5 Best Undervalued Dividend Stocks to Buy Now

In this article, we will discuss 5 best undervalued dividend stocks to buy now. If you want to read our detailed analysis of value stocks and their performance in the past, go directly to read 10 Best Undervalued Dividend Stocks to Buy Now. 

5. Skyworks Solutions, Inc. (NASDAQ:SWKS)

P/E Ratio: 10.78

Skyworks Solutions, Inc. (NASDAQ:SWKS) is an American semiconductor manufacturing company that also specializes in mobile communications systems. The company is one of the best dividend stocks on our list as it has been raising its dividends consistently for the past eight years. Currently, it pays a quarterly dividend of $0.62 per share and has a dividend yield of 2.92%, as recorded on October 24.

In its fiscal Q3 2022 report, Skyworks Solutions, Inc. (NASDAQ:SWKS) posted a strong cash position. The company generated a free cash flow of $86.3 million and its operating cash flow came in at $213.8 million. It paid nearly $90 million to shareholders in dividends during the quarter, compared with $82 million paid during the same period last year.

Cowen mentioned Skyworks Solutions, Inc. (NASDAQ:SWKS) in its October investors’ note and mentioned that the company’s guidance is achievable given the current market environment. The firm maintained its Outperform rating on the stock with a $125 price target.

As of the close of Q2 2022, 40 hedge funds tracked by Insider Monkey owned stakes in Skyworks Solutions, Inc. (NASDAQ:SWKS), up from 39 in the previous quarter. These stakes have a consolidated value of over $1.04 billion.

Heartland Advisors mentioned Skyworks Solutions, Inc. (NASDAQ:SWKS) in its Q3 2022 investor letter. Here is what the firm has to say:

“Before the risk-on rebound early in the quarter, we were searching for opportunities to shift from our defensive stance, looking for beaten-down, high-quality “early cycle” leaders. Existing holding, Skyworks Solutions, Inc. (NASDAQ:SWKS), represents one such opportunity that was added to one weakness.

Skyworks is one of two leading providers of radio frequency system components to smartphone makers and electronics manufacturers. With every step-up in product complexity, over the past two decades, the competitive landscape has shrunk while gross margins have increased significantly. 5G represents another such step-up, which is likely to increase how much Skyworks can make per smartphone. (Click here to view the full text)