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.
12. Carlisle Companies Incorporated (NYSE:CSL)
Number of Hedge Fund Holders: 29
Carlisle Companies Incorporated (NYSE:CSL) is among the best overlooked stocks that pay dividends.
On October 30, Truist analyst Keith Hughes lowered his price target for Carlisle Companies Incorporated (NYSE:CSL) from $350 to $340 while keeping a Hold rating, according to a report by The Fly. The analyst noted that cautionary remarks in the company’s recent conference presentation had prompted lower estimates. While the company’s third-quarter results exceeded expectations, its guidance for the fourth quarter fell well below, leading to a notable downward revision of second-half estimates.
In Q3 2025, Carlisle Companies Incorporated (NYSE:CSL) reported revenue of $1.35 billion, a 1% increase from the same period last year, surpassing analysts’ estimates by $29.17 million. Management adjusted full-year 2025 guidance to flat revenue and a 250-basis-point decline in adjusted EBITDA margin, reflecting third-quarter performance and a softer outlook for nonresidential construction based on the latest Carlisle market survey.
CEO D. Koch emphasized the company’s commitment to its Vision 2030 targets, aiming for $40 in adjusted EPS and a return on invested capital of at least 25%. The company expects these goals to generate more than $6 billion in cumulative free cash flow through 2030.
Carlisle Companies Incorporated (NYSE:CSL) manufactures and supplies building envelope products and solutions designed to support energy-efficient buildings.
11. Black Hills Corporation (NYSE:BKH)
Number of Hedge Fund Holders: 29
Black Hills Corporation (NYSE:BKH) is among the best overlooked stocks that pay dividends.
On November 7, Scotiabank raised its rating on Black Hills Corporation (NYSE:BKH) from Sector Perform to Outperform and increased its price target to $81 from $66, as reported by The Fly. The firm noted that the company’s upside from “high-probability” data centers in Wyoming “seems too tempting to resist.” The analyst pointed out that the 1.8+GW Crusoe/Tallgrass project alone could provide an earnings boost of about 35%.
Although the pending merger of equals remains a short-term concern, the analyst believes that the downside risk is limited even if the deal does not go through. Scotiabank expressed confidence in the current “risk/reward” profile of the stock.
In its Q3 2025 earnings report, Black Hills Corporation (NYSE:BKH) outlined a five-year strategy that includes 500 MW of data center demand by 2029, supported by Microsoft’s continued expansion and Meta’s new AI data center, which is expected to shift from construction to full operation later this year. The company is also in discussions with several high-quality partners, growing its data center load pipeline from over 1 GW to more than 3 GW. This expansion is expected to drive meaningful earnings growth through its “innovative data center tariff” and targeted investments in new transmission and generation projects.
Black Hills Corporation (NYSE:BKH) is a customer-focused, growth-driven utility company committed to enhancing lives through energy, with a goal of becoming the energy partner of choice.
10. Flowers Foods, Inc. (NYSE:FLO)
Number of Hedge Fund Holders: 32
Flowers Foods, Inc. (NYSE:FLO) is one of the best overlooked dividend stocks to buy right now.
On November 10, Deutsche Bank cut its price target for Flowers Foods, Inc. (NYSE:FLO) from $15 to $13 while maintaining a Hold rating on the stock, as reported by The Fly.
The company posted mixed results for the third quarter of 2025. Management noted that gross margin declined by 190 basis points, while EBITDA margin fell 160 basis points, despite some relief from lower ingredient costs as a percentage of sales.
Flowers Foods, Inc. (NYSE:FLO)’s quarterly revenue came in at $1.23 billion, a 3% year-over-year increase but slightly below analysts’ expectations by more than $3 million. The top-line growth was mainly supported by the Simple Mills acquisition, which helped offset declines in pricing, mix, and volume. Net income dropped 39.2% to $39.5 million, or 3.2% of sales, reflecting a 230-basis-point decrease, largely attributed to a tough consumer environment and higher interest expenses.
For fiscal year 2025, Flowers Foods, Inc. (NYSE:FLO) projects net sales between $5.254 billion and $5.306 billion, representing growth of 2.9% to 4% from the previous year. The company expects adjusted EBITDA to range from $515 million to $532 million, compared to earlier guidance of $512 million to $538 million.
Based in Thomasville, Georgia, Flowers Foods, Inc. (NYSE:FLO) produces and markets packaged bakery products across the United States.
9. Evergy, Inc. (NASDAQ:EVRG)
Number of Hedge Fund Holders: 34
Evergy, Inc. (NASDAQ:EVRG) is one of the best overlooked stocks to buy right now.
On November 10, Citi increased its price target for Evergy, Inc. (NASDAQ:EVRG) from $79 to $89 while maintaining a Buy rating on the stock, according to a report by The Fly. The firm noted that the company’s third-quarter earnings call offered greater clarity around its growing data center load.
In its Q3 2025 earnings presentation, Evergy, Inc. (NASDAQ:EVRG) reported continued progress with two major data center customers and announced the execution of multiple service agreements totaling about $200 million in financial commitments from those clients. The company expects these projects to generate roughly 600 MW of peak demand by 2029, boosting its overall load growth forecast to a 4–5% compound annual rate through that period. Evergy also added a third data center project, reflecting meaningful progress and early-stage agreements.
Evergy, Inc. (NASDAQ:EVRG) narrowed its 2025 adjusted EPS guidance to a range of $3.92 to $4.02, citing cooler-than-normal summer weather as a key factor. Management emphasized that its long-term fundamentals remain robust, supported by what it described as a “generational economic development opportunity” and the necessary investments to enable that growth.
On November 6, the company also announced a 4% increase in its quarterly dividend, marking the 20th consecutive year of dividend growth.
Evergy, Inc. (NASDAQ:EVRG), through its subsidiaries Evergy Kansas Central, Evergy Metro, and Evergy Missouri West, delivers clean, reliable, and safe energy to approximately 1.7 million customers across Kansas and Missouri.
8. Ingredion Incorporated (NYSE:INGR)
Number of Hedge Fund Holders: 34
Ingredion Incorporated (NYSE:INGR) is among the best overlooked stocks that pay dividends.
On November 5, UBS analyst Joshua Spector cut the firm’s price target on Ingredion Incorporated (NYSE:INGR) from $130 to $119 while maintaining a Neutral rating, as reported by The Fly. The analyst noted that the company’s third-quarter results fell short of expectations due to operational challenges and softer consumer demand.
For the third quarter of 2025, Ingredion Incorporated (NYSE:INGR) reported revenue of $1.82 billion, a 3% decline from the same period last year and $74.6 million below analysts’ forecasts. Reported operating income decreased 7% year over year, while adjusted operating income dropped 10%. The Food & Industrial Ingredients segment saw operating income fall 18%, largely due to production issues at the Chicago plant following a fire in late June, along with reduced demand for food and beverages amid higher retail prices.
Despite these setbacks, the company’s diversified business model provided some balance. The Texture & Healthful Solutions segment delivered solid sales and operating income growth, helping offset weakness in other areas affected by lower demand and the temporary operational disruptions.
Ingredion Incorporated (NYSE:INGR) is a global supplier of ingredient solutions serving food and beverage manufacturers worldwide.
7. First American Financial Corporation (NYSE:FAF)
Number of Hedge Fund Holders: 35
First American Financial Corporation (NYSE:FAF) is one of the best overlooked stocks to buy right now.
On October 23, Truist Securities raised its price target for First American Financial Corporation (NYSE:FAF) to $76 from $73 while maintaining a Buy rating following the company’s third-quarter results, according to a report by The Fly. The firm also increased its earnings estimates for fiscal years 2025 and 2026, noting that the stock should trade at roughly 12.5 times its projected 2026 earnings, which led to the revised price target.
First American Financial Corporation (NYSE:FAF) delivered a strong performance in the third quarter of 2025, posting revenue of $2 billion, a sharp 41% increase from the previous year and $115.7 million above market expectations. The company reported net income of $190 million, or $1.84 per diluted share, compared with a net loss of $104 million, or $1.00 per share, in the same period of 2024. Operating cash flow also improved to $273 million from $237 million last year.
On November 4, First American Financial Corporation (NYSE:FAF) declared a quarterly dividend of $0.55 per share, maintaining its prior payout. The company has increased its dividend for 15 consecutive years.
First American Financial Corporation (NYSE:FAF) is a leading provider of title insurance, settlement services, and risk solutions for real estate transactions and continues to play a central role in the digital transformation of its industry.
6. Avery Dennison Corporation (NYSE:AVY)
Number of Hedge Fund Holders: 36
Avery Dennison Corporation (NYSE:AVY) is among the best overlooked stocks that pay dividends.
On October 28, Argus analyst Alexandra Yates upgraded Avery Dennison Corporation (NYSE:AVY) from Hold to Buy, setting a price target of $200, according to a report from The Fly.
In the third quarter of 2025, Avery Dennison Corporation (NYSE:AVY) reported revenue of $2.22 billion, reflecting a nearly 2% increase from the same period last year. The company maintained a strong balance sheet and returned $670 million to shareholders during the first three quarters of 2025 through dividends and share repurchases. Through Q3, it bought back 2.5 million shares for a total of $454 million. After accounting for dilution from long-term incentive awards, the company’s share count decreased by 3.1 million compared with the same period in 2024.
In other developments, Walmart and Avery Dennison Corporation (NYSE:AVY) announced a new innovation to expand the use of radio-frequency identification (RFID) technology in fresh food categories that were previously challenging to track. The solution aims to reduce food waste and ensure freshness, benefiting consumers, producers, and retailers. This first-to-market approach is expected to transform inventory management and improve both employee and customer experiences in fresh departments, including bakery, meat, and deli.
Avery Dennison Corporation (NYSE:AVY) is a global leader in materials science and digital identification solutions.
5. Assurant, Inc. (NYSE:AIZ)
Number of Hedge Fund Holders: 37
Assurant, Inc. (NYSE:AIZ) is among the best overlooked stocks that pay dividends.
On November 10, UBS analyst Brian Meredith raised the price target for Assurant, Inc. (NYSE:AIZ) from $255 to $257 while maintaining a Buy rating on the stock, according to a report by The Fly.
Assurant, Inc. (NYSE:AIZ) delivered strong results in the third quarter of 2025, reporting revenue of $3.23 billion, a 9% increase from the same period the previous year. Keith Demmings, President, CEO, and Director, highlighted continued growth in the Global Auto segment, driven by an expanded partnership with Holman Automotive, and noted a multi-year renewal with the largest PMC in the US within the Renters segment.
Following the solid earnings performance, Assurant, Inc. (NYSE:AIZ) revised its 2025 outlook, projecting low double-digit growth in adjusted earnings per share and nearly 10% growth in adjusted EBITDA, excluding reportable catastrophes. The company’s strong cash flow generation supports a full-year plan to repurchase $300 million of shares, at the top of its expected range. Management emphasized that their ongoing focus on serving clients, investing in employees, and enhancing capabilities has been key to the company’s success and long-term shareholder value creation.
Assurant, Inc. (NYSE:AIZ) is a leading global protection company that collaborates with top brands to safeguard and service connected devices, homes, and automobiles.
4. Lincoln Electric Holdings, Inc. (NASDAQ:LECO)
Number of Hedge Fund Holders: 41
Lincoln Electric Holdings, Inc. (NASDAQ:LECO) is one of the best overlooked stocks to buy right now.
On October 31, Roth Capital raised its price target for Lincoln Electric Holdings, Inc. (NASDAQ:LECO) from $279 to $285 while maintaining a Buy rating, as reported by The Fly. The analyst was “impressed” with the company’s performance amid a turbulent global manufacturing environment and noted that more industries, including automotive, are shifting from a neutral to a positive outlook.
President, CEO, and Chairman Steven Hedlund expressed optimism about the company’s automation segment, highlighting broad growth in automation order rates in late September and October. He projected that fourth-quarter automation sales would rise approximately 15% to 20% sequentially, though still remain below last year’s levels.
In Q3 2025, Lincoln Electric Holdings, Inc. (NASDAQ:LECO) reported revenue of $1.06 billion, up 7.9% from the same period last year. The company maintained a strong cash position, generating $237 million in operating cash flow with a 149% cash conversion rate. During the quarter, the company returned $94 million to shareholders through dividends and share repurchases.
Lincoln Electric Holdings, Inc. (NASDAQ:LECO) designs, develops, and manufactures arc welding products, robotic welding systems, plasma and oxy-fuel cutting equipment, as well as related products and services.
3. Hubbell Incorporated (NYSE:HUBB)
Number of Hedge Fund Holders: 42
Hubbell Incorporated (NYSE:HUBB) is among the best overlooked stocks to buy now.
On October 29, Seaport Research raised its price target on Hubbell Incorporated (NYSE:HUBB) from $500 to $515 and maintained a Buy rating, as reported by The Fly. The analyst noted that the company is “uniquely positioned” to benefit from investments in the grid, electrification, and data centers.
In its third-quarter 2025 earnings report, CEO Gerben Bakker highlighted the completion of the DMC Power acquisition, describing it as a strong complement to Hubbell’s utility connector products and as providing a distinctive technical solution in high-growth substation markets. He added that the acquisition is expected to contribute roughly $0.20 per share in adjusted earnings in 2026.
Hubbell Incorporated (NYSE:HUBB) reported revenue of $1.5 billion for Q3, up 4.15% from the same period last year, though falling short of analysts’ estimates by nearly $31 million. Organic growth in the Electrical Solutions segment reached 8%, driven by robust demand in data center and light industrial markets. The company also raised its 2025 adjusted EPS outlook, projecting 3–4% organic growth, strong expansion in adjusted operating margins, and a lower full-year tax rate than previously expected.
Hubbell Incorporated (NYSE:HUBB) is a leading manufacturer of utility and electrical solutions, helping customers operate critical infrastructure safely, reliably, and efficiently.
2. Eastman Chemical Company (NYSE:EMN)
Number of Hedge Fund Holders: 43
Eastman Chemical Company (NYSE:EMN) is one of the best overlooked stocks to buy right now.
On November 5, BofA raised its price target for Eastman Chemical Company (NYSE:EMN) to $75 from $74 while maintaining a Buy rating, according to a report by The Fly. The analyst noted that 2026 could bring meaningful earnings tailwinds from cost savings and higher asset utilization, which may boost profits compared with 2025, even if demand in key markets remains soft and the company continues prioritizing cash generation over short-term earnings.
In its third-quarter 2025 earnings report, management emphasized ongoing cost-reduction efforts, aiming for $100 million in savings in 2026 on top of $75 million achieved this year. Chairman and CEO Mark Costa highlighted that the utilization boost for next year could range from $50 million to $75 million, depending on volumes.
Eastman Chemical Company (NYSE:EMN) reported mixed Q3 results, with revenue of $2.2 billion, down 10.6% year over year and $73.4 million below analysts’ estimates. Despite the revenue decline, the company maintained a solid cash position, generating $402 million in operating cash flow, consistent with the same quarter last year. During the quarter, Eastman returned $146 million to shareholders through dividends and share repurchases.
Eastman Chemical Company (NYSE:EMN) is a global specialty materials firm producing a wide range of advanced materials, chemicals, and fibers used in everyday products.
1. Aflac Incorporated (NYSE:AFL)
Number of Hedge Fund Holders: 46
Aflac Incorporated (NYSE:AFL) is among the best overlooked stocks that pay dividends.
On November 7, Evercore ISI analyst Thomas Gallagher raised the firm’s price target on Aflac Incorporated (NYSE:AFL) to $111 from $110 while maintaining an Underperform rating following the company’s third-quarter results, according to a report by The Fly.
Aflac Incorporated (NYSE:AFL) reported total revenue of $4.7 billion in Q3 2025, up from $2.9 billion in the same quarter last year. The increase was largely driven by net investment gains of $275 million this quarter, compared with net investment losses of $1.4 billion in Q3 2024. Net earnings came in at $1.6 billion, or $3.08 per diluted share, versus a net loss of $93 million, or $0.17 per share, a year earlier.
In the earnings release, Senior EVP and CFO Max Broden outlined guidance for 2025, projecting that the benefit ratio in Japan will range from 58% to 60% while the expense ratio is expected at the lower end of the 20%–23% range. He also noted that Aflac Japan’s pre-tax profit margin is anticipated to fall between 35% and 38%.
Aflac Incorporated (NYSE:AFL) provides supplemental insurance products, including accident, cancer, critical illness, and life coverage, paying cash benefits directly to policyholders to help cover medical and other expenses that primary health insurance may not fully address.
While we acknowledge the potential of AFL 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 AFL and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: 15 Best Dividend Growth Stocks to Buy Now and 15 Best DRIP Stocks to Own Right Now.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
