5 Best Undervalued Dividend Stocks To Buy Now

In this article, we discuss 5 best undervalued dividend stocks to buy now. If you want to read our detailed analysis of undervalued dividend stocks and their performance in the past, go directly to read 12 Best Undervalued Dividend Stocks To Buy Now. 

5. McKesson Corporation (NYSE:MCK)

Number of Hedge Fund Holders: 60
P/E Ratio as of November 7: 18.18

McKesson Corporation (NYSE:MCK) is a Texas-based major pharmaceutical distribution and healthcare solutions company. The company currently pays a quarterly dividend of $0.62 per share and has a dividend yield of 0.54%, as of November 7. It is one of the best dividend stocks on our list as the company has been raising its dividends consistently for the past seven years.

At the end of Q2 2023, 60 hedge funds tracked by Insider Monkey owned stakes in McKesson Corporation (NYSE:MCK), which remained unchanged from the previous quarter. The total value of these stakes is over $3 billion.

4. The Home Depot, Inc. (NYSE:HD)

Number of Hedge Fund Holders: 68
P/E Ratio as of November 7: 18.39

The Home Depot, Inc. (NYSE:HD) is one of the largest home improvement retail chains in the US. The company has been raising its dividends consistently for the past 13 years, with its current quarterly dividend coming in at $2.09 per share. As of November 7, the stock has a dividend yield of 2.84%.

The Home Depot, Inc. (NYSE:HD) was a part of 68 hedge fund portfolios at the end of Q2 2023, up from 65 in the previous quarter. The total value of stakes owned by these hedge funds is over $2.23 billion. With roughly 2 million shares, Millennium Management was the company’s leading stakeholder in Q2.

3. Exxon Mobil Corporation (NYSE:XOM)

Number of Hedge Fund Holders: 71
P/E Ratio as of November 7: 10.51

An American energy company, Exxon Mobil Corporation (NYSE:XOM) is next on our list of the best dividend stocks on our list. At the end of the second quarter of 2023, 71 hedge funds in Insider Monkey’s database held stakes in Exxon Mobil Corporation (NYSE:XOM), compared with 73 in the preceding quarter. The total value of these stakes is more than $3.08 billion.

On October 27, Exxon Mobil Corporation (NYSE:XOM) declared a 4.4% hike in its quarterly dividend to $0.95 per share. Through this increase, the company stretched its dividend growth streak to 41 years. The stock’s dividend yield on November 7 came in at 3.59%.

2. Pfizer Inc. (NYSE:PFE)

Number of Hedge Fund Holders: 73
P/E Ratio as of November 7: 17.04

Pfizer Inc. (NYSE:PFE) is a major American pharmaceutical company that specializes in the development, manufacturing, and marketing of pharmaceutical products and healthcare solutions. The company offers a per-share dividend of $0.41 every quarter and has a dividend yield of 5.26%, as of November 7. The company holds a 13-year track record of dividend growth, which makes PFE one of the best dividend stocks on our list.

With a collective value of over $1.5 billion, 73 hedge funds in Insider Monkey’s database owned positions in Pfizer Inc. (NYSE:PFE) in Q2 2023. The number of hedge funds having stakes in the company remained the same in the previous quarter as well.

1. JPMorgan Chase & Co. (NYSE:JPM)

Number of Hedge Fund Holders: 106
P/E Ratio as of November 7: 8.60

JPMorgan Chase & Co. (NYSE:JPM) tops our list of the best dividend stocks to buy now. The American financial services company pays a quarterly dividend of $1.05 per share, having raised it by 5% in September this year. The stock’s dividend yield on November 7 came in at 2.92%.

According to Insider Monkey’s database of Q2 2023, 106 hedge funds owned stakes in JPMorgan Chase & Co. (NYSE:JPM), compared with 112 in the preceding quarter. The collective value of these stakes is over $4.38 billion.

You can also take a look at 12 Best Small-Cap Biotech Stocks with Massive Potential According to Hedge Funds and 12 Stocks that Could Skyrocket According to Investment Newsletters

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