raised its dividend for 61 consecutive years, landing it a spot on the list of Dividend Kings. The stock's current dividend yield is 3%, which easily outpaces the S&P 500's yield of 1.5%. 

McCormick

McCormick (MKC 0.23%) is a global leader in flavor. That's how the business describes itself in its 10-K SEC filing, and it's an apt description. Walk down the spice aisle in your local grocery store and you're likely to see that it's dominated by McCormick products. The company also owns many other popular brands like Old Bay, Franks RedHot, and Cholula hot sauce.

This near-monopoly on the at-home flavor market is paired with a robust away-from-home business. McCormick's Flavor Solutions segment provides spices and other flavor-related products to food manufacturers and restaurants.

In the recently reported second quarter of 2023, McCormick posted strong results. Total revenue increased by 8% year over year, which was led by raising prices to offset the impact inflation has had on the business over the past year. This pricing power is an advantage due to McCormick's dominance in the flavor space. 

Investors should also take note of the profitability improvements McCormick is making. Gross margin in Q2 improved by 310 basis points to 37.1%, operating income grew by 41%, and earnings per share jumped by 27%. Of note in these results is the impact of cost-saving plans the company has been implementing over the past several quarters.

Like Coca-Cola, McCormick has a low beta and a long track record of increasing its dividend each year. The current dividend yield is 1.8% and the beta is 0.6. McCormick is another stock worth owning for stability and dividend income. 

Bank of America

When the banking sector faced its mini-crisis in March, consumer confidence waned and many people moved deposits from smaller regional banks to the larger "too big to fail" banks. One of those larger banks that was a beneficiary was Bank of America (BAC -0.21%). In fact, in a matter of a few days in March, Bank of America saw $15 billion in new deposits. 

When Bank of America reported earnings in April, the company announced quarterly records for consumer checking accounts and consumer investment accounts. Revenue grew by 13% year over year and net income increased by 15%. 

While the bank did see an increase in new deposits as a result of the bank failures in March, its strength as a business actually lies in its long-tenured clients. In fact, 83% of balances at Bank of America are from clients who have been customers for five or more years, and 67% of balances are from customers who've been with the bank for 10 or more years. It's clear that Bank of America's customer relationships are very sticky.

Bank of America is a little more volatile than Coca-Cola and McCormick, with a beta of 1.4, but it has the highest dividend yield of the bunch at 3.1%. With shares trading for under $30, this stock is a great buy for investors looking for banking sector exposure and a strong dividend.