In this article, we will take a look at the 14 Value Stocks to Buy With High Dividend Yields.
Dividend strategies can help increase income potential because they focus on companies that regularly pay dividends. These dividends represent a portion of the company’s profits returned directly to shareholders. For many investors, this creates a steady source of income while they remain invested in the stock.
According to a report by iShares, companies that pay dividends are often more mature and generate stable earnings. This stability allows them to support consistent dividend payments. Since their rapid growth phase is usually behind them, these companies tend to be viewed more as value stocks. They also often trade at a discount compared with the broader market. This differs from many of the largest companies in today’s major stock indexes. Growth companies, especially those developing new technologies like AI, often choose to reinvest profits back into the business. Their focus remains on expansion rather than returning cash directly to shareholders. Because of this stronger growth outlook, these companies often trade at higher price-to-earnings multiples.
Morningstar columnist Dan Lefkovitz also supports dividend investing. He said dividends play a crucial role for investors and noted that more than $1 trillion in global funds and ETFs focus on dividend screening or dividend-weighted strategies. He explained that Morningstar Indexes has built a wide range of dividend-focused indexes over the years. These include indexes targeting high-yield stocks, dividend growth companies, and strategies that combine dividends with share buybacks.
He added that dividend investing provides a reliable way for investors to participate in the equity market. It offers income while also contributing to overall returns. Lefkovitz also said companies with strong economic moats are usually better positioned to maintain their dividend payments. Their competitive advantages help protect earnings and support long-term consistency.
He also pointed to the importance of payout ratios. Companies with higher payout ratios face a greater risk of reducing dividends if earnings come under pressure. In contrast, companies with lower payout ratios often have more flexibility to maintain and grow their dividend payments over time.
Given this, we will take a look at some of the best dividend stocks.
Our Methodology:
We used screeners to identify dividend stocks that are trading below a forward P/E of 20 and have dividend yields above 3%, as of February 27. We limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds.
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).
14. Keurig Dr Pepper Inc. (NASDAQ:KDP)
Dividend Yield as of February 27: 3.04%
On February 26, Barclays raised its price recommendation on Keurig Dr Pepper Inc. (NASDAQ:KDP) to $32 from $30. The firm reiterated an Equal Weight rating on the stock.
CEO Timothy Cofer said 2025 had been a strong year for the company. He noted that Keurig Dr Pepper delivered solid results and met its full-year guidance. He explained that innovation played a key role, along with strong commercial execution. These efforts helped the company achieve the fastest retail sales growth in the US among major food and beverage manufacturers. The strength was visible across the portfolio, as the company also gained market share.
He also highlighted the announced acquisition of JDE Peet’s. At the same time, the company is preparing to separate into two focused businesses, Beverage Co and Global Coffee Co. Cofer said the company continued to operate effectively despite a dynamic and challenging environment. He added that the company remained focused on strengthening its long-term foundation.
Looking ahead, Cofer identified three main priorities for 2026. He said the company planned to deliver low double-digit EPS growth for the full year. He also noted the importance of completing and integrating the JDE Peet’s acquisition. In addition, he said the company intended to establish two well-positioned, independent businesses.
Keurig Dr Pepper Inc. (NASDAQ:KDP) operates as a beverage company in North America. It manufactures, markets, distributes, and sells hot and cold beverages, along with single-serve brewing systems.
13. Accenture plc (NYSE:ACN)
Dividend Yield as of February 27: 3.12%
On February 25, Citi lowered its price recommendation on Accenture plc (NYSE:ACN) to $215 from $266. The firm maintained a Neutral rating on the shares.
On February 26, Accenture and Mistral AI announced a multi-year strategic collaboration focused on helping organizations in Europe and other regions scale advanced AI. The partnership is designed to support clients as they move toward secure, large-scale AI deployments that align with regional requirements.
The two companies plan to co-develop and deliver enterprise-grade AI solutions that address real business challenges and produce measurable results across industries. Clients will gain access to Mistral AI’s scientific innovation and its range of enterprise AI products. At the same time, they will benefit from Accenture’s experience in designing, governing, and scaling AI across large and complex organizations.
This combined effort is expected to help companies capture value faster while maintaining security. Accenture’s global network of AI specialists will support these deployments. The company also brings deep knowledge of industry processes, regulatory environments, and large-scale transformation efforts.
As part of the agreement, Accenture will also become a customer of Mistral AI. Its professionals will use Mistral AI’s models and products, including Mistral AI Studio. The company will also integrate Mistral AI’s technologies into its own operations to support client solutions.
Accenture plc (NYSE:ACN) operates as a global professional services company. It provides services and solutions across strategy and consulting, technology, operations, Industry X, and Song.
