In this article, we discuss 14 value stocks to buy with high dividend yields. You can skip our detailed analysis of value stocks and the performance of dividend stocks over the years, and go directly to read 5 Value Stocks to Buy With High Dividend Yields.
Lowell Miller's book, Single Best Investment, emphasized the thoughts of Fama and French on value investing, citing their articles in the Journal of Finance. Here are some remarks by Nobel laureates:
“Firms that the market judges to have poor prospects, signaled by low stock prices and low price/book ratios, have higher expected stock returns . . . than firms with strong prospects.”
The book further mentioned that when a growth stock fails to meet investors' overly optimistic expectations, they realize that the current price overestimates the company's potential, leading to a sudden drop in price. On the other hand, a value stock, which isn't anticipated to perform strongly, surprises by doing better than expected. This prompts an upward reassessment of its price. However, it's important for investors not to risk everything on just one investment. Having a variety of stocks has consistently been a good strategy for investors in the past.
In 2023, growth stocks have been doing well, but with a good earnings season, valuations of S&P 500 companies are getting closer to historical averages. This situation is making a case for investors to think about value stocks, as mentioned by David Kelly from JPMorgan Asset Management. In addition to Kelly’s remarks, several earlier reports have presented a positive outlook of value stocks and underscored how well value investing tends to fare during periods of economic uncertainty or instability. In our article titled 12 Best Undervalued Dividend Stocks to Buy Now, we referenced a Franklin Templeton report highlighting that value stocks could thrive amid moderate inflation. These companies often can increase prices for their products, leading to higher cash flows. This surplus can be used to grow the business if that's a good option. Otherwise, the company might choose to reward shareholders by giving out dividends or purchasing its stock. Analysts predict that value stocks will likely perform better in the upcoming years due to their attractive valuations, the potential for earnings growth, and their stability during slight economic downturns.
In this article, we will discuss value dividend stocks with high yields. Verizon Communications Inc. (NYSE:VZ), Altria Group, Inc. (NYSE:MO), and Pfizer Inc. (NYSE:PFE) are some of the best dividend stocks on the list, among others mentioned.
14 Value Stocks to Buy With High Dividend Yields
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Our Methodology:
To compile this list, we filtered for dividend stocks with a P/E ratio below 20 and dividend yields exceeding 5% as of November 14. From that selection, we chose companies with a proven track record of consistently paying dividends to their shareholders. The ranking of these stocks is based on their P/E ratios, arranged from the highest to the lowest.
NNN REIT, Inc. (NYSE:NNN) is a Florida-based real estate investment trust company that focuses on acquiring, owning, and managing properties that are primarily leased to tenants in industries such as retail, healthcare, and commercial segments. On October 16, the company declared a quarterly dividend of $0.565 per share, which was in line with its previous dividend. Earlier this year, the company raised its dividend for the 34th consecutive year, which makes NNN one of the best dividend stocks on our list. As of November 16, the stock has a dividend yield of 5.77%.
At the end of Q2 2023, 21 hedge funds in Insider Monkey's database reported having stakes in NNN REIT, Inc. (NYSE:NNN), which remained unchanged from the preceding quarter. The collective value of these stakes is over $154.4 million.
Evergy, Inc. (NASDAQ:EVRG) is an American electric utility company that provides electricity generation, transmission, and distribution services. As of the close of Q2 2023, the company was a part of 27 hedge fund portfolios, up from 26 in the previous quarter. The stakes owned by these hedge funds have a total value of $372.6 million.
Evergy, Inc. (NASDAQ:EVRG), one of the best dividend stocks on our list, currently offers a quarterly dividend of $0.6125 per share. In 2022, the company stretched its dividend growth streak to 18 years. The stock has a dividend yield of 5.09%, as of November 16.
Pfizer Inc. (NYSE:PFE) is next on our list of the best dividend stocks with high dividend yields. The American multinational pharmaceutical company has been rewarding shareholders with growing dividends for the past 13 years. It currently offers a per-share dividend of $0.41 every quarter and has a dividend yield of 5.56%, as recorded on November 16.
As of the close of the second quarter of 2023, 73 hedge funds in Insider Monkey's database owned investments in Pfizer Inc. (NYSE:PFE), worth collectively over $1.5 billion. Diamond Hill Capital was the company's leading stakeholder in Q2.
Avista Corporation (NYSE:AVA) is a Washington-based energy company that provides electricity and natural gas services to residential, commercial, and industrial customers. On November 2, the company announced a quarterly dividend of $0.46 per share, which fell in line with its previous dividend. Overall, it holds an impressive track record of raising its dividends for 21 years. The stock's dividend yield on November 16 came in at 5.28%.
At the end of June 2023, 10 hedge funds owned stakes in Avista Corporation (NYSE:AVA), down from 13 in the previous quarter, according to Insider Monkey's database. These stakes are collectively valued at over $27 million.
Spire Inc. (NYSE:SR) manages an extensive network of pipelines, storage facilities, and distribution systems to transport natural gas to its customers. The company announced a 5% increase in its quarterly dividend to $0.755 per share on November 13. This marked the company's 21st consecutive year of dividend growth, which places SR on our list of the best dividend stocks. As of November 16, the stock has a dividend yield of 5.09%.
Spire Inc. (NYSE:SR) remained a popular buy among hedge funds during Q2 2023 as 21 funds owned stakes in the company at the end of the quarter, jumping from 12 in the previous quarter, according to our database. These stakes are collectively worth over $97.6 million. Among these hedge funds, Citadel Investment Group was the company's leading stakeholder in Q2.
Northwest Natural Holding Company (NYSE:NWN) is an American company that provides natural gas distribution services to residential, commercial, and industrial customers. The company offers a quarterly dividend of $0.4875 per share, having raised it by 0.6% on October 12. This was the company's 68th consecutive year of dividend growth, which makes NWN one of the best dividend stocks on our list. The stock has a dividend yield of 5.26%, as of November 16.
Insider Monkey's database of Q2 2023 showed that 13 hedge funds owned stakes in Northwest Natural Holding Company (NYSE:NWN), up from 12 in the previous quarter. These stakes have a collective value of $13.7 million.
U.S. Bancorp (NYSE:USB) is an American diversified financial services company. It provides services like checking and savings accounts, loans, mortgages, credit cards, and wealth management services for individual customers. The company's current quarterly dividend stands at $0.48 per share and has a dividend yield of 5.19%, as of November 16. It is one of the best dividend stocks on our list as the company has been increasing its dividends for the past 5.19%.
According to Insider Monkey data of Q2 2023, 42 hedge funds owned stakes in U.S. Bancorp (NYSE:USB), compared with 48 in the previous quarter. The consolidated value of these stakes is roughly $555 million.
Enterprise Products Partners L.P. (NYSE:EPD) is a leading midstream energy company that is primarily involved in the transportation, storage, and processing of natural gas, natural gas liquids (NGLs), crude oil, refined products, and petrochemicals. The company has been raising its dividends consistently for the past 24 years and currently pays a quarterly dividend of $0.50 per share. The stock has a dividend yield of 7.66%, as of November 16.
As of the close of Q3 2023, 25 hedge funds tracked by Insider Monkey reported having stakes in Enterprise Products Partners L.P. (NYSE:EPD), compared with 26 in the previous quarter. The consolidated value of these stakes is more than $272.7 million.
WesBanco, Inc. (NASDAQ:WSBC) operates as a bank holding company primarily serving individuals, businesses, and institutions with a range of financial services. On November 15, the company announced a 3% hike in its quarterly dividend to $0.36 per share. Through this increase, the company took its dividend growth streak to 12 years, which makes it one of the best dividend stocks. As of November 16, WSBC has a dividend yield of 5.17%.
At the end of Q2 2023, 9 hedge funds in Insider Monkey's database owned investments in WesBanco, Inc. (NASDAQ:WSBC), compared with 11 in the preceding quarter. The overall value of these stakes is more than $7.4 million.