In this article, we will take a look at some of the best value stocks that pay dividends.
Dividends, though sometimes underappreciated, have significantly contributed to long-term investor gains. Between 1960 and the end of the previous year, reinvested dividends and the effects of compounding accounted for about 85% of the S&P Index’s total return. Dividend-oriented strategies offer the advantage of steady income, improved portfolio stability, and a potential buffer during uncertain economic periods—making them a strong choice for all-weather portfolios.
With ongoing tariff tensions in the US adding to market volatility, many investors have begun favoring dividend-focused approaches to strengthen their portfolios. After a stretch where growth stocks took center stage, dividend investing has started to regain traction. According to a report by Franklin Templeton, US-listed dividend ETFs recorded average monthly net inflows of nearly $3.3 billion during the six months leading up to January 31, 2025—up sharply from just $107 million during the same period a year earlier.
Given the uncertain global environment, investors have increasingly leaned toward more reliable components to maintain portfolio balance. Dividend-paying stocks—particularly those backed by strong fundamentals—have emerged as a preferred option due to their ability to generate stable and predictable cash flows. Since these cash flows play a central role in equity valuation models, determining the intrinsic value of dividend stocks typically involves less uncertainty compared to valuing growth-oriented equities. As a result, such stocks are seen as a stabilizing force within a diversified investment strategy.
According to analysts, the strength of dividend-paying stocks lies in their capacity to cushion portfolio losses during market downturns while still providing a meaningful upside. Historically, dividend strategies have shown defensive qualities across different regions and time periods. Data for the three-year span ending December 31, 2024, revealed that dividend stocks experienced lower volatility and smaller maximum drawdowns than the broader market in global, US, and European segments. Notably, when concerns over inflation and rising interest rates resurfaced in August, dividend stocks proved more resilient than their growth-focused counterparts.
Historically, income-focused investing often leans heavily toward value stocks, as investors typically look for companies offering high dividend yields and lower valuation multiples. However, a report by S&P Dow Jones Indices points out that the Dividend Aristocrats Index strikes a balance between both value and growth characteristics. Since 1999, the index has maintained an average composition of roughly 60.5% value stocks and 39.5% growth stocks, showing no consistent bias toward either investing style. Analysts maintained that a portfolio combining strong dividend yield, consistent dividend growth, and resilience in payouts should always remain relevant. They noted that even without relying on market revaluation, the combination of income and income growth could support projected nominal gross returns exceeding 10% annually. Given this, we will take a look at some of the best value dividend stocks according to billionaires.
Our Methodology
For this article, we scanned Insider Monkey’s Q4 2024 proprietary database of billionaires’ stock holdings and identified dividend stocks from the list. From that group, we picked dividend stocks with forward P/E ratios below 20, as of April 13. The stocks are ranked according to the number of billionaires having stakes in them. Where two or more stocks were tied on billionaire sentiment, we used forward P/Es as a tiebreaker between them.
At Insider Monkey, we are obsessed with hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10. The Goldman Sachs Group, Inc. (NYSE:GS)
Number of Billionaire Holders: 15
Forward P/E Ratio as of April 13: 11.03
The Goldman Sachs Group, Inc. (NYSE:GS) is an American multinational investment bank, headquartered in New York. The company’s management appears optimistic about the growth potential in areas like private credit and private equity. To tap into these expanding markets, the firm established a Capital Solutions Group aimed at structuring deals and supporting clients interested in alternative investments. This move underscores Goldman’s ability not only to identify emerging trends across the financial sector but also to build new revenue streams from those insights.
In the final quarter of 2024, The Goldman Sachs Group, Inc. (NYSE:GS) reported a revenue of $13.87 billion, reflecting a 23% year-over-year increase. Over the full year, assets under supervision reached a record $3.14 trillion, up 12%. The company’s book value per share climbed 7.4% to $336.77. In addition, it ended the year with a stronger liquidity position, holding $182 billion in cash and equivalents, up from $155 billion in the previous quarter.
The Goldman Sachs Group, Inc. (NYSE:GS) is a solid dividend payer and has always remained committed to its shareholder returns. In FY24, the company returned $3.8 billion to shareholders in dividends. Moreover, it has been making regular payments to shareholders since 1999. The company offers a quarterly dividend of $3.00 per share and has a dividend yield of 2.43%, as of April 13. With a P/E ratio of 11.03, GS is one of the best value stocks according to billionaires.
9. The Kraft Heinz Company (NASDAQ:KHC)
Number of Billionaire Holders: 15
Forward P/E Ratio as of April 13: 10.79
The Kraft Heinz Company (NASDAQ:KHC) is an American multinational food company. It has built its main strategy around making the most of its strong brand reputation. As consumer preferences shift, the company aims to stay relevant by adjusting to market trends while preserving its brand strength and maintaining pricing power. In the past few years, the company has worked on refining its approach to market segmentation and expanding its presence in key regions. A strong emphasis has also been placed on managing costs—particularly in areas like raw materials and supply chain operations—to help protect profit margins despite increasing production expenses.
The Kraft Heinz Company (NASDAQ:KHC) delivered mixed results in the final quarter of 2024, as soft sales were balanced out by improved profitability measures. Adjusted earnings per share came in at $0.84, beating forecasts by $0.06—thanks in part to favorable tax impacts and a reduced number of shares outstanding. Revenue fell 5% year-over-year to $6.58 billion, coming in below the projected $6.66 billion, with ongoing weakness in organic sales. In the company’s key US market, net sales declined 3.9%, as price increases were unable to fully make up for lower sales volumes.
Even with these headwinds, The Kraft Heinz Company (NASDAQ:KHC) maintained a healthy financial position throughout the fiscal 2024. Free cash flow rose by 6% year-over-year to $3.2 billion, while operating cash flow improved by 5.2%, reaching $4.2 billion. The company also returned $2.7 billion to shareholders through a combination of dividends and share repurchases. It currently offers a quarterly dividend of $0.40 per share and has a dividend yield of 5.46%, as of April 13.
