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.
12. EOG Resources, Inc. (NYSE:EOG)
Dividend Yield as of February 27: 3.28%
On February 25, Roth Capital raised its price recommendation on EOG Resources, Inc. (NYSE:EOG) to $110 from $108. It reiterated a Neutral rating on the shares. The firm said it remains on the sidelines, pointing to EOG’s shorter inventory life compared with peers. It also noted the company’s exposure to higher-cost emerging plays such as the Utica Shale and PRB, along with riskier international exploratory areas. Roth introduced its 2027 estimates and said it currently expects production to grow 3% year over year next year.
During the company’s Q4 2025 earnings call, Executive VP and CFO Ann Janssen reported adjusted earnings per share of $2.27. She also reported adjusted operating cash flow per share of $4.86. She said this performance translated into nearly $1 billion in free cash flow during the period. For the full year 2025, Janssen said the company generated adjusted net income of $5.5 billion, or $10.16 per share. She added that free cash flow for the year reached $4.7 billion.
She also pointed to the company’s capital returns during the fourth quarter. EOG distributed $1.2 billion to shareholders during the period. This included $550 million paid through its regular dividend and $675 million used for share repurchases.
EOG Resources, Inc. (NYSE:EOG) operates as a crude oil and natural gas exploration and production company. It explores, develops, produces, and markets crude oil, natural gas liquids, and natural gas. Its operations are focused primarily on major producing basins in the United States, the Republic of Trinidad and Tobago, and selected international areas.
11. APA Corporation (NASDAQ:APA)
Dividend Yield as of February 27: 3.29%
On February 26, Roth Capital analyst Leo Mariani raised the firm’s price recommendation on APA Corporation (NASDAQ:APA) to $27 from $23. The analyst maintained a Neutral rating on the shares. The firm said it updated its model following the company’s latest earnings report.
During the Q4 2025 earnings call, CEO John Christmann said 2025 had been a very successful year for APA. He pointed to steady progress on the company’s strategic priorities and strong operational performance across its asset base. He also said the company moved faster than expected on its cost reduction efforts.
Christmann explained that APA had originally targeted a $350 million reduction in controllable spending on a run-rate basis by the end of 2027. He said the company had already exceeded that goal ahead of schedule. As a result, he said APA now expects to exit 2026 with controllable spending reduced by about $450 million on a run-rate basis. He also highlighted the company’s performance in the Permian Basin. He said oil production guidance was achieved or exceeded in every quarter of 2025, even though capital spending came in below the original plan. He added that the company made meaningful progress in evaluating its inventory in the region. This work strengthened confidence in sustaining long-term oil production while improving capital efficiency.
In Egypt, Christmann said the company saw strong momentum supported by targeted development under a new gas pricing framework. He explained that this strategy helped drive production growth. Gas output is expected to average around 540 million to 550 million cubic feet per day during the year.
APA Corporation (NASDAQ:APA) operates as an independent energy company. Its subsidiaries explore for and produce oil and natural gas in the United States, Egypt, and the United Kingdom. The company also explores for oil and natural gas offshore Suriname.
10. Bath & Body Works, Inc. (NYSE:BBWI)
Dividend Yield as of February 27: 3.51%
On February 23, UBS raised its price recommendation on Bath & Body Works, Inc. (NYSE:BBWI) to $22 from $21. The firm reiterated a Neutral rating on the shares. The analyst said the firm sees a balanced upside and downside outlook heading into the Q4 earnings report.
On February 20, CNBC reported that Bath & Body Works officially launched on Amazon. Its selection of fragrances, candles, body wash, and soaps is now available on the platform, with free shipping for Prime members. Bath & Body Works CEO Daniel Heaf told CNBC:
“Launching our first authorized brand storefront on Amazon allows us to put ourselves directly in the path of the consumer. It’s about meeting them where they already shop.”
The Amazon launch reflects the company’s broader effort to expand how customers access its products. Last year, Bath & Body Works began selling in college campus stores. The company now has a presence in more than 1,000 campus locations. These marked its first physical points of sale outside its roughly 2,600 owned and franchised stores and its own website.
Heaf said the Amazon partnership “is the first of many milestones that we’ll be delivering this fiscal year against that strategy.” Before this official launch, Bath & Body Works products were already available on Amazon through third-party resellers. Now the company is working to take back control of its brand presence on the platform. Heaf said the goal is to reclaim the brand story and the associated marketplace sales.
Bath & Body Works, Inc. (NYSE:BBWI) operates as a global omnichannel retailer focused on personal care and home fragrance. It sells a range of products, including 3-wick candles, home fragrance diffusers, fine fragrance mists, liquid hand soaps, body lotions, and body creams.
9. Northwest Natural Holding Company (NYSE:NWN)
Dividend Yield as of February 27: 3.71%
Northwest Natural Holding Company (NYSE:NWN) reported its Q4 2025 results on February 27. During the earnings call, CEO Justin Palfreyman said the company delivered record adjusted earnings per share, landing at the high end of its guidance range. He also said the company put a record amount of capital to work to support its customers. That investment showed up in customer growth, which reached its strongest level in nearly 20 years.
Palfreyman also introduced the MX3 storage expansion project in the Pacific Northwest. He said the project is expected to improve reliability in the region and add more capacity over time. He noted that once approved, the project could play an important role in supporting the company’s long-term earnings growth target of 5% to 7%.
He also spoke about regulatory progress. He said the company resolved its Oregon rate case in 2025, with the new rates taking effect on October 31. In Washington, he said the company worked closely with regulators and other parties and reached a settlement in principle. This resolved the revenue requirement portion of the case and provided more clarity going forward.
Looking ahead, Palfreyman said the company introduced its 2026 adjusted earnings per share guidance in the range of $2.95 to $3.15. He also reaffirmed the long-term outlook, saying the company expects adjusted earnings per share to grow at a compound annual rate of 4% to 6% from 2025 through 2030.
Northwest Natural Holding Company (NYSE:NWN), through its subsidiaries, provides energy as well as water and wastewater services. The company serves nearly one million meters across seven states.
8. The J. M. Smucker Company (NYSE:SJM)
Dividend Yield as of February 27: 3.79%
On February 27, TD Cowen raised its price recommendation on The J. M. Smucker Company (NYSE:SJM) to $124 from $112. It reiterated a Hold rating on the shares. The firm said the increase reflects its positive view of activist Elliott Investment Management’s constructive engagement with the company. It expects Elliott’s involvement to support improvements in corporate governance, operational execution, and succession planning over time.
During the company’s fiscal Q3 2026 earnings call, CEO Mark Smucker said the company had recently started engaging with Elliott. He described the discussions as constructive and said both sides had already held several meetings. He noted that Elliott largely agreed that the company remained fundamentally strong, supported by its portfolio of established brands.
Smucker said there was alignment on several key priorities. He pointed to efforts to improve operations, restore profitability, drive organic growth, and maintain disciplined capital allocation. He also said the company remained focused on evolving its Board, including the recent appointments of Bruce Chung and David Singer. He added that stabilizing the Hostess and Sweet Baked Snacks segments remained a key focus. The company is simplifying its product lineup and concentrating on core products such as cupcakes, Twinkies, and Donettes. He also said the company updated its long-term outlook to reflect a 2% growth trajectory, while emphasizing that stabilizing the business is the immediate priority.
The J. M. Smucker Company (NYSE:SJM) produces and markets branded food and beverage products worldwide.
7. U.S. Bancorp (NYSE:USB)
Dividend Yield as of February 27: 3.81%
On February 26, Truist analyst John McDonald upgraded U.S. Bancorp (NYSE:USB) to Buy from Hold. He raised the price target on the stock to $66 from $61. The analyst said the shares offer an attractive risk and reward profile as the company moves into a stronger position. He noted that net interest margin is beginning to improve, while the company now has greater balance sheet and capital flexibility. He also said there is potential for sustainable positive operating leverage over the next few years.
During the company’s Q4 2025 earnings call, President, CEO, and Director Gunjan Kedia reported adjusted earnings per share of $1.26. This marked an increase of about 18% compared with the prior year. She also said the company generated record net revenue of $7.4 billion for the quarter and $28.7 billion for the full year. Kedia pointed to strong operating performance across the business. She said the company delivered positive operating leverage of 440 basis points on an adjusted basis. She also highlighted disciplined expense management, explaining that four major productivity initiatives helped keep expenses largely stable for nine consecutive quarters. That kind of consistency is not easy to maintain, and it reflects ongoing internal focus on efficiency.
She also announced the completion of the BTIG acquisition. She described it as a strategic step forward following a long-term partnership. Kedia said the acquisition is expected to support the company’s efforts to strengthen and expand its capital markets platform. She also highlighted strong momentum in the Global Fund Services segment. She said net revenue in the business has grown at an 11% compound annual rate since 2021 and increased another 12% in 2025. She added that payment transformation remains a key long-term priority, with improving growth trends and continued focus on expanding the company’s presence in the small business segment.
U.S. Bancorp (NYSE:USB) operates as a financial services holding company. Its businesses include Wealth, Corporate, Commercial and Institutional Banking, Consumer and Business Banking, Payment Services, and Treasury and Corporate Support.
6. Target Corporation (NYSE:TGT)
Dividend Yield as of February 27: 4.01%
On February 27, Wells Fargo analyst Edward Kelly raised the firm’s price recommendation on Target Corporation (NYSE:TGT) to $130 from $115. The analyst reiterated an Overweight rating on the shares. The firm said investor day marked an important moment for the company, with investment plans emerging as the key focus as Target works to get back on track. With the stock already up 17% year-to-date, the outlook presents a more complex setup. Wells Fargo said there is room for the new CEO to fund investments and deliver results, especially in a more supportive consumer environment.
On February 27, CNBC reported that Target said it would sell only cereals made without certified synthetic colors by the end of May. The move makes Target one of the latest retailers to tighten its product standards amid growing scrutiny of artificial dyes. The company said it worked closely with both national brands and its own private-label partners to reformulate products where needed. The decision applies to cereals sold in stores and through its online platform.
“We know consumers are increasingly prioritizing healthier lifestyles, and we’re moving quickly to evolve our offerings to meet their needs,” Cara Sylvester, Target’s chief merchandising officer, said in a statement.
Target’s decision places it ahead of several major brands that are still working toward similar changes. Some products currently on its shelves, including General Mills’ Lucky Charms, are expected to remove artificial colors on longer timelines, with Lucky Charms targeting completion by 2027.
Target Corporation (NYSE:TGT) operates as a general merchandise retailer. It sells products through its physical stores and digital channels, offering everyday essentials and differentiated merchandise at discounted prices.
5. The Bank of Nova Scotia (NYSE:BNS)
Dividend Yield as of February 27: 4.24%
On February 25, RBC Capital raised its price objective on The Bank of Nova Scotia (NYSE:BNS) to C$106 from C$97. It reiterated a Sector Perform rating on the shares. The analyst said the bank’s Q1 results came in stronger than expected, with credit performance exceeding forecasts, particularly in the Canadian Banking segment. RBC also said it continues to expect lower provisions for credit losses in the second half of 2026.
On February 24, Bank of Nova Scotia, known as Scotiabank, reported solid fiscal Q1 results. Adjusted earnings per share rose to C$2.05 for the three months ended January 31, 2026, compared with C$1.76 in the same period last year. The improvement reflected earnings growth across all of the bank’s business segments. The bank also said it remains confident in its ability to meet its medium-term targets.
Total revenue increased about 3% year over year to C$9.65 billion, up from C$9.37 billion a year earlier. The growth came from stronger performance across multiple areas of the business.CEO Scott Thomson said the bank entered 2026 with solid momentum. He highlighted earnings growth across all business lines during the quarter. He also pointed to the Canadian Banking segment, which delivered another quarter of margin expansion, stronger fee income growth, and positive operating leverage.
The Canadian Banking division reported earnings of C$960 million, up 5% from the prior year. The increase was supported by strong revenue performance and continued expense discipline. The International Banking segment also delivered higher earnings. It reported C$737 million in earnings, representing a 7% increase from the same period last year. The growth was supported by margin expansion and favorable operating leverage.
The Global Wealth Management segment posted one of the strongest gains. Adjusted earnings rose 18% to C$491 million. The increase was driven by higher mutual fund fees, stronger brokerage revenue, and improved net interest income.
The Bank of Nova Scotia (NYSE:BNS) operates as a global financial services provider. It offers personal, commercial, corporate, and investment banking services. Its business segments include Canadian Banking, International Banking, Global Wealth Management, Global Banking and Markets, and Other.
4. VICI Properties Inc. (NYSE:VICI)
Dividend Yield as of February 27: 5.84%
On February 27, Deutsche Bank lowered its price objective on VICI Properties Inc. (NYSE:VICI) to $32 from $34. The firm maintained a Hold rating on the shares.
During the company’s Q4 2025 earnings call, CEO Edward Pitoniak spoke about the importance of tenant operating performance. He pointed to The Venetian as a clear example of how property performance can improve over time. He said the property’s EBITDAR increased from $487 million before the pandemic to $777 million in 2024. He explained that while VICI operates under triple net leases and does not manage day-to-day operations, the company closely tracks performance. He also said it values the work of its operating partners in keeping its properties competitive and relevant.
President John Payne also discussed several strategic partnerships formed during 2025. He said the company entered into a long-term agreement with Cain and Eldridge Industries. VICI also completed a $510 million delayed draw term loan with Red Rock Resorts. In addition, Clairvest joined as the company’s 14th tenant, and VICI completed a $1.16 billion sale-leaseback transaction with Golden Entertainment. Payne said these transactions represented a total of $2.1 billion in committed capital during 2025. He added that the deals carried a weighted average initial yield of 8.9%, reflecting the company’s continued focus on disciplined investment.
He also said the company expanded into the Las Vegas locals market during the year. He described the segment as attractive, supported by favorable demographics and steady demand.
VICI Properties Inc. (NYSE:VICI) operates as a real estate investment trust. The company owns and acquires gaming, hospitality, wellness, entertainment, and leisure destinations, which it leases to operators under long-term triple net agreements.
3. Best Buy Co., Inc. (NYSE:BBY)
Dividend Yield as of February 27: 6.13%
On February 23, Piper Sandler lowered its price recommendation on Best Buy Co., Inc. (NYSE:BBY) to $71 from $76. The firm maintained a Neutral rating on the shares ahead of upcoming big box retailer earnings. The firm said it expects home remodel demand to “normalize” in the first half of the year. It also noted that both Target and Best Buy are facing some pressure from weaker store traffic, which continues to weigh on near-term performance.
On February 24, Wedbush also lowered its price objective on Best Buy to $70 from $80 and kept a Neutral rating ahead of the company’s earnings release. The firm said it sees downside risk to comparable sales following a soft holiday season for consumer electronics. This came despite heavy discounting, which typically helps support demand but did not fully offset weaker buying trends.
Wedbush said forward guidance remains the biggest uncertainty. The firm pointed to ongoing memory supply shortages, which are expected to continue affecting PC demand and the broader electronics category through at least this year. These supply issues often ripple across multiple product categories, making demand less predictable.
The firm now expects guidance to reflect a low single-digit decline in comparable sales at the midpoint. This outlook stands in contrast to consensus expectations, which currently point to modest growth. Wedbush also said that while expectations heading into earnings are already low, it does not see many clear catalysts that would drive meaningful upside in the near term.
Best Buy Co., Inc. (NYSE:BBY) focuses on delivering technology solutions to consumers. The company operates through two segments: Domestic and International.
2. Flowers Foods, Inc. (NYSE:FLO)
Dividend Yield as of February 27: 10.02%
On February 18, Stephens lowered its price recommendation on Flowers Foods, Inc. (NYSE:FLO) to $11 from $13. It maintained an Equal Weight rating on the shares. The firm said it updated its estimates following the company’s Q4 earnings report.
During the Q4 2025 earnings call, CEO Ryals McMullian acknowledged ongoing weakness in the traditional loaf segment. He said the company has less exposure to that category, but its performance still trailed broader market trends. This remains an area of pressure, even as the company continues to focus on other parts of its portfolio.
Management said the company’s 2026 guidance reflects several ongoing challenges. These include continued softness in the overall category, the impact of having one fewer operating week, and persistent inflation. At the same time, the company plans to increase investment in its core brands. Management also said a broader strategic review is underway, though it is still in the early stages.
CFO Diego Scaglione said the company’s 2026 outlook points to performance ranging from a decline of about 180 basis points to slightly positive growth. This suggests a relatively flat overall trend. He also said the broader category is expected to decline by about 4%, which would create additional pressure. He noted that the extra week comparison would add roughly 150 basis points of pressure to reported results.
Flowers Foods, Inc. (NYSE:FLO) produces and markets packaged bakery foods in the United States. The company operates bakeries nationwide and offers a wide range of bakery products.
1. Innovative Industrial Properties, Inc. (NYSE:IIPR)
Dividend Yield as of February 27: 14.35%
On February 26, Alliance Global analyst Aaron Grey raised the firm’s price objective on Innovative Industrial Properties, Inc. (NYSE:IIPR) to $55 from $50. The analyst reiterated a Neutral rating on the shares. The firm said the increase reflects improved visibility into the company’s ability to resume rent collection on previously defaulted assets following its Q4 report.
The company reported its Q4 2025 results on February 23, with both earnings and revenue exceeding expectations. The results showed continued progress in diversifying its portfolio, improving its financial position, and addressing tenant-related issues. The company reported FFO per share of $1.78, which came in $0.09 above estimates. Still, this was down from $2.05 in the same quarter last year.
The REIT generated revenue of $66.66 million during the quarter, exceeding consensus estimates by $0.73 million. Revenue remained below the $76.74 million reported a year earlier. The company also received $3.74 million in payments from its defaulted tenant, Gold Flora, which contributed $0.13 per share to earnings. PharmaCann made payments of $0.24 million, adding another $0.01 per share. Quarter-to-date, Gold Flora had paid $1.5 million, while PharmaCann had paid $1.45 million.
Executive Chairman Alan Gold said the company made meaningful progress throughout 2025 in executing its strategy. He pointed to efforts to diversify the portfolio, strengthen the balance sheet, and actively resolve tenant-related challenges. He also said the company’s strategic investment in IQHQ and the creation of a new $100 million revolving credit facility reflected its disciplined approach to capital allocation. He added that continued tenant resolutions and new leasing activity reinforced the value and demand for the company’s real estate assets.
Innovative Industrial Properties, Inc. (NYSE:IIPR) operates as an internally managed real estate investment trust. The company focuses on acquiring, owning, and managing specialized industrial properties leased to licensed operators for regulated cannabis facilities.
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