11 Undervalued Dividend Aristocrats to Buy Now

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1. Target Corporation (NYSE:TGT)

Forward P/E Ratio as of May 7: 10.36

Target Corporation (NYSE:TGT) is an American retailer known for its chain of discount stores and hypermarkets. The company has positioned itself uniquely by combining affordability with a more refined shopping experience. This approach, supported by its exclusive and private-label products, has earned the company a dedicated customer base. While this strategy has historically driven success, Target is currently facing challenges amid a tougher economic environment and changing consumer preferences, which have put pressure on its sales. Since the beginning of 2025, the stock has dropped more than 29%.

As consumers become more cost-conscious and reduce spending on non-essential, higher-priced goods, Target Corporation (NYSE:TGT) has seen an impact on its revenue. This shift contributed to the company’s weaker financial performance in 2024. For the fiscal year ending February 1, net sales slipped by 0.8% compared to the previous year, and adjusted earnings per share declined by 1% to $8.86.

Despite these headwinds, Target Corporation (NYSE:TGT)’s solid cash flow supports its status as a dependable dividend payer. In FY24, the company generated $7.3 billion in operating cash flow and returned $513 million to shareholders through dividends in the fourth quarter, slightly above the $508 million distributed in the same quarter the year before. In addition, the company has a 53-year track record of dividend growth under its belt. Its quarterly dividend comes in at $1.12 per share and has a dividend yield of 4.62%, as of May 7.

Overall, Target Corporation (NYSE:TGT) ranks first on our list of the best undervalued dividend aristocrats to buy now. While we acknowledge the potential of TGT as an investment, our conviction lies in the belief that some deeply undervalued dividend stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued dividend stock that is more promising than TGT but that trades at 10 times its earnings and grows its earnings at double digit rates annually, check out our report about the dirt cheap dividend stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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