In this article, we will take a look at some of the best overlooked stocks to buy right now.
Over time, dividend-paying stocks have shown the ability to generate strong total returns across different market environments and levels of volatility.
A report by Thornburg Investment Management noted that, unlike bond interest payments that stay fixed for the bond’s duration, cash dividends paid to equity shareholders can grow over time. Citing data from S&P Dow Jones Indices, the report revealed that from May 1971 to February 2025, the S&P 500 delivered an average annual return of 118.6%. In comparison, the S&P 500 reinvested dividends delivered a return of 195.3% over the same period.
This highlights the power of compounding over the long term, showing how reinvesting dividends can significantly enhance returns. The effect becomes stronger as the investment period lengthens, indicating a direct relationship between time and compounding growth. For instance, the annualized gap between the price return and total return of the S&P 500 over each 10-year period averaged 77%.
According to Thornburg, dividend-paying companies are vital for both performance and stability in a portfolio. Dividends have historically been influential, contributing nearly half (49.3%) of the broader market’s total return since 1871, with the remaining portion coming from price appreciation.
Given this, we will take a look at some of the best overlooked dividend stocks to invest in.
Our Methodology
For this list, we screened dividend-paying companies with a market capitalization above $2 billion that have raised their dividends for at least ten straight years. This process helped identify some often-overlooked firms that maintain steady dividend policies and consistent shareholder returns. From this group, we selected the companies with the lowest hedge fund holdings, based on data from Insider Monkey’s Q2 2025 database, and ranked them in ascending order.
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).
15. California Water Service Group (NYSE:CWT)
Number of Hedge Fund Holders: 18
California Water Service Group (NYSE:CWT) is among the best overlooked dividend stocks to buy right now.
On October 31, Baird’s analyst David Sunderland revised the firm’s outlook on California Water Service Group (NYSE:CWT), cutting the price target to $55 from $60 while maintaining an Outperform rating, as reported by The Fly. The update came after the company’s third-quarter results, which reflected encouraging signs even as the firm acknowledged possible delays in the General Rate Case (GRC) process.
In the third quarter of 2025, California Water Service Group (NYSE:CWT) generated $311.2 million in revenue, marking a 4% year-over-year increase but falling short of analysts’ projections by more than $10 million. The company’s net income stood at $61.2 million, with diluted earnings per share of $1.03, mirroring the prior year’s results.
During the quarter, the utility invested over $135 million in its water system infrastructure, up 14.8% from the same period last year. The company also announced its 323rd consecutive quarterly dividend of $0.30 per share, extending its 58-year streak of annual dividend increases. Over the past five years, its dividend has grown at a compound annual rate of 7.7%.
Management indicated that, if the proposed 2024 California GRC and infrastructure improvement plan receives approval, combined with ongoing capital investments in other regions, the company’s regulated rate base could expand at an annualized rate of nearly 12%.
California Water Service Group (NYSE:CWT) operates as a regulated provider of water and wastewater services throughout the state of California.
14. Avista Corporation (NYSE:AVA)
Number of Hedge Fund Holders: 27
Avista Corporation (NYSE:AVA) is among the best overlooked stocks that pay dividends.
On November 7, Mizuho raised its price target for Avista Corporation (NYSE:AVA) from $39 to $42 while keeping a Neutral rating, following the utility’s stronger-than-expected performance in the third quarter, as reported by The Fly.
Avista Corporation (NYSE:AVA) reported third-quarter 2025 revenues of $403 million, marking a 2.35% increase from the same period last year, though revenue fell short of analysts’ expectations by $14.7 million. As of September 30, 2025, the company had $210 million of liquidity available under its committed line of credit and $43 million under its letter of credit facility.
Looking ahead to 2026, the company plans to issue roughly $120 million in long-term debt and up to $80 million in common stock.
In its earnings report, CFO Kevin Christie highlighted the implementation of approved settlements for both the Oregon and Idaho general rate cases. He also reported $363 million in capital expenditures during the first three quarters of the year, with total spending expected to reach $525 million for 2025. Christie added that potential capital opportunities, including a request for proposals (RFP) and the addition of a large customer, could reach up to $500 million between 2026 and 2029.
Avista Corporation (NYSE:AVA) provides electricity and natural gas services, generating, transmitting, and distributing energy to customers across the Pacific Northwest.
13. Exponent, Inc. (NASDAQ:EXPO)
Number of Hedge Fund Holders: 28
Exponent, Inc. (NASDAQ:EXPO) is one of the best overlooked stocks to buy right now.
On November 2, Truist lowered its price target for Exponent, Inc. (NASDAQ:EXPO) from $100 to $90 while maintaining a Buy rating, according to a report by The Fly. The analyst noted that artificial intelligence could create new opportunities for the company as clients seek its expertise in failure analysis. However, there is also a risk that increased efficiencies from automation could reduce billable hours, and the consulting sector may continue to face pressure from such technological changes.
In its third-quarter report, Exponent, Inc. (NASDAQ:EXPO) highlighted strong performance, with double-digit net revenue growth driven by the strength of its diversified portfolio. Growth was particularly strong in dispute-related work across the energy, transportation, life sciences, and construction sectors. As AI becomes more integrated into safety-critical systems, the company is supporting clients in managing risks and innovating responsibly.
For Q3 2025, total revenue rose 8% to $147.1 million, while revenue before reimbursements increased 10% to $137.1 million, up from $136.3 million and $125.1 million, respectively, in the same period last year.
Exponent, Inc. (NASDAQ:EXPO) is a global engineering and scientific consulting firm that delivers multidisciplinary solutions for complex technical and scientific problems.
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