In this article, we will be looking at the 5 best undervalued dividend stocks to buy now. To read our detailed analysis of these stocks, you can go directly to see the 10 Best Undervalued Dividend Stocks to Buy Now.
5. Algonquin Power & Utilities Corp. (NYSE: AQN)
Number of Hedge Fund Holders: 24
Dividend Yield: 4.36%
Algonquin Power & Utilities Corp. (NYSE: AQN) owns and operates a portfolio of regulated and non-regulated utility assets in Canada, the US, Chile, and Bermuda. It works to provide electrical energy through its non-regulated renewable energy power generation facilities. The company ranks 5th on our list of the best undervalued dividend stocks to buy now.
Credit Suisse’s analyst Andrew Kuske holds a $12.95 price target on shares of Algonquin Power & Utilities Corp. (NYSE: AQN) as of this May, alongside a Neutral rating.
In the second quarter of 2021, Algonquin Power & Utilities Corp. (NYSE: AQN) had an EPS of $0.15, beating estimates by $0.02. The company’s revenue was $527.5 million, up 53.52% year over year and beating estimates by $64.29 million. Algonquin Power & Utilities Corp. (NYSE: AQN) has gained 11.95% in the past year.
By the end of the second quarter of 2021, 24 hedge funds out of the 873 tracked by Insider Monkey held stakes in Algonquin Power & Utilities Corp. (NYSE: AQN) worth roughly $310 million. This is compared to 10 hedge funds in the previous quarter with a total stake value of approximately $172 million.
4. Prudential Financial, Inc. (NYSE: PRU)
Number of Hedge Fund Holders: 28
Dividend Yield: 4.41%
Prudential Financial, Inc. (NYSE: PRU) is a provider of insurance, investment management, and other financial products and services in the US and across the globe. The company operates through its PGIM, Retirement, Group Insurance, Individual Annuities, Individual Life, Assurance IQ, International Businesses, and Closed Block segments. It ranks 4th on our list of the best undervalued dividend stocks to buy now.
As of this August, RBC Capital’s Mark Dwelle holds a raised price target on shares of Prudential Financial, Inc. (NYSE: PRU) of $112, compared to the previous target of $108. The analyst also reiterated his Sector Perform rating on the stock while raising his price target.
In the second quarter of 2021, Prudential Financial, Inc. (NYSE: PRU) had an EPS of $3.79, beating estimates by $0.69. The company’s revenue was $13.10 billion, up 0.18% year over year and missing estimates by $609.14 million. Prudential Financial, Inc. (NYSE: PRU) has gained 22.22% in the past 6 months and 36.57% year to date.
By the end of the second quarter of 2021, 28 hedge funds out of the 873 tracked by Insider Monkey held stakes in Prudential Financial, Inc. (NYSE: PRU) worth roughly $494 million. This is compared to 37 hedge funds in the previous quarter with a total stake value of approximately $634 million.
3. TELUS Corporation (NYSE: TU)
Number of Hedge Fund Holders: 13
Dividend Yield: 4.49%
TELUS Corporation (NYSE: TU) is a communication services company offering a range of telecommunications and information technology products and services in Canada. The company operates through its Wireless and Wireline segments and ranks 3rd on our list of the best undervalued dividend stocks to buy now.
This August, Desjardins analyst Jerome Dubreuil raised the price target on shares of TELUS Corporation (NYSE: TU) to $23.54. The analyst also reiterated a Buy rating on the stock.
In the second quarter of 2021, TELUS Corporation (NYSE: TU) had an EPS of $0.21, beating estimates by $0.01. The company’s revenue was $3.29 billion, up 18.35% year over year and beating estimates by $29.01 million. TELUS Corporation (NYSE: TU) has gained 10.45% in the past 6 months and 13.61% year to date.
By the end of the second quarter of 2021, 13 hedge funds out of the 873 tracked by Insider Monkey held stakes in TELUS Corporation (NYSE: TU) worth roughly $215 million. This is compared to 18 hedge funds in the previous quarter with a total stake value of approximately $200 million.
2. Universal Corporation (NYSE: UVV)
Number of Hedge Fund Holders: 9
Dividend Yield: 6.41%
Universal Corporation (NYSE: UVV) is a consumer staples company operating through its Tobacco Operations and Ingredients Operations segments. The company processes leaf tobacco and plant-based ingredients to supply consumers across the world. It ranks 2nd on our list of the best undervalued dividend stocks to buy now.
In the fiscal first quarter of 2022, Universal Corporation (NYSE: UVV) had an EPS of $0.30. The company’s revenue was $350 million, up 10.8% year over year. Universal Corporation (NYSE: UVV) has gained 7.02% in the past year.
By the end of the second quarter of 2021, 9 hedge funds out of the 873 tracked by Insider Monkey held stakes in Universal Corporation (NYSE: UVV) worth roughly $87 million. This is compared to 1o hedge funds in the previous quarter with a total stake value of approximately $93 million.
1. Enbridge Inc. (NYSE: ENB)
Number of Hedge Fund Holders: 19
Dividend Yield: 7.02%
Enbridge Inc. (NYSE: ENB), an energy infrastructure company, is next and last on our list of the best undervalued dividend stocks to buy now. The company operates through its Liquids Pipelines, Gas Transmission and Midstream, Gas Distribution and Storage, Renewable Power Generation, and Energy Services segments. It ranks 1st on our list.
As of this August, BMO Capital’s Ben Pham raised his price target on shares of Enbridge Inc. (NYSE: ENB) to $43.15. The analyst also reiterated an Outperform rating on the shares.
In the second quarter of 2021, Enbridge Inc. (NYSE: ENB) had an EPS of $0.54, beating estimates by $0.08. The company’s revenue was $8.77 billion, up 47.12% year over year and beating estimates by $1.61 billion. Enbridge Inc. (NYSE: ENB) has gained 6.23% in the past 6 months and 18.36% year to date.
By the end of the second quarter of 2021, 19 hedge funds out of the 873 tracked by Insider Monkey held stakes in Enbridge Inc. (NYSE: ENB) worth roughly $166 million. This is compared to 22 hedge funds in the previous quarter with a total stake value of approximately $144 million.
ClearBridge Investments, an investment management firm, mentioned Enbridge Inc. (NYSE: ENB) in its first-quarter 2021 investor letter. Here’s what they said:
“Enbridge owns and operates one of the largest oil and gas pipeline networks in North America. The company also owns regulated gas distribution utilities in Ontario, Canada. The first quarter saw the market giving the energy sector credit for its leverage to the eventual economic recovery as COVID-19 vaccines get rolled out through 2021.”
You can also take a look at 10 Best Undervalued Stocks to Buy Now According to Reddit and 10 Best Undervalued Dividend Stocks to Buy Now.
