At first glance, the news might look bleak for investors wanting to find dirt cheap stocks. Until recently, the indexes had reached record highs, which tends to happen when the bargains have disappeared.
Fortunately, the run-up has primarily affected many of the top stocks. Since other stocks are less affected, one can find dirt cheap stocks and may want to gravitate toward these two.
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1. Realty Income
Admittedly, one might seem to take the phrase "dirt cheap" too literally when choosing a land-based investment like Realty Income (O +0.35%). The real estate investment trust (REIT) specializes in single-tenant, net leased properties where the tenant covers the maintenance, property taxes, and insurance costs.
It also may not appear cheap, considering the 61 P/E ratio. However, for REITs, FFO income, a measure of a REIT's free cash flow, is more critical. When one considers the trailing-12-month FFO income of $4.20 per share, the price-to-FFO income ratio is just 16.
Additionally, that means it can cover the $3.24 per share in annual dividend costs. Since that payout offers a yield of 4.9%, investors earn a return comparable to many fixed-income investments today.
Furthermore, the Federal Reserve has cut interest rates in recent months. This is important because lower rates make more deals profitable, increasing profits.
NYSE: O
Key Data Points
Realty Income's stock price still has not returned to its high from early 2020. Nonetheless, investors can buy 38 shares at current prices for less than $2,500. Between the appeal of lower interest rates and the high dividend return, the low multiple relative to FFO income could be the catalyst that Realty Income stock needs to stage a recovery.
2. Constellation Brands
Constellation Brands (STZ 1.17%) was a popular low-cost stock for Warren Buffett's Berkshire Hathaway before Buffett's retirement at the end of last year.
Like Realty Income, its 25 P/E ratio is not far below the 29 average for the S&P 500 (^GSPC 1.52%). Still, when one factors in the 13 forward P/E ratio, the beverage stock makes it look like a top value pick heading into 2026.
Indeed, sales have suffered as falling alcohol consumption and the imposition of tariffs on its Mexican beers have weighed on the stock.
Also, investors should note that Berkshire sold about 3% of its stake before Buffett retired. The stock also fell for much of 2025, though after a recovery, it is only down modestly over the last year.
NYSE: STZ
Key Data Points
Amid those challenges, its $7.2 billion in net sales for the first nine months of fiscal 2026 (ended Nov. 30, 2025) fell 10% from year-ago levels.
However, alcohol has been popular since the beginning of recorded history, making it unlikely that current dietary trends will end its use.
Moreover, shareholders benefit from its $4.08-per-share annual dividend, which yields around 2.6%. This payout has risen every year since 2015, increasing the likelihood that the annual payout hikes will continue.
As of now, investors can buy 16 shares for just under $2,500. Given its low forward P/E and high dividend payout, Constellation could have the catalysts it needs to begin a long-awaited recovery.
