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 498.7% since May 2014, beating its benchmark by 303 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.
11. Albemarle Corporation (NYSE:ALB)
Forward P/E Ratio as of March 9: 23.70
Albemarle Corporation (NYSE:ALB) operates as a global specialty chemicals company and is best known as the world’s largest producer of lithium, a key material used in electric vehicle batteries. The company is also involved in the bromine and catalyst markets, which helps provide some diversification when lithium prices swing.
On February 27, Albemarle Corporation (NYSE:ALB) declared a quarterly dividend of $0.405 per share. The dividend is payable on April 1 to shareholders of record as of the close of March 13, 2026. The stock currently has an annual dividend yield of 0.97%.
The payout comes after Albemarle Corporation (NYSE:ALB) reported a significant positive free cash flow of nearly $700 million in its Q4 2025 last month, thanks to its solid cash conversion and rightsized capital expenditures, which declined by 65% compared to the same period in 2024. The company intends to continue this momentum by targeting additional cost and productivity improvements of $100 million to $150 million, and stable capital spending in FY 2026.
Moreover, the rising geopolitical and trade tensions are creating an environment in which the Western price of lithium could be notably higher than that in China, which could provide a significant tailwind for Albemarle.
10. Lowe’s Companies, Inc. (NYSE:LOW)
Forward P/E Ratio as of March 9: 19.72
Lowe’s Companies, Inc. (NYSE:LOW) is a home improvement company serving approximately 20 million customers a week in the United States.
On March 10, KGI Securities initiated coverage of Lowe’s Companies, Inc. (NYSE:LOW) with a ‘Neutral’ rating. The analyst assigned the stock a price target of $255, indicating an upside of almost 2% from the current levels.
Lowe’s Companies, Inc. (NYSE:LOW) reported its Q4 2025 results on February 25, with the company beating expectations in both earnings and revenue. However, the firm’s strong quarterly performance was overshadowed by its guidance for FY 2026, which came in below consensus. Lowe’s is targeting its total sales for the year to be $93 billion at the midpoint, below the consensus estimate of $93.28 billion. Moreover, the company expects its adjusted earnings to be in the range of $12.25 to $12.75 per share, against Wall Street expectations of $12.94.
Lowe’s Companies, Inc. (NYSE:LOW) was recently included in our list of the 13 Best Long-Term Dividend Stocks to Invest in Right Now.
9. AbbVie Inc. (NYSE:ABBV)
Forward P/E Ratio as of March 9: 15.82
AbbVie Inc. (NYSE:ABBV) is a research-based biopharmaceutical company that engages in the research and development, manufacturing, commercializing, and sale of medicines and therapies worldwide.
On March 9, AbbVie Inc. (NYSE:ABBV) reported encouraging results from a phase 1 study of its ABBV-295 drug, a long-acting amylin analog for treating obesity. The study led to significant weight loss at weekly, bi-weekly, and monthly dosing schedules among adult candidates.
The average weight loss ranged from -7.75% to -9.79% at week 12 with weekly dosing. Meanwhile, the weight loss averaged between -7.86% to -9.73% at week 13 with every other week dosing, followed by monthly dosing after week five. Notably, the drug was generally well tolerated across all dose levels, with the most common side effects being gastrointestinal in nature and mild.
Primal Kaur, M.D., senior vice president, global development of immunology, neuroscience, eye care, and specialty at AbbVie Inc. (NYSE:ABBV), commented:
“Obesity is a complex, chronic disease that places a substantial burden on patients, healthcare systems and society, and there remains a critical need for therapies that combine efficacy with tolerability and support long-term adherence. We are encouraged by these early results for ABBV-295, which demonstrate meaningful weight loss together with a well-tolerated safety profile. These initial results further reinforce the potential of ABBV-295 as a novel therapeutic option for people living with obesity.”
With a P/E ratio of 15.82 as of the writing of this piece, AbbVie Inc. (NYSE:ABBV) is included among the 12 Best Undervalued Stocks to Invest in Right Now.
8. Brown & Brown, Inc. (NYSE:BRO)
Forward P/E Ratio as of March 9: 15.62
Brown & Brown, Inc. (NYSE:BRO) markets and sells insurance products and services in the United States, the United Kingdom, and internationally.
On February 26, Morgan Stanley reduced its price target on Brown & Brown, Inc. (NYSE:BRO) from $78 to $76, while maintaining an ‘Equal Weight’ rating on the shares. The revised target, which still indicates an upside of 11% from the current share price, comes as the analyst firm adjusted its targets in the property and casualty insurance group following the Q4 earnings season.
Morgan Stanley expects insurance operators with ‘more differentiated’ underwriting performance to attract more investor attention in the market. While the analyst firm projects prices to remain weak and AI headwinds to not abate, it believes that insurers with ‘differentiated’ underwriting and ‘margin durability will be king’.
The share price of Brown & Brown, Inc. (NYSE:BRO) has declined by over 12% since the beginning of 2026. That said, BRO was recently included in our list of the 13 Best Income Stocks with the Highest Upside Potential.
7. Target Corporation (NYSE:TGT)
Forward P/E Ratio as of March 9: 15.11
Next on our list of the Undervalued Dividend Aristocrats is Target Corporation (NYSE:TGT). The company operates as a general merchandise retailer in the United States.
Target Corporation (NYSE:TGT) received a lift on March 10 when DA Davidson raised its price target on the stock from $120 to $140, while maintaining a ‘Buy’ rating on the shares. The revised target, which indicates an upside of over 17% from the current levels, comes as the analyst firm upped its FY26 and FY27 EPS estimates based on Target’s Q4 results and 2026 outlook.
Target Corporation (NYSE:TGT) beat earnings estimates in its Q4 2025 results posted on March 3, but the company’s revenue and customer traffic at its stores continued to decline. However, the firm is in the middle of a turnaround effort and expects its net sales to surge by about 2% YoY in FY 2026, with the aim of growing the metric in every quarter of the year. Target is targeting its full-year adjusted earnings to be in the range of $7.50 to $8.50 per share, compared to $7.57 per share in FY 2025.
6. Medtronic plc (NYSE:MDT)
Forward P/E Ratio as of March 9: 14.97
Medtronic plc (NYSE:MDT) develops, manufactures, and sells device-based medical therapies to healthcare systems, physicians, clinicians, and patients in the United States, Ireland, and internationally.
Medtronic plc (NYSE:MDT) declared a quarterly dividend of $0.71 per share on March 5. The dividend is payable on April 17 to shareholders of record at the close of business on March 27, 2026. Medtronic has increased its annual dividend for the last 48 years and maintains the status of a dividend aristocrat. The stock currently boasts an impressive annual dividend yield of 3.18%.
Medtronic plc (NYSE:MDT) reported better-than-expected results for its Q3 2026 last month, beating estimates in both earnings and revenue. Moreover, the company delivered 6% YoY organic revenue growth, ahead of guidance, demonstrating the strength of its portfolio. This is the highest revenue growth that Medtronic has achieved in ten quarters.
Medtronic plc (NYSE:MDT) aims to deliver organic revenue growth of approximately 5.5% for FY 2026. The company also maintained its adjusted EPS guidance in the range of $5.62 to $5.66 for the year.
5. Brown-Forman Corporation (NYSE:BF-B)
Forward P/E Ratio as of March 9: 14.95
Brown-Forman Corporation (NYSE:BF-B) is a major player in the global spirits industry that engages in the production and distribution of alcoholic beverages.
Brown-Forman Corporation (NYSE:BF-B) had a setback on March 9 when Bernstein downgraded the stock from ‘Outperform’ to ‘Market Perform’, while also cutting its price target from $37.5 to $29. The reduced target still indicates an upside of almost 20% from the current levels.
Bernstein expects Brown-Forman Corporation (NYSE:BF-B)’s margins to suffer from more costly barrelled whisky for longer than initially forecasted. Therefore, the analyst firm sees the stock trading sideways for the foreseeable future.
That said, Brown-Forman Corporation (NYSE:BF-B) reported better-than-expected results for its Q3 2026 earlier this month, exceeding estimates in both earnings and revenue. However, the broader category pressure continues to weigh it down, and the spirits maker expects both its organic net sales and organic operating income to decline in the low-single digit range in full-year 2026.
Brown-Forman Corporation (NYSE:BF-B) was recently included in our list of the 12 Best Alcohol Stocks to Buy Right Now.
4. Becton, Dickinson and Company (NYSE:BDX)
Forward P/E Ratio as of March 9: 12.97
Becton, Dickinson and Company (NYSE:BDX) is one of the world’s largest pure-play medical technology companies in the world. BD drives innovation across medical essentials, connected care, biopharma systems, and interventional.
Becton, Dickinson and Company (NYSE:BDX) announced on March 2 that it had received 510(k) clearance from the FDA for its Surgiphor™ 1000mL irrigation system. The device is designed for powered lavage procedures and provides a standardized, OR-ready solution to help loosen and remove debris and microorganisms from wounds. Moreover, the system comes ready-to-use and completely sterile. This eliminates the need for hospital staff to mix solutions by hand and saves valuable time.
Becton, Dickinson and Company (NYSE:BDX)’s Surgiphor™ portfolio now offers both manual and powered irrigation options, giving doctors the flexibility to match the needs of their workflow and patient population.
Rian Seger, worldwide president of the Surgery business at Becton, Dickinson and Company (NYSE:BDX), stated:
“This FDA clearance reinforces BD’s position as the global leader in surgical irrigation innovation. Surgiphor™ 1000mL is a unique solution that provides the consistency and safety surgical teams expect from BD, allowing them to focus on what matters most: providing better, safer care for their patients.”
Becton, Dickinson and Company (NYSE:BDX) is targeting its adjusted EPS to be in the range of $12.35 to $12.65 for FY 2026, reflecting a 6% growth at the midpoint compared to last year.
3. Chubb Limited (NYSE:CB)
Forward P/E Ratio as of March 9: 11.88
With operations in 54 countries and territories, Chubb Limited (NYSE:CB) provides commercial and personal property and casualty insurance, personal accident and supplemental health insurance, reinsurance, and life insurance to a diverse group of clients.
On February 26, Chubb Limited (NYSE:CB) declared a quarterly dividend of $0.97 per share. The dividend is payable on April 6 to shareholders of record at the close of business on March 13, 2026. On the same day, the company revealed that its Board of Directors would recommend to shareholders at the 2026 Annual General Meeting to increase the quarterly dividend to $1.02 per share. This would mark the insurance provider’s 33rd consecutive annual dividend increase, further cementing its status as a dividend aristocrat.
Chubb Limited (NYSE:CB) is targeting double-digit EPS and tangible book value growth in FY 2026, helped by the company’s diversified global expansion. The firm expects net investment income to range between $1.81 billion and $1.84 billion in the first quarter of 2026.
Chubb Limited (NYSE:CB) currently has an annual dividend yield of 1.20%, and is placed among the 13 Best March Dividend Stocks to Buy.
2. The J. M. Smucker Company (NYSE:SJM)
Forward P/E Ratio as of March 9: 11.25
The J. M. Smucker Company (NYSE:SJM) manufactures and markets branded food and beverage products worldwide.
On February 27, Barclays analyst Andrew Lazar raised the firm’s price target on The J. M. Smucker Company (NYSE:SJM) from $105 to $125, while keeping an ‘Equal Weight’ rating on the shares. The updated target indicates an upside potential of over 15% from the current share price.
The J. M. Smucker Company (NYSE:SJM) reported better-than-expected results for its Q3 2026 on February 26, beating estimates in both earnings and revenue. Notably, the company generated cash provided by operating activities of $558.5 million during the quarter, compared to $239.4 million in the prior year period. Free cash flow also increased by 222% YoY to $487 million.
The J. M. Smucker Company (NYSE:SJM) also updated its outlook for full-year 2026 and now expects its net sales to grow by 3.5% to 4.0% compared to last year, down from its previous guidance of 3.5% to 4.5%. Meanwhile, the company’s expected adjusted earnings for the year remain unchanged at $8.75 – $9.25.
With a robust annual dividend yield of 4.06%, The J. M. Smucker Company (NYSE:SJM) is included among the 14 Value Stocks to Buy with High Dividend Yields.
1. T. Rowe Price Group, Inc. (NASDAQ:TROW)
Forward P/E Ratio as of March 9: 8.90
Topping our list of the Undervalued Dividend Aristocrat Stocks is T. Rowe Price Group, Inc. (NASDAQ:TROW), a publicly owned investment manager. The firm provides its services to individuals, institutional investors, retirement plans, financial intermediaries, and institutions.
On March 6, Evercore ISI lowered its price target on T. Rowe Price Group, Inc. (NASDAQ:TROW) from $106 to $99, but maintained its ‘In Line’ rating on the shares. The revised target, which still reflects an upside potential of almost 11% from the current share price, comes as the analyst firm updated its estimates in the group after an ‘early look’ at February and traditional asset manager flows in the first quarter.
T. Rowe Price Group, Inc. (NASDAQ:TROW) concluded FY 2025 with $1.78 trillion in assets under management (AUM), indicating a 10% growth from the end of FY 2024. The company’s AUM continues to grow and stood at $1.8 trillion at the end of February.
T. Rowe Price Group, Inc. (NASDAQ:TROW) also raised its quarterly dividend by 2.4% to $1.30 per share last month, marking its 40th consecutive year of dividend growth. The stock currently has a robust annual dividend yield of 5.82%.
While we acknowledge the potential of TROW 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 TROW and that has 100x upside potential, check out our report about the cheapest AI stock.
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