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.
Image by Alexsander-777 from Pixabay
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.
8. Chubb Limited (NYSE:CB)
Number of Hedge Fund Holders: 55
Chubb Limited (NYSE:CB) ranks among the largest publicly traded property and casualty insurers in the world. In recent years, the company has worked to grow its presence outside of North America, with particular focus on markets in Asia, Latin America, and Europe. Its strategy centers on disciplined underwriting, meaning it takes a careful approach to selecting which risks to insure and how to price them, while also aiming to manage risk across multiple product lines and regions.
In the second quarter of 2025, Chubb Limited (NYSE:CB) reported P&C net premiums written of $12.39 billion, which showed a 5.2% growth from the same period last year. Net income rose to $2.97 billion, marking an increase of 33.1%, while core operating income reached a record high of $2.48 billion, reflecting a 12.9% gain. Property and casualty underwriting income reached a record $1.63 billion, representing a 15.0% increase, while the combined ratio stood at 85.6%.
Chubb Limited (NYSE:CB)’s cash position also remained stable during the quarter. The company’s operating cash flow came in at $3.55 billion and ended the quarter with cash and cash equivalents of $2.4 billion. During the quarter, the company also returned $388 million to shareholders through dividends. In addition, it holds a 32-year streak of consistent dividend growth. The company offers a quarterly dividend of $0.97 per share and has a dividend yield of 1.44%, as of July 25.
7. Lockheed Martin Corporation (NYSE:LMT)
Number of Hedge Fund Holders: 68
Lockheed Martin Corporation (NYSE:LMT) is one of the best oversold dividend stocks. The company has long held a leading position in the US aerospace and defense sector. It supplies advanced technologies and services to the US Department of Defense, NASA, and various international government agencies. Its space division is one of the company’s four key segments. For investors looking for a diversified and established aerospace company with ties to the growing space industry, Lockheed Martin may be a strong addition to their portfolio.
Lockheed Martin Corporation (NYSE:LMT) maintained a strong cash position, reinforcing its appeal as a reliable dividend investment. In the most recent quarter, the company reported an operating cash flow of $201 million. It also returned $1.3 billion to investors through dividends and share repurchases.
On June 26, Lockheed Martin Corporation (NYSE:LMT) declared a quarterly dividend of $3.30 per share, which was consistent with its previous dividend. The company has been rewarding shareholders with growing dividends for the past 22 years. The stock offers a dividend yield of 3.11%, as of July 25.
6. Accenture plc (NYSE:ACN)
Number of Hedge Fund Holders: 69
Accenture plc (NYSE:ACN) is a multinational tech company that offers information technology services and management consulting. The company has recently announced plans to acquire Maryville Consulting Group, a US-based technology consulting firm known for its expertise in product-focused growth strategies, digital operations, and technology business management (TBM). With over 100 professionals, Maryville’s team will become part of Accenture, enhancing its ability to support clients in aligning technology investments with strategic business goals as they pursue transformation.
Accenture plc (NYSE:ACN) reported strong earnings in fiscal Q3 2025. The company posted revenue of $17.7 billion, which showed a 7.6% growth from the same period last year. The company reported quarterly bookings exceeding $100 million, supported by broad-based growth and ongoing expansion of its leadership in generative AI. Management emphasized that businesses are seeking both resilience and tangible outcomes, and the company’s sharp focus on delivering measurable value to clients is driving its growth and strengthening its position in the market.
Accenture plc (NYSE:ACN) also remained strong in terms of cash. The company posted a free cash flow of $3.5 billion and also returned $924 million to shareholders through dividends. It is among the best dividend stocks on our list as the company has paid uninterrupted dividends to shareholders since 2005. Currently, it offers a quarterly dividend of $1.48 per share and has a dividend yield of 2.09%, as of July 25.
5. Abbott Laboratories (NYSE:ABT)
Number of Hedge Fund Holders: 70
Abbott Laboratories (NYSE:ABT) is among the best oversold dividend stocks to invest in. The company reported strong earnings in the second quarter of 2025. It posted revenue of $11.1 billion, which showed a 7.37% growth on a YoY basis. The company reported GAAP diluted earnings per share of $1.01, while adjusted diluted EPS came in at $1.26. Gross margin was 52.7% of sales on a reported basis, with the adjusted gross margin reaching 57.0%, representing a 100 basis point improvement.
Abbott Laboratories (NYSE:ABT) reiterated its guidance and pointed to strong momentum in both its devices and nutrition segments as it moves into the second half of the year. A brief valuation analysis, based on a five-year free cash flow CAGR of 5.74%— calculated using 6% growth in operating cash flow and 2% growth in capital expenditures— suggests that the current share price of $120.51 offers promising return potential.
On June 13, Abbott Laboratories (NYSE:ABT) declared a quarterly dividend of $0.59 per share, which was in line with its previous dividend. This was the company’s 406th consecutive quarterly dividend. In addition, ABT has raised its payouts for 53 years in a row. The stock offers a quarterly dividend of 1.86%, as of July 25.
4. The Cigna Group (NYSE:CI)
Number of Hedge Fund Holders: 74
An American multinational healthcare company, The Cigna Group (NYSE:CI) is among the best dividend stocks to invest in. The company reported solid earnings in the first quarter of 2025, with revenues of $65.4 billion, up 14.3% growth from the same period last year. The revenue also beat analysts’ estimates by $5.07 billion. The company reported shareholders’ net income of $1.3 billion, which translates to $4.85 per share. Adjusted income from operations for the same period was $1.8 billion, or $6.74 per share.
The Cigna Group (NYSE:CI) reported that it is developing a more sustainable healthcare model by effectively fulfilling its commitments and initiatives aimed at enhancing transparency and providing better support for customers and patients. Its strong performance in the first quarter, along with an upgraded full-year earnings outlook, highlights the robustness of its Evernorth Health Services and Cigna Healthcare growth platforms amid a dynamic market environment.
In addition to this, The Cigna Group (NYSE:CI) is also a prominent dividend payer. The company currently pays a quarterly dividend of $1.51 per share, having raised it by 7.9% in January. Through this increase, CI stretched its dividend growth streak to five years. The stock has a dividend yield of 2.04%, as of July 25.
3. Honeywell International Inc. (NASDAQ:HON)
Number of Hedge Fund Holders: 75
Honeywell International Inc. (NASDAQ:HON) is one of the best dividend stocks to invest in. The company has been grabbing investors’ attention due to its strong dividend policy and robust balance sheet. In its recently announced earnings for the second quarter of 2025, the company reported revenue of $10.35 billion, which showed an 8.09% growth from the same period last year. The revenue surpassed analysts’ estimates by $289.2 million.
Honeywell International Inc. (NASDAQ:HON) finalized the $2.2 billion acquisition of Sundyne, announced the £1.8 billion purchase of Johnson Matthey’s Catalyst Technologies division, and completed the $1.3 billion sale of its PPE business. Operating income rose by 7%, while segment profit increased by 8% to reach $2.4 billion, driven primarily by growth in the Building Automation segment.
Honeywell International Inc. (NASDAQ:HON) reported an operating cash flow of $1.3 billion, and its free cash flow was $1 billion, which showed the company’s solid cash position. The company ended the quarter with $10.4 billion available in cash and cash equivalents. HON has raised its payouts for 14 consecutive years and offers a quarterly dividend of $1.13 per share. As of July 25, the stock has a dividend yield of 2.02%.
2. Analog Devices, Inc. (NASDAQ:ADI)
Number of Hedge Fund Holders: 79
Analog Devices, Inc. (NASDAQ:ADI) is among the best oversold dividend stocks. The company designs and sells integrated circuits, software, and subsystems across various industries such as automotive, healthcare, and consumer electronics. Its product lineup features data converters, power management solutions, and MEMS technology. Lately, the company has prioritized innovation by launching new products and forming strategic partnerships, including initiatives like CodeFusion Studio and the ADI Assure Trusted Edge Security Architecture.
In fiscal Q2 2025, Analog Devices, Inc. (NASDAQ:ADI) reported revenue of $2.64 billion, which showed an impressive 22.2% growth from the same period last year. The company’s bookings accelerated across all end markets and regions, leading to continued sequential growth in backlog. The strengthening demand observed throughout the fiscal quarter supports the company’s outlook for ongoing growth in the third quarter and reinforces the belief that the business is experiencing a cyclical upturn.
Analog Devices, Inc. (NASDAQ:ADI)’s cash position remained strong, with operating cash flow of $3.9 billion and free cash flow of $3.3 billion over the trailing twelve months, representing 39% and 34% of revenue, respectively. During the second quarter, the company returned $0.7 billion to shareholders through dividends and share repurchases.
Analog Devices, Inc. (NASDAQ:ADI) has raised its dividend payouts for 21 years in a row. The company offers a quarterly dividend of $0.99 per share and has a dividend yield of 1.74%, as of July 25.
1. Comcast Corporation (NASDAQ:CMCSA)
Number of Hedge Fund Holders: 81
Comcast Corporation (NASDAQ:CMCSA) is among the best dividend stocks to invest in. The company, led by NBC Universal, is a leading creator of content and experiences through its media outlets, studios, and theme parks. It reaches more than 100 million households in the US and continues to have a strong global presence despite already capturing 80% of its domestic audience.
What often goes unnoticed is Comcast Corporation (NASDAQ:CMCSA)’s ability to generate substantial revenue. Its connectivity and platforms division serves 52 million customers, each paying over $100 for cable TV and/or internet services. Approximately half of this revenue contributes directly to the company’s adjusted EBITDA.
Comcast Corporation (NASDAQ:CMCSA) is also a solid dividend payer. It has raised its payouts for 21 consecutive years and currently offers a quarterly dividend of $0.33 per share. As of July 25, the stock has a dividend yield of 3.92%.
While we acknowledge the potential of CMCSA to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CMCSA and that has 100x upside potential, check out our report about this cheapest AI stock.
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