In this article, we are going to discuss the 13 undervalued dividend aristocrats to buy now.
Dividend strategies remain popular for several reasons. A big part of the appeal is the steady income they can provide. Many investors value that regular stream of cash while continuing to hold their shares.
Dividends can offer some protection against inflation, though the results often depend on the type of company and how consistently it raises its dividend over time. A report by S&P Dow Jones Indices pointed out that, historically, companies in the S&P High Yield Dividend Aristocrats (S&P HYDA) have increased their dividends at a pace that exceeds inflation. These companies have raised their payouts for at least 20 consecutive years, a track record that highlights their ability to grow dividends steadily. The report also mentioned that from 2000 to 2023, the index’s constituents increased their dollar dividends at a compound annual growth rate of 5.18%. Over the same period, the Consumer Price Index (CPI) inflation rate averaged 2.51%. In other words, dividend growth moved well ahead of inflation.
Another report from S&P Dow Jones Indices looked at the role dividends have played in overall market returns. From 1926 to February 2025, dividend income accounted for 31% of the monthly total return of the S&P 500. The rest came from capital appreciation. In some decades, dividends carried even more weight. During the 1940s and the 1970s, dividend income made up more than half of total return. The situation looked different in the 1990s, when dividends represented as little as 14% of total return.
The report also revealed that dividend income played a much larger role during the 2000s, when it accounted for about 68% of total return. In that decade, dividends made up a large share of what investors earned from the market.
With that said, here are the 13 Undervalued Dividend Aristocrats to Invest in.
Photo by Dan Dennis on Unsplash
Our Methodology
To collect data for this article, we scanned the list of the S&P Dividend Aristocrats– the stocks that have raised their payouts for 25 years or more– and identified stocks with low forward P/E ratios. From there, we picked 13 dividend aristocrats with forward P/E ratios of below 25, as of March 9, and ranked them accordingly. We limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. The following are the Cheap Undervalued Dividend Aristocrats to Buy Now.
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. Expeditors International of Washington, Inc. (NYSE:EXPD)
Forward P/E Ratio as of March 9: 24.45
Expeditors International of Washington, Inc. (NYSE:EXPD) provides logistics services in the Americas, North Asia, South Asia, Europe, the Middle East, Africa, and India.
On February 25, JPMorgan upped its price target on Expeditors International of Washington, Inc. (NYSE:EXPD) from $132 to $135, while maintaining an ‘Underweight’ rating on the shares. The target adjustment comes as the analyst firm updated its model following EXPD’s Q4 report.
Expeditors International of Washington, Inc. (NYSE:EXPD) posted its Q4 2025 results on February 24, with its EPS of $1.49 topping estimates by $0.03. The company’s revenue of $2.86 billion also exceeded forecasts by almost $24 million, despite a decline of over 3% YoY.
That said, Expeditors International of Washington, Inc. (NYSE:EXPD) delivered net earnings attributable to shareholders of $201 million for Q4, down 15% compared to the previous year, primarily due to a decline in air freight gross margins and ocean sell rates.
On a more positive note, Expeditors International of Washington, Inc. (NYSE:EXPD) announced on February 24 that its board of directors had authorized a new share repurchase program, permitting the repurchase of up to $3 billion of the company’s common stock.
12. Nordson Corporation (NASDAQ:NDSN)
Forward P/E Ratio as of March 9: 23.92
Nordson Corporation (NASDAQ:NDSN) engineers, manufactures, and markets products and systems to dispense, apply, and control adhesives, coatings, polymers, sealants, biomaterials, medical components, and other fluids.
Nordson Corporation (NASDAQ:NDSN) maintained its strong dividend history by announcing a payout of $0.82 per share on March 5. The dividend is payable on April 3 to shareholders of record as of the close on March 19, 2026. As of the writing of this piece, the stock has an annual dividend yield of 1.20%.
Nordson Corporation (NASDAQ:NDSN) announced its Q1 2026 results last month, with the company’s earnings in line with Wall Street expectations and its revenue exceeding estimates. The firm generated a free cash flow of $123 million during the quarter, resulting in a 105% conversion rate on net income, excluding the non-cash gain. This marks the third consecutive quarter of above 100% conversion for Nordson, despite its high revenue growth.
Nordson Corporation (NASDAQ:NDSN) is entering the second quarter with its backlog increased by approximately 4% compared to last year. The company is targeting its Q2 sales in the range of $710 million to $740 million, while its adjusted earnings for the quarter are forecasted to be in the range of $2.70 to $2.90 per share.
