Top 12 Undervalued Dividend Stocks to Buy Now

7. Shell plc (NYSE:SHEL)

Forward P/E Ratio: 13.08

Dividend Yield as of May 17: 3.46% 

Next on our list of the Most Undervalued Dividend Stocks is Shell plc (NYSE:SHEL). It is an integrated energy company with operations spanning exploration, production, refining, marketing, and chemical manufacturing, alongside growing investments in biofuels and hydrogen.

On May 12, Morgan Stanley lowered its price target on Shell plc (NYSE:SHEL) from £3,589 to £3,495, but maintained its ‘Equal Weight’ rating on the shares. The trimmed target still represents an upside of almost 10% from the current price level.

The move comes despite Shell plc (NYSE:SHEL) exceeding profit estimates in its Q1 2026 report on May 7. The energy giant’s profit of $6.9 billion was its highest in two years, boosted by gains amid the Iran war. However, its revenue of $69.7 billion fell below expectations by over $10.6 billion. Moreover, Shell’s total oil and gas production fell 4% from the previous quarter, mainly due to the outages in Qatar.

The strong Q1 profit prompted Shell plc (NYSE:SHEL) to raise its quarterly dividend by 5% to $0.7812 per share. However, the company reduced its quarterly share buyback program from $3.5 billion to $3 billion to bolster its balance sheet, since a short-term ​liquidity squeeze after the ongoing energy supply disruptions increased its debt.