5 Best Undervalued Dividend Kings to Buy in September

2. Commerce Bancshares, Inc. (NASDAQ:CBSH)

P/E Ratio: 17.51

Another undervalued dividend king to buy on this list is Commerce Bancshares, Inc. (NASDAQ:CBSH), a Missouri-based bank holding company. The company provides services in mortgages, loans, and credit cards. In July, Jefferies maintained its Hold rating on the stock with a $71 price target, highlighting the company’s strong loan growth and net interest income.

In Q2 2022, Commerce Bancshares, Inc. (NASDAQ:CBSH) reported an operating cash flow of over $161.6 million, up from $124.5 million in the previous quarter. The company generated $148.2 million in free cash flow, compared with $109 million in the preceding quarter. During the quarter, it paid roughly $32 million in dividends, which shows its strong FCF generation.

Commerce Bancshares, Inc. (NASDAQ:CBSH) currently pays a quarterly dividend of $0.265 per share, with a dividend yield of 1.57%, as of September 6. The company is a dividend king with 53 years of consecutive dividend growth.

At the end of June 2022, 17 hedge funds in Insider Monkey’s database owned stakes in Commerce Bancshares, Inc. (NASDAQ:CBSH), valued at $112.7 million. In the previous quarter, 16 hedge funds owned stakes in the banking company, with a total worth of $132.2 million.