5 Best Undervalued Dividend Stocks to Buy Now

4. Verizon Communications Inc. (NYSE:VZ)

Number of Hedge Fund Holders: 56
P/E Ratio (TTM) as of April 17: 7.80

Verizon Communications Inc. (NYSE:VZ) is an American multinational telecommunications company, based in New York. In Q4 2022, the company generated over $35.3 billion in revenues, up 3.5% from the same period last year. Its cash position remained stable during the year as its operating cash flow for FY22 came in at $37.1 billion and its free cash flow stood at $14.1 billion.

On March 2, Verizon Communications Inc. (NYSE:VZ) declared a quarterly dividend of $0.6525 per share, having raised it by 2% in September 2022. The company has been growing its dividends consistently for the past 16 years, which makes it one of the best dividend stocks on our list. The stock’s dividend yield came in at 6.61% on April 17.

At the end of December 2022, 56 hedge funds in Insider Monkey’s database owned stakes in Verizon Communications Inc. (NYSE:VZ). These stakes have a total value of over $1.5 billion.

Mawer Investment Management mentioned Verizon Communications Inc. (NYSE:VZ) in its Q3 2022 investor letter. Here is what the firm has to say:

“There are a few other segments of our portfolios that displayed weakness in the quarter. Cable and telecommunication companies have been an area that has lagged the broader market as their worlds are increasingly colliding. Companies such as Verizon (NYSE:VZ) has been impacted as wireless operator is spending heavily to attract internet subscribers with fixed wired access and the cable companies are trying to build wireless businesses.”