In this article, we will take a look at some low P/E high dividend stocks to invest in.
A low price-to-earnings (P/E) ratio often indicates that a stock may be undervalued compared to its earnings, which makes it appealing to investors who want to buy into a company at a fair price relative to its profit potential. Stocks that combine a low P/E ratio with solid dividend payouts tend to attract those seeking both value and income.
Historically, such stocks have delivered strong performance. A report from Heartland Advisors pointed out that companies with low P/E ratios have generally outperformed the broader market while offering investors less downside risk than many other equity strategies.
Looking ahead to 2026, Strategas Securities’ technical strategist Todd Sohn and Allspring Global Investments’ senior portfolio manager Bryant VanCronkhite both believe it makes sense for investors to start shifting their focus toward value-oriented opportunities. Sohn mentioned that while these stocks may not make up the bulk of a portfolio, the areas of the market that have not participated in recent gains and have been stuck in narrow trading ranges for years now offer attractive potential. He added that this situation “leaves us with lots of opportunities outside of tech.” Given this, we will take a look at some of the best dividend stocks.
Photo by nathan dumlao on Unsplash
Our Methodology
To compile this list, we filtered for dividend stocks with a forward P/E ratio below 25 and dividend yields exceeding 4% as of October 14. From that group, we chose companies with a proven track record of consistently paying dividends to their shareholders. Next, we further refined our selection criteria by identifying stocks with a projected upside potential of over 10% based on analyst price targets, as of October 14. The stocks are ranked according to their upside potential.
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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
11. The Clorox Company (NYSE:CLX)
Analyst Upside Potential as of October 14: 10.01%
The Clorox Company (NYSE:CLX) manufactures and markets a wide range of consumer and professional products. While it has long been a favorite among investors, its appeal seems to have waned lately.
On October 10, JPMorgan analyst Andrea Teixeira reduced the firm’s price target for The Clorox Company (NYSE:CLX) from $135 to $127 while maintaining a Neutral rating. In Q3 outlook for the household, personal care, and beauty sector, she noted that many large-cap firms in this space are expected to post another weak quarter due to subdued consumer demand in the US and slowing trends across Western Europe. The situation is being made worse as retailers continue to scale back their inventories.
Even so, The Clorox Company (NYSE:CLX) dividend record remains a bright spot. The company has raised its dividend for 22 straight years and reported solid cash flow in 2024, with net cash from operations reaching $981 million, up 41% from $695 million in the prior fiscal year. It currently offers a quarterly dividend of $1.24 per share and has a dividend yield of 4.16%, as of October 14.
10. Kimberly-Clark Corporation (NASDAQ:KMB)
Analyst Upside Potential as of October 14: 10.7%
Kimberly-Clark Corporation (NASDAQ:KMB) is one of the best dividend stocks with a low P/E and a high dividend yield.
On October 9, Jefferies began covering Kimberly-Clark Corporation (NASDAQ:KMB) with a Hold rating and a price target of $130. The firm highlighted that the company has tripled its natural gas backlog since 2023 and holds significant exposure to LNG and Southeast power demand, both seen as positive drivers for the company.
Even so, Jefferies noted that much of this optimism already appears reflected in the stock’s valuation, which trades at about 10.5 times its projected FY2028 EV/EBITDA, compared to the industry average of roughly 9 times. The firm implied that stronger drivers of growth would be required to support a more optimistic stance.
That said, Kimberly-Clark Corporation (NASDAQ:KMB)’s dividend remains one of its strongest appeals. The company has increased its dividend for 52 straight years and currently offers a yield of 4.19%. It currently pays a quarterly dividend of $1.26 per share.
Kimberly-Clark Corporation (NASDAQ:KMB) is a global consumer goods company known for its everyday disposable products such as diapers, tissues, and paper towels. Its popular brands are sold in over 175 countries through major retailers, supermarkets, and online platforms.
9. Franklin Resources, Inc. (NYSE:BEN)
Analyst Upside Potential as of October 14: 12.48%
Franklin Resources, Inc. (NYSE:BEN) operates as a holding company that provides investment management and related financial services through several well-known brands. The firm has recently drawn attention from analysts, who see a potential upside of around 13% in the stock.
On October 3, BMO Capital Markets recently began coverage of Franklin Resources, Inc. (NYSE:BEN) with an Outperform rating and a $26 price target, citing the company’s strong core business and growing alternatives platform as key strengths. The firm noted that Franklin’s net flows outside of Western Asset Management (WAM) have been robust, and fundraising activity at Lexington continues to show solid momentum.
Along with its business fundamentals, Franklin Resources, Inc. (NYSE:BEN)’s dividend performance remains a major highlight. The company has increased its dividend for 49 consecutive years, making it one of the more reliable dividend payers in the sector.
In addition, on October 3, Franklin Resources, Inc. (NYSE:BEN) reported preliminary month-end assets under management (AUM) of $1.66 trillion as of September 30, 2025, up from $1.64 trillion at the end of August. The monthly change reflected favorable market conditions, partially offset by long-term net outflows of $11 billion, which included $13 billion in outflows from WAM. Excluding that unit, the firm recorded $2 billion in long-term net inflows.
8. Enterprise Products Partners L.P. (NYSE:EPD)
Analyst Upside Potential as of October 14: 12.84%
Enterprise Products Partners L.P. (NYSE:EPD) ranks among the largest midstream oil and gas companies in North America. The midstream sector plays a vital role in linking upstream production with downstream refining and chemical processing. Essentially, Enterprise operates its pipelines like a toll system, transporting energy products between the two ends of the industry’s supply chain.
On October 9, Stifel reaffirms its Buy rating and $35 price target on Enterprise Products Partners L.P. (NYSE:EPD). The firm revised its estimates for the energy infrastructure company to reflect lower-than-expected utilization at its propane dehydrogenation (PDH) plants and a decline in crude oil export volumes.
The updated analysis also factors in Enterprise’s $580 million acquisition of Midland gathering assets, marking a notable expansion of its midstream operations.
While Stifel adjusted some of its operational forecasts, the firm kept its overall rating and target unchanged, noting that Enterprise Products Partners L.P. (NYSE:EPD) remains a strong player in the energy infrastructure sector despite facing some short-term operational headwinds.
In other news, Enterprise Products Partners L.P. (NYSE:EPD) declared a quarterly dividend of $0.545 per share on October 8, which was in line with its previous dividend. Overall, it has raised its payouts for 27 years in a row, which makes EPD one of the best dividend stocks. The stock has a dividend yield of 7.08%, as of October 14.
7. Bristol-Myers Squibb Company (NYSE:BMY)
Analyst Upside Potential as of October 14: 16.4%
Bristol-Myers Squibb Company (NYSE:BMY) is a global pharmaceutical company. It announced on October 10 that it will acquire privately held cell therapy developer Orbital Therapeutics for $1.5 billion in cash, in an effort to diversify away from older products that are now facing competition from generics.
The acquisition broadens Bristol-Myers Squibb Company (NYSE:BMY)’s CAR T-cell immunotherapy portfolio through Orbital’s lead experimental therapy, OTX-201, which is designed to treat autoimmune diseases.
This is the company’s first major acquisition of the year and reflects its strategy to move beyond established blockbusters, such as the blood thinner Eliquis and cancer drug Revlimid, while assuring investors that its newer therapies can support long-term growth.
Alongside its expansion efforts, Bristol-Myers Squibb Company (NYSE:BMY) also maintains a consistent dividend record, having increased its payouts for 16 consecutive years. The company offers a quarterly dividend of $0.62 per share and has a dividend yield of 5.66%, as of October 14.
6. Canadian Natural Resources Limited (NYSE:CNQ)
Analyst Upside Potential as of October 14: 17.39%
Canadian Natural Resources Limited (NYSE:CNQ) is involved in the exploration, development, marketing, and production of crude oil and natural gas. It holds a portfolio of high-quality assets, maintains a sustainable payout ratio, and generates strong cash flow, all of which contribute to its reputation as a dependable dividend stock.
With solid financial strength, Canadian Natural Resources Limited (NYSE:CNQ) has the ability to pursue large strategic acquisitions during periods of low energy prices. These moves help expand reserves and position the company for stronger cash flow once commodity prices recover. CNRL effectively reallocates capital across its asset base to capitalize on favorable shifts in oil and gas markets. Its low-cost operations also allow it to maintain healthy margins even when oil prices come under pressure.
In terms of shareholder returns, Canadian Natural Resources Limited (NYSE:CNQ) stands out in the sector for having increased its dividend payments for 25 straight years. The company currently offers a quarterly dividend of C$0.5875 per share and has a dividend yield of 5.51%, as of October 14. It is among the best dividend stocks according to analysts, with an upside potential of 17.39%.
5. Kenvue Inc. (NYSE:KVUE)
Analyst Upside Potential as of October 14: 21.7%
Kenvue Inc. (NYSE:KVUE) is among the best dividend stocks according to analysts, with an upside potential of nearly 22%.
On October 14, Albert Invent announced a strategic partnership with Kenvue Inc. (NYSE:KVUE) aimed at enhancing research and development efforts across Kenvue’s global brand portfolio. Through this collaboration, Kenvue plans to streamline, digitize, and speed up its entire product development lifecycle by using Albert Invent’s advanced AI technology.
Albert Invent, recognized as a leading AI-driven platform for accelerating innovation in materials science, began working with Kenvue Inc. (NYSE:KVUE) in the first quarter of 2025 under a multi-year agreement. The partnership is designed to bring value to scientists by simplifying and optimizing hundreds of R&D processes worldwide. By integrating Albert Invent’s AI capabilities, KVUE seeks to boost the productivity of its global scientific teams, creating efficiencies inside and outside the lab while better responding to changing consumer demands. Dave Lutness, Head of R&D Digital Capabilities and Platforms at Kenvue, made the following comment about this development:
“While we have many digitally-led initiatives, our collaboration with Albert Invent is 100% focused on enhancing how our scientists create products for our consumers. With the expertise both at Kenvue and with Albert Invent, we are integrating AI into the work we do every day, in service of our brands that billions of people have come to find essential in their lives.”
Kenvue Inc. (NYSE:KVUE), which was spun off from Johnson & Johnson in 2023, has carried forward J&J’s impressive dividend growth legacy that now spans 63 consecutive years. KVUE currently offers a quarterly dividend of $0.2075 per share for a dividend yield of 5.14%, as of October 14.
4. Eastman Chemical Company (NYSE:EMN)
Analyst Upside Potential as of October 14: 21.8%
Eastman Chemical Company (NYSE:EMN) is an American chemical products manufacturing company. On October 2, Jefferies revised its price target for Eastman Chemical (NYSE:EMN) to $78 from $81 while keeping a Buy rating on the stock.
The firm attributed the adjustment to persistent macroeconomic uncertainty, suggesting that demand challenges are likely to continue through the end of 2024. Jefferies pointed out some areas of resilience within Eastman Chemical Company (NYSE:EMN)’s operations, particularly in the personal care, aerospace and defense, and water treatment segments. However, it expects cyclical markets to remain under pressure.
While the firm sees limited signs of a broad economic recovery in the near term, it mentioned that potential tailwinds from possible interest rate cuts could start to emerge in the second half of 2025.
Jefferies also anticipates that Eastman Chemical Company (NYSE:EMN)’s earnings per share will benefit from ongoing cost reductions and the scaling up of its methanolysis facilities, which are expected to strengthen results despite the difficult environment.
Eastman Chemical Company (NYSE:EMN)’s dividend remains another highlight, with the company increasing its payouts for 15 straight years, continuing its commitment to shareholder returns. It currently offers a quarterly dividend of $0.83 per share and has a dividend yield of 5.48%, as of October 14.
3. Hormel Foods Corporation (NYSE:HRL)
Analyst Upside Potential as of October 14: 22.9%
Hormel Foods Corporation (NYSE:HRL), best known for its iconic Spam brand, also owns a strong line-up of leading food labels with a major emphasis on protein products. Despite the global shift toward higher protein consumption, the company’s stock has fallen more than 24% since the beginning of 2025.
The decline followed Hormel Foods Corporation (NYSE:HRL)’s fiscal Q3 2025 results, which came in below expectations. The company reported adjusted earnings per share of $0.35 on $3.03 billion in sales, missing analysts’ estimates by $0.06. While organic sales rose 6% year over year and total revenue increased 4.5%, investors were discouraged by the company’s weaker forward guidance.
For the current quarter, Hormel Foods Corporation (NYSE:HRL) expects revenue between $3.15 billion and $3.25 billion, compared with $3.1 billion in the same period last year. Organic net sales are forecasted to grow 1% to 4%, signaling a clear slowdown from the previous quarter’s pace.
Even with the recent challenges, Hormel Foods Corporation (NYSE:HRL)’s dividend remains a bright spot for investors. The company has raised its payout for 59 consecutive years, maintaining its reputation as a reliable income stock. Currently, it pays a quarterly dividend of $0.29 per share and has a dividend yield of 4.85%, as of October 14.
2. Amcor plc (NYSE:AMCR)
Analyst Upside Potential as of October 14: 29.01%
A global packaging leader, Amcor plc (NYSE:AMCR), is among the best dividend stocks according to analysts, with an upside potential of over 29%.
On October 10, Stifel upgraded Amcor plc (NYSE:AMCR) from Hold to Buy and revised its price target to $10.20 from $10.83. The upgrade came after Amcor’s merger with Berry on April 30, 2025, forming a major consumer packaging company with combined annual revenues of $23 billion. Stifel highlighted that the merger is expected to yield $530 million in cost synergies, $60 million in growth synergies, and $60 million in financial synergies.
The firm acknowledged that realizing these benefits will be challenging, especially given both companies’ limited track records of organic growth. However, Stifel believes that recent weak performance has already lowered expectations to more realistic levels.
Stifel now estimates that $355 million in total cost synergies will be achieved by 2028, which should support margin expansion, stronger free cash flow, and a projected 9% compound annual growth rate in adjusted EPS from 2025 to 2028.
This improved cash flow outlook positions Amcor plc (NYSE:AMCR) well to sustain its dividend payments comfortably. The company has already raised its payouts for 41 consecutive years and currently offers a quarterly dividend of $0.1275 per share. As of October 14, the stock has a dividend yield of 6.30%.
1. Comcast Corporation (NASDAQ:CMCSA)
Analyst Upside Potential as of October 14: 37.4%
Comcast Corporation (NASDAQ:CMCSA) is a major American multinational company involved in media, entertainment, and telecommunications. Its shares have fallen by nearly 20% since the beginning of 2025.
On October 3, KeyBanc Capital Markets cut its price target for Comcast Corporation (NASDAQ:CMCSA) from $45 to $43 but maintained an Overweight rating. The firm expressed caution about the company’s third-quarter outlook, pointing to sluggish broadband subscriber growth amid rising competition. It expects fixed wireless and fiber net additions to show both quarterly and yearly increases.
Even so, KeyBanc views Comcast Corporation (NASDAQ:CMCSA)’s valuation as “quite compelling,” despite the absence of near-term catalysts for stronger broadband or financial performance. The firm acknowledged that Comcast is enhancing the competitiveness of its bundled offerings with new pricing and packaging strategies, though the impact of these efforts may take time to show.
KeyBanc also expects notable growth in the company’s Theme Park division, supported by the ongoing expansion of the Epic Universe project. The analysts added that at current valuation levels, the market is effectively assigning no value to the company’s Content and Experiences segment.
Over the years, Comcast Corporation (NASDAQ:CMCSA)’s dividend has also continued to attract income-focused investors. The company currently offers a quarterly dividend of $0.33 per share and has a dividend yield of 4.40%, as of October 14. It is among the best dividend stocks to invest in as the company holds a 21-year streak of consistent dividend growth.
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.
READ NEXT: 12 Best Dividend Stocks With Yields Above 4% and 12 Reliable Dividend Stocks for Maximum Income.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
Hedge Fund Resource Center