In this article, we will take a look at some of the best oversold dividend stocks.
Since its April low, the S&P 500 Index has climbed nearly 13%, reaching record highs— a positive signal for long-term market trends. Much of this momentum has been fueled by major tech players such as Nvidia and Microsoft. That said, UBS suggested that the ongoing trade tensions under President Donald Trump’s administration could pose a threat to the market’s streak of record highs. David Lefkowitz, who leads US equities at the firm, indicated that the uncertainty surrounding trade policy might weigh on business confidence and potentially postpone interest rate cuts by the Federal Reserve. He noted to clients that the bull market could experience a temporary pause in the near term.
In addition, the leading tech names, along with many others at the forefront of the market, now appear relatively overbought when compared to the broader index. As the rally expands, attention is shifting toward stocks that remain relatively oversold. The utilities sector stands out in this regard, with the PHLX Utility Sector Index recently breaking out to new all-time highs after moving sideways for six months, offering a fresh technical catalyst.
In the current market environment, investors are gravitating toward dividend stocks to maximize returns. Given this, let’s take a look at some of the best dividend stocks that are oversold.
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Our Methodology:
For this list, we used a Finviz stock screener and looked for dividend stocks with a 14-day Relative Strength Index (RSI) below 40 as of July 25. An RSI below 40 suggests that the stock is oversold. From that list, we picked 10 stocks with the highest number of hedge fund investors, as per Insider Monkey’s database of Q1 2025. The stocks are ranked according to the hedge funds having stakes in them.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10. FactSet Research Systems Inc. (NYSE:FDS)
Number of Hedge Fund Holders: 29
FactSet Research Systems Inc. (NYSE:FDS) is among the best oversold dividend stocks. The company’s third-quarter earnings demonstrated the successful implementation of its enterprise solution strategy. With a strong pipeline and growing momentum, it appeared well-positioned to close the fiscal year on a solid note.
FactSet Research Systems Inc. (NYSE:FDS) reported revenue of $585.5 million in fiscal Q3 2025, up 6% from the same period last year. The revenue also beat analysts’ estimates by $4.62 million. As of May 31, 2025, the company’s Annual Subscription Value (ASV) reached $2.33 billion, an increase from $2.2 billion recorded on the same date in 2024. On an organic basis, ASV stood at $2.3 billion, reflecting a year-over-year growth of 4.5%, or $98.5 million.
FactSet Research Systems Inc. (NYSE:FDS)’s cash position also remained strong. The company reported an operating cash flow of $253.8 million and its free cash flow was $228.6 million, both up by 6.5% and 5.4%, respectively. In addition, it returned $41.6 million to shareholders through dividends, which showed the commitment toward its investors.
FactSet Research Systems Inc. (NYSE:FDS) currently offers a quarterly dividend of $1.10 per share, having raised it by 6% in May 2025. This was the company’s 26th consecutive year of dividend growth. The stock has a dividend yield of 1.05%, as of July 25.
9. Kimberly-Clark Corporation (NASDAQ:KMB)
Number of Hedge Fund Holders: 45
Kimberly-Clark Corporation (NASDAQ:KMB) is one of the best oversold dividend stocks. In June, the company announced a strategic partnership with Suzano S.A. to establish a global tissue and professional products company. This move is viewed as a way for Kimberly-Clark to sharpen its focus on higher-growth, higher-margin segments. By combining their strengths and infrastructure, the two companies aim to lower overall product delivery costs and provide both branded and private label solutions across various markets, ultimately benefiting both consumers and customers.
In the first quarter of 2025, Kimberly-Clark Corporation (NASDAQ:KMB) maintained a healthy cash position, generating $327 million in operating cash flow, while capital expenditures reached $204 million. The company remained committed to rewarding shareholders, returning $466 million through dividends and share repurchases. Quarterly revenue stood at $4.84 billion, reflecting a 6% decline compared to the same period the previous year.
Kimberly-Clark Corporation (NASDAQ:KMB) is a Dividend King with 53 consecutive years of dividend growth under its belt. The company offers a quarterly dividend of $1.26 per share and has a dividend yield of 3.97%, as of July 25.
Kimberly-Clark Corporation (NASDAQ:KMB) is known for offering a broad range of everyday household products, including diapers, tissues, and feminine care items. Its portfolio features several popular brands such as Huggies, Kleenex, and Cottonelle.