2 Dirt Cheap Stocks to Buy With $5,000 Right Now

Understand this faster with AI
By Will Healy – Feb 22, 2026 at 5:25AM ESTKey PointsThis real estate stock gives new meaning to "dirt" cheap when comparing the stock price with its FFO income.Investors should consider the low forward P/E ratio when considering this Berkshire Hathaway holding.These 10 Stocks Could Mint the Next Wave of Millionaires ›NYSE: ORealty IncomeMarket Cap$61BToday's Changeangle-down(0.92%) $0.60Current Price$66.10Price as of February 20, 2026 at 3:58 PM ETThese stocks are inexpensive right now, but that is only apparent upon closer inspection.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. Image source: Getty Images. 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 +0.92%). 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. ExpandNYSE: ORealty IncomeToday's Change(0.92%) $0.60Current Price$66.10Key Data PointsMarket Cap$61BDay's Range$65.51 - $66.3652wk Range$50.71 - $66.73Volume203KAvg Vol6.5MGross Margin48.14%Dividend Yield4.88% 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 +1.16%) 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 +0.69%). 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. ExpandNYSE: STZConstellation BrandsToday's Change(1.16%) $1.80Current Price$156.44Key Data PointsMarket Cap$27BDay's Range$153.65 - $157.5952wk Range$126.45 - $196.91Volume46KAvg Vol2.7MGross Margin51.17%Dividend Yield2.61% 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.Read NextFeb 19, 2026 •By Reuben Gregg Brewer2 No-Brainer Dividend Stocks to Buy Right NowFeb 17, 2026 •By John Ballard2 No-Brainer Dividend Stocks to Buy Right NowFeb 14, 2026 •By Will HealyThis Robinhood Stock Has a Trailing 5% Dividend Yield -- Is It Too Good to Be True?Feb 14, 2026 •By Dave Kovaleski3 Stocks That Cut You a Check Each MonthFeb 13, 2026 •By David DierkingHere's How Many Shares of Realty Income You'd Need for $10,000 in Yearly DividendsFeb 11, 2026 •By Lawrence Rothman, CFA2 Dividend Stocks to Double Up on Right NowAbout the AuthorWill Healy is a contributing Motley Fool stock market analyst covering technology and consumer goods industries.
Before The Motley Fool, Will was a freelance writer covering stocks and personal finance for MSN Money, Yahoo! Finance, and Nasdaq. Earlier in his career, he was an expert in geographic information systems, applying spatial and IT skills to perform RF and demographic analysis in the telecom industry. He holds a bachelor’s degree in journalism from Texas A&M University and an MBA in finance and strategy from the University of Texas at Dallas.TMFWillHealyX@HealyWritingStocks MentionedRealty IncomeNYSE: O$66.10 (+0.92%) $+0.60S&P 500 IndexSNPINDEX: ^GSPC$6909.51 (+0.69%) $+47.62Berkshire HathawayNYSE: BRKA$746500.01 (+0.05%) $+400.01Constellation BrandsNYSE: STZ$156.44 (+1.16%) $+1.80Berkshire HathawayNYSE: BRKB$497.69 (+0.15%) $+0.75*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.
Source Information
Discussion
0 professional contributions
Sign in to join this professional discussion.
Be the first to add a constructive contribution.
