Unloved Dividend Stocks: A Treasure Trove for Value Investors
2024’s Underperformers Offer Attractive Yields
While the broader market indices, such as the S&P 500 and Nasdaq Composite, had a phenomenal year in 2024, not all stocks shared in the success. However, this presents an opportunity for value-oriented investors to scoop up dividend stocks at discounted prices. Kraft Heinz, Kenvue, and Middlesex Water are three such companies that have seen their yields rise to attractive levels.
Kraft Heinz: A High-Yield Dividend Stock with a Diversified Brand Portfolio
Kraft Heinz is currently trading near a four-year low, following a 17% decline in 2024 and a poor start to 2025. The company’s yield has ballooned to 5.5%, making it an intriguing high-yield dividend stock. Although Kraft’s revenue has been in decline, its margins have remained strong. With a forward price-to-earnings ratio of just 9.6, Kraft is a solid choice for investors looking to buy a dirt-cheap value stock with a high yield.
Kenvue: A Johnson & Johnson Spin-Off with Upside Potential
Kenvue, a Johnson & Johnson spin-off, has had a disappointing start to life as an independent company. The stock declined slightly in 2024 and trades at a discount to its peer group. However, Kenvue’s self-care and essential health segments are growing well, and the company’s valuation and yield protect the downside. With a near 4% dividend yield and trading at 17 times forward earnings estimates, Kenvue is a classic value stock candidate.
Middlesex Water: A Dividend King with a Steep Discount
Middlesex Water, a water utility with operations in New Jersey and Delaware, saw its shares plunge almost 20% in 2024. However, this decline presents an excellent opportunity for dividend-hungry investors to pick up shares of Middlesex Water and its 2.6% forward-yielding dividend on the cheap. With a strong track record of consistent dividend raises and trading at a steep discount to its five-year average cash-flow multiple, Middlesex Water is a bargain for income investors.
Don’t Miss Out on These Undervalued Dividend Stocks
Investing in equal parts of each of these dividend stocks produces an average yield of 4%. With their yields at attractive levels and valuations at discounted prices, Kraft Heinz, Kenvue, and Middlesex Water are worth a closer look for value-oriented investors.
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