In this article, we will take a look at some of the most undervalued dividend stocks to buy according to Wall Street Analysts.
Investors often face the choice between putting their money into growth stocks or value stocks. Historically, both approaches have delivered similar overall performance, but long-term studies suggest that value investing has provided greater benefits.
Research by Josef Lakonishok, Andrei Shleifer, and Robert W. Vishny, published in the Journal of Finance, found that value-oriented strategies generally produce higher returns. Their study covering April 1968 to April 1990 showed that strategies focused on buying undervalued stocks consistently outperformed those targeting trendy or high-flying growth stocks.
The study also highlighted that value stocks usually offer higher dividend yields and stronger fundamental metrics compared with growth stocks.
Even in today’s market, value investing remains popular among both experienced and new investors. Snowflake CEO Sridhar Ramaswamy recently made the following comment:
“My focus very much is on value creation. We have to earn dollars, every single dollar at a time, so we are focused on the quarter, focused on the year, but, much more, also on the value that we create with customers, or the long term, the stock market will settle itself.”
Given this, we will take a look at some of the most undervalued dividend stocks.
Our Methodology
For this article, we screened for stocks with forward P/E ratios below 30, which typically indicates that the company’s stock price is relatively low compared to its earnings per share (EPS). From that list, we picked dividend companies with a projected upside potential of over 10% based on analyst price targets, as of October 29. 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).
13. CVS Health Corporation (NYSE:CVS)
Upside Potential as of October 29: 10.12%
Forward P/E Ratio: 10.72
CVS Health Corporation (NYSE:CVS) is a diversified healthcare company that runs pharmacies and retail stores while offering various health services, such as prescription management, vaccinations, and diagnostic testing.
On October 24, UBS increased its price target on CVS Health Corporation (NYSE:CVS) from $79 to $96 and reiterated a Buy rating on the stock.
In its third-quarter 2025 earnings report, CVS Health Corporation (NYSE:CVS) posted revenues of $102.8 billion, marking a 7.8% increase compared to the previous year. The company generated $7.2 billion in cash flow from operations year-to-date and updated its full-year guidance to a range of $7.5 billion to $8.0 billion, up from the earlier estimate of at least $7.5 billion.
CVS Health Corporation (NYSE:CVS) is also recognized for its consistent dividend payments, having distributed regular dividends to shareholders since 1997. The company offers a quarterly dividend of $0.665 per share and has a dividend yield of 3.30%, as of October 29.
12. Consolidated Edison, Inc. (NYSE:ED)
Upside Potential as of October 29: 10.21%
Forward P/E Ratio: 16.26
Consolidated Edison, Inc. (NYSE:ED) is a utility company that delivers electricity, gas, and steam to customers across the New York City area. It serves approximately 3.7 million electric and 1.1 million gas customers and operates the largest steam system in the United States.
On October 27, Wells Fargo analyst Shahriar Pourreza began coverage of Consolidated Edison, Inc. (NYSE:ED) with an Equal Weight rating and a $99 price target. The firm initiated coverage on the broader power and utilities sector with 19 Overweights and 14 Equal Weights. The firm noted a preference for companies with growth prospects “actually driving earnings higher” or those trading at valuations “not necessarily reflecting fundamentals.”
Wells Fargo added that utilities are “materially undervalued” amid a “perfect storm of tailwinds” that is “much more structural in nature than cyclical.”
On October 16, Consolidated Edison, Inc. (NYSE:ED) announced a quarterly dividend of $0.85 per share, consistent with its previous payout. The company has now increased its dividend for 51 consecutive years. The stock supports a dividend yield of 3.51%, as of October 29.
11. Emerson Electric Co. (NYSE:EMR)
Upside Potential as of October 29: 10.38%
Forward P/E Ratio: 20.33
Emerson Electric Co. (NYSE:EMR) is a technology and software firm that delivers automation solutions, engineering services, and software to various industries, including process and hybrid sectors.
On October 16, RBC Capital increased its price target on Emerson Electric Co. (NYSE:EMR) to $155 from $154 and maintained an Outperform rating. The adjustment came as part of a broader research note ahead of Q3 earnings in the industrial sector.
According to the analyst, several long-term drivers such as electrification, reshoring, and growth in datacenter and AI infrastructure, along with an expected easing cycle from the Federal Reserve, are likely to support steady mid-cycle growth and solid earnings visibility. While tariffs pose some uncertainty, they remain a manageable challenge. The report also noted that datacenters continue to be the sector’s strongest area, followed by municipal water, whereas residential construction, HVAC, and chemicals are among the weaker markets.
Emerson Electric Co. (NYSE:EMR) is also recognized for its strong dividend track record, maintaining one of the longest dividend growth streaks in its industry, spanning 67 years. The company offers a quarterly dividend of $0.5275 per share and has a dividend yield of 1.55%, as of October 29.
10. McDonald’s Corporation (NYSE:MCD)
Upside Potential as of October 29: 11.10%
Forward P/E Ratio: 22.62
McDonald’s Corporation (NYSE:MCD) is among the most undervalued dividend stocks according to analysts.
On October 27, Mizuho began coverage of McDonald’s Corporation (NYSE:MCD) with a Neutral rating and a $300 price target. The firm mentioned that an “aggressive value strategy” is being implemented to improve traffic trends at McDonald’s, but also pointed out that this approach could limit the company’s US margin visibility. Mizuho stated that the stock’s current valuation “correctly reflects the above dynamic.”
In other news, on October 23, McDonald’s Corporation (NYSE:MCD) announced a 5% increase in its quarterly dividend to $1.86 per share. With this raise, the company extended its dividend growth streak to 49 consecutive years, placing it just one year away from earning the title of a Dividend King. The stock has a dividend yield of 2.46%, as of October 29.
9. Bank of America Corporation (NYSE:BAC)
Upside Potential as of October 29: 11.22%
Forward P/E Ratio: 11.85
Bank of America Corporation (NYSE:BAC) is a global financial institution that offers an extensive range of services, including banking, investment, asset management, and various financial solutions for individuals, companies, and organizations.
Wells Fargo lifted its price target on Bank of America Corporation (NYSE:BAC) to $62 from $60 while maintaining an Overweight rating on the stock. The firm anticipates that the bank will introduce a new return on tangible common equity (ROTCE) target of 16% to 18% at its upcoming investor day on November 5, reflecting confidence in its ability to better capitalize on its strong franchise.
On October 23, Bank of America Corporation (NYSE:BAC) announced a quarterly dividend of $0.28 per share, consistent with its prior payout. Overall, the company has raised its payouts for 11 consecutive years. As of October 29, the stock has a dividend yield of 2.13%.
8. Automatic Data Processing, Inc. (NASDAQ:ADP)
Upside Potential as of October 29: 12.16%
Forward P/E Ratio: 26.53
Automatic Data Processing, Inc. (NASDAQ:ADP) is a New Jersey-based provider of human resource management software and services, with a strong focus on technology-driven innovation, global growth, and outsourcing solutions.
On October 29, Automatic Data Processing, Inc. (NASDAQ:ADP) announced the acquisition of Pequity, a compensation management software firm established in 2019. The deal is expected to enhance ADP’s suite of tools designed to meet the complex compensation planning requirements of mid-sized, enterprise, and multinational clients.
Sreeni Kutam, president of Global Product and Innovation at ADP, made the following comment:
“From changing pay transparency laws and regulations to the growing need for deeper insights and analytics, employers today need flexible compensation solutions to help them address the dynamic talent market and make informed pay decisions. We are excited to welcome the Pequity team to ADP and will leverage the deep expertise across both teams to further innovate and address the evolving compensation management landscape.”
Automatic Data Processing, Inc. (NASDAQ:ADP) is also known for its consistent dividend growth, having increased its payouts for 50 consecutive years. The company offers a quarterly dividend of $1.54 per share and has a dividend yield of 2.36%, as of October 29.
7. Accenture plc (NYSE:ACN)
Upside Potential as of October 29: 13.54%
Forward P/E Ratio: 17.64
Accenture plc (NYSE:ACN) is a global professional services firm offering consulting, technology, digital, and operational solutions to businesses across various industries. It is among the most undervalued dividend stocks according to analysts.
On October 23, Citi began coverage of Accenture plc (NYSE:ACN) with a Neutral rating and a $266 price target. The firm noted that demand for IT services remains subdued, with limited discretionary spending, though growth from Accenture’s ecosystem partners is helping to offset some of that weakness.
In other news, on October 29, Accenture plc (NYSE:ACN) announced an investment in Lyzr, an AI company that has built a full-stack enterprise agent infrastructure platform. Through Accenture Ventures, the two firms plan to collaborate on bringing agentic AI solutions to clients in the banking, insurance, and financial services sectors. By integrating Lyzr’s AI-driven tools, Accenture aims to help businesses uncover new efficiencies, enhance workflows, and reshape how they serve customers.
Accenture plc (NYSE:ACN) also remains appealing to income-focused investors, having increased its dividend payouts for 15 consecutive years. The stock has a dividend yield of 2.63%, as of October 29.
6. Analog Devices, Inc. (NASDAQ:ADI)
Upside Potential as of October 29: 15.01%
Forward P/E Ratio: 25.71
Analog Devices, Inc. (NASDAQ:ADI) designs and produces integrated circuits (ICs), software, and subsystems that process real-world data, supporting technologies across industries such as automotive, communications, healthcare, and industrial automation.
On October 21, ASE Technology Holding Co. and Analog Devices, Inc. (NASDAQ:ADI) announced a strategic collaboration in Penang, Malaysia, marked by the signing of a binding Memorandum of Understanding (MoU).
Under the proposed agreement, ASE plans to acquire 100% of the equity in Analog Devices Sdn. Bhd., which includes ADI’s manufacturing facility in Penang. Alongside this, the two companies intend to establish a long-term supply agreement, allowing ASE to provide manufacturing services for ADI.
Vivek Jain, Executive Vice President of Global Operations & Technology at ADI, made the following comment:
“We are teaming up with ASE to expand the Penang factory’s capability and capacity. This strengthens our technology offering and supply chain resiliency as we continue to offer best-in-class support for our customers. The joint effort will leverage the companies’ expertise to foster growth of technology and manufacturing in the Penang facility and enable continued career opportunities for employees.”
Both firms also plan to jointly invest in developing and upgrading the Penang facility’s capabilities.
5. Baker Hughes Company (NASDAQ:BKR)
Upside Potential as of October 29: 16.50%
Forward P/E Ratio: 17.21
Baker Hughes Company (NASDAQ:BKR) is an energy technology firm that delivers equipment, services, and innovative solutions to clients across the energy and industrial sectors. It is among the most undervalued dividend stocks to buy, according to analysts.
On October 28, Citi analyst Scott Gruber cut the firm’s price target on Baker Hughes Company (NASDAQ:BKR) to $55 from $56 while maintaining a Buy rating on the stock. The analyst described the company’s third-quarter performance as solid but noted that investors were let down by the absence of a strategic update.
In its third-quarter 2025 results, Baker Hughes Company (NASDAQ:BKR) reported revenue of $7 billion, reflecting a 1% increase year over year. The company generated $929 million in operating cash flow and $699 million in free cash flow, which has supported four consecutive years of dividend growth. Currently, it offers a quarterly dividend of $0.23 per share and has a dividend yield of 1.90%, as of October 29.
4. Church & Dwight Co., Inc. (NYSE:CHD)
Upside Potential as of October 29: 16.65%
Forward P/E Ratio: 23.36
Church & Dwight Co., Inc. (NYSE:CHD) is a New Jersey-based consumer goods company specializing in personal care, household, and specialty products.
On October 21, Oppenheimer lowered its price target on Church & Dwight Co., Inc. (NYSE:CHD) to $100 from $115 while maintaining an Outperform rating on the stock. Ahead of upcoming consumer staples earnings, the firm revised its outlook on the sector and select companies. Consistent with its views over recent quarters, Oppenheimer continues to highlight challenges in the broader CPG space, including limited pricing power for many companies, GLP-1 risks affecting food brands, ongoing focus by major retailers on private-label products, tariff concerns, and changing consumer preferences.
That said, the company’s dividend history has always remained strong. On October 27, Church & Dwight Co., Inc. (NYSE:CHD) announced a quarterly dividend of $0.295 per share, which fell in line with its previous payout. The company has increased dividends for 29 consecutive years and has paid regular dividends for 124 years. As of October 29, the stock has a dividend yield of 1.44%.
3. The Cigna Group (NYSE:CI)
Upside Potential as of October 29: 17.12%
Forward P/E Ratio: 9.14
The Cigna Group (NYSE:CI) is an American multinational company offering managed healthcare and insurance services.
On October 27, JPMorgan maintained an Overweight rating on The Cigna Group (NYSE:CI) following an announcement from its Evernorth unit about a new model for Express Scripts commercial customers starting in 2027. This model eliminates rebates and introduces a point-of-sale approach, where customers pay a net price at the time of dispensing.
According to the analyst, the change addresses several regulatory proposals from recent years and should “de-risk” Express Scripts’ commercial operations. JPMorgan added that Cigna’s shift to a de-linked and rebate-free default offering is a “clear signal that it views this as a viable approach for the broader business.”
The Cigna Group (NYSE:CI) also remains attractive to income-focused investors, having increased its dividend for five consecutive years. The stock has a dividend yield of 2.02%, as of October 29.
2. American Tower Corporation (NYSE:AMT)
Upside Potential as of October 29: 29.6%
Forward P/E Ratio: 26.3
American Tower Corporation (NYSE:AMT) owns, acquires, and develops communications real estate, such as cell towers and data centers, across both domestic and international markets. The company primarily generates revenue by leasing space on its properties to wireless carriers and enterprise clients.
On October 29, JPMorgan analyst Richard Choe lowered the price target on American Tower Corporation (NYSE:AMT) to $250 from $255 while maintaining an Overweight rating on the stock. The company posted strong Q3 results and raised its outlook, but management noted during the earnings call that Dish Wireless issued a notice “purporting to be excused from its contractual obligations to American Tower.”
JPMorgan highlighted that EchoStar (SATS) continues to meet its lease payments and that American Tower will record revenue as long as it reasonably expects to collect rent. The analyst added that the Dish notice could weigh on tower stocks.
Despite these challenges, American Tower Corporation (NYSE:AMT) remains one of the strongest dividend payers in the REIT sector, having increased its dividends for 16 consecutive years. The company offers a quarterly dividend of $1.70 per share and has a dividend yield of 3.8%, as of October 29.
1. Carlisle Companies Incorporated (NYSE:CSL)
Upside Potential as of October 29: 47.02%
Forward P/E Ratio: 13.57
Carlisle Companies Incorporated (NYSE:CSL) designs and manufactures a range of energy-efficient and sustainable products for both commercial and residential buildings.
On October 21, Vertical Research analyst Adam Baumgarten began coverage of Carlisle Companies Incorporated (NYSE:CSL) with a Hold rating and a $356 price target.
The company recently reported strong earnings, generating $620 million in free cash flow during the first nine months of the year. Carlisle Companies Incorporated (NYSE:CSL) expects to achieve roughly $1 billion in operating cash flow for the full year. Management reaffirmed its commitment to its Vision 2030 goals of $40 in adjusted EPS and maintaining an ROIC of 25% or higher, which is projected to produce over $6 billion in cumulative free cash flow through 2030.
This robust cash flow has allowed Carlisle Companies Incorporated (NYSE:CSL) to increase its dividends for 49 consecutive years. The company currently pays a quarterly dividend of $1.10 per share and has a dividend yield of 1.82%, as of October 29.
While we acknowledge the potential of CSL 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 CSL and that has 100x upside potential, check out our report about this cheapest AI stock.
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