Unlock Investment Potential With These 3 Dirt Cheap Stocks

Feeling overwhelmed by today’s soaring market valuations? While the S&P 500 stands near peak levels not seen in over two decades, savvy investors can still uncover hidden gems among the plethora of high-priced stocks. Look no further than Alphabet, Realty Income, and Energy Transfer—three companies that shine brightly for those with $500 to invest.

Alphabet’s AI Advantage

Despite challenges posed by tariff-induced market jitters, Alphabet’s stock stands out in the tech arena, priced at an alluring 19 times forward earnings. Concerns about AI’s potential impact on Google’s flagship search business have left this tech giant undervalued compared to its peers in the Magnificent Seven.

However, as of the latest reports, AI has bolstered, not hindered, Google’s earnings. Search revenue soared by 10% to nearly $51 billion recently. CEO Sundar Pichai highlighted this in the company’s quarterly release, praising features like AI Overviews and the newly launched Gemini 2.5 model for boosting performance. Alphabet’s forward-thinking strategies across platforms like Google Cloud and YouTube are fueling its growth trajectory.

Realty Income: Steadfast REIT Expansion

Real estate investment trusts (REITs) often provide stability in turbulent markets, and Realty Income is no exception. With a stock price trading under 13.5 times forward earnings and a dividend yield exceeding 5.5%, this REIT is a steal. As interest rates climb, Realty Income has maintained its growth by investing $1.4 billion in acquisitions just this year, propelling dividend increases with each investment.

Expect Realty Income to capitalize even further as borrowing costs stabilize. Management anticipates up to $4 billion in new investments, potentially accelerating growth and valuation.

Energy Transfer’s Strategic Positioning

A stalwart in energy infrastructure, Energy Transfer commands a diversified asset portfolio, from pipelines to storage terminals. Its stable cash flow remains unshaken, with 90% coming from fee-based operations. Despite its solid stance, the company’s valuation lingers among the lowest in its sector, offering a staggering 7.5% distribution yield to investors.

The midstream giant benefits from its robust financial footing and promising growth projections, poised to reap rewards from upcoming projects. Energy Transfer’s solid fiscal discipline and growth enable ongoing distribution hikes—an enticing proposition for discerning investors.

Affordable Investments Amid High Valuations

While the broader market commands sky-high valuations, these strategic investments offer a path to growth and income without breaking the bank. Alphabet, Realty Income, and Energy Transfer each present an opportunity to realize meaningful returns with a modest $500 investment. According to The Motley Fool, these selections might just be your ticket to tapping untapped market potential.