6 Undervalued Stocks That Just Raised Dividends – A Golden Opportunity for Investors!
Market Volatility Creates Dividend Growth Opportunities
As 2025 kicks off with market turbulence, dividend-paying stocks continue to underperform despite their reputation as safe-haven investments. However, this downturn could be a golden opportunity for long-term investors to buy solid dividend stocks at a discount.
Investors often focus on high-yield stocks, stable dividend payers, or companies increasing dividends—a key indicator of financial strength and long-term confidence. Morningstar analysts have identified six undervalued companies that raised their dividends in January, signaling strong fundamentals and potential price appreciation.
6 Undervalued Stocks That Just Increased Dividends
These companies passed a rigorous screening process, requiring:
✅ A quarterly dividend increase of at least 2%
✅ A dividend yield of 2% or more
✅ A 4- or 5-star rating from Morningstar analysts, meaning they are currently undervalued
Here are the top six companies that made the cut:
Albertsons (ACI)
• ⭐️ Morningstar Rating: ★★★★
• Fair Value Estimate: $25.00
• Dividend Strength: A 15% payout ratio, ensuring flexibility for debt management and pensions.
Las Vegas Sands (LVS)
• ⭐️ Morningstar Rating: ★★★★
• Fair Value Estimate: $60.00
• Dividend Strength: Consistent dividends and strategic buybacks at attractive valuations.
Cigna Group (CI)
• ⭐️ Morningstar Rating: ★★★★
• Fair Value Estimate: $357.00
• Dividend Strength: Strong balance sheet post-Express Scripts merger, increasing dividends and buybacks.
Comcast (CMCSA)
• ⭐️ Morningstar Rating: ★★★★★
• Fair Value Estimate: $49.00
• Dividend Strength: 10x dividend growth since 2008, backed by robust cash flows.
Eversource Energy (ES)
• ⭐️ Morningstar Rating: ★★★★★
• Fair Value Estimate: $73.00
• Dividend Strength: Steady dividend growth despite regulatory challenges.
Polaris (PII)
• ⭐️ Morningstar Rating: ★★★★★
• Fair Value Estimate: $75.00
• Dividend Strength: Consistently raises dividends and maintains its dividend aristocrat status.
Why This Matters for Investors
Dividend increases signal a company’s confidence in its financial health and future earnings potential. Investors who buy these undervalued stocks can benefit from both higher dividend payouts and potential capital appreciation as the market stabilizes.
Now could be the perfect time to act—before the market fully prices in these dividend hikes!
Market Volatility Creates Dividend Growth Opportunities
As 2025 kicks off with market turbulence, dividend-paying stocks continue to underperform despite their reputation as safe-haven investments. However, this downturn could be a golden opportunity for long-term investors to buy solid dividend stocks at a discount.
Investors often focus on high-yield stocks, stable dividend payers, or companies increasing dividends—a key indicator of financial strength and long-term confidence. Morningstar analysts have identified six undervalued companies that raised their dividends in January, signaling strong fundamentals and potential price appreciation.
6 Undervalued Stocks That Just Increased Dividends
These companies passed a rigorous screening process, requiring:
✅ A quarterly dividend increase of at least 2%
✅ A dividend yield of 2% or more
✅ A 4- or 5-star rating from Morningstar analysts, meaning they are currently undervalued
Here are the top six companies that made the cut:
Albertsons (ACI)
• ⭐️ Morningstar Rating: ★★★★
• Fair Value Estimate: $25.00
• Dividend Strength: A 15% payout ratio, ensuring flexibility for debt management and pensions.
Las Vegas Sands (LVS)
• ⭐️ Morningstar Rating: ★★★★
• Fair Value Estimate: $60.00
• Dividend Strength: Consistent dividends and strategic buybacks at attractive valuations.
Cigna Group (CI)
• ⭐️ Morningstar Rating: ★★★★
• Fair Value Estimate: $357.00
• Dividend Strength: Strong balance sheet post-Express Scripts merger, increasing dividends and buybacks.
Comcast (CMCSA)
• ⭐️ Morningstar Rating: ★★★★★
• Fair Value Estimate: $49.00
• Dividend Strength: 10x dividend growth since 2008, backed by robust cash flows.
Eversource Energy (ES)
• ⭐️ Morningstar Rating: ★★★★★
• Fair Value Estimate: $73.00
• Dividend Strength: Steady dividend growth despite regulatory challenges.
Polaris (PII)
• ⭐️ Morningstar Rating: ★★★★★
• Fair Value Estimate: $75.00
• Dividend Strength: Consistently raises dividends and maintains its dividend aristocrat status.
Why This Matters for Investors
Dividend increases signal a company’s confidence in its financial health and future earnings potential. Investors who buy these undervalued stocks can benefit from both higher dividend payouts and potential capital appreciation as the market stabilizes.
Now could be the perfect time to act—before the market fully prices in these dividend hikes!