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.
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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.
8. McKesson Corporation (NYSE:MCK)
Number of Billionaire Holders: 16
Forward P/E Ratio as of April 13: 18.80
McKesson Corporation (NYSE:MCK) is a Texas-based healthcare company that specializes in pharmaceutical distribution and offers health information technology, medical supplies, and health management solutions. In recent years, the company has streamlined its focus on its core markets in the US and Canada, stepping away from certain European regions to better allocate its resources. The company’s strength lies in its extensive distribution network and strong relationships with both customers and suppliers, allowing it to operate efficiently and offer broad services within pharmaceutical distribution.
In its fiscal Q3 2025, McKesson Corporation (NYSE:MCK) posted a revenue of $95.3 billion, marking an 18% year-over-year increase. Adjusted operating profit rose by 16% to $1.5 billion. Despite the strong performance, revenue came in slightly below analysts’ expectations of $96.08 billion, with softer results in the US pharmaceutical segment contributing to the shortfall. The stock has a forward P/E of 18.80, which makes it one of the best value stocks to invest in.
In response to its solid results, McKesson Corporation (NYSE:MCK) raised its full-year adjusted earnings forecast to between $32.55 and $32.95 per share, reflecting an expected annual growth of 19% to 20%. The company also emphasized its ongoing commitment to shareholder returns, having distributed $3.1 billion in the first nine months of 2024, including $254 million in dividends. It currently pays a quarterly dividend of $0.71 per share and has a dividend yield of 0.41%, as of April 13. The company has raised its payouts for eight consecutive years.
7. ConocoPhillips (NYSE:COP)
Number of Billionaire Holders: 16
Forward P/E Ratio as of April 13: 10.36
ConocoPhillips (NYSE:COP) ranks seventh on our list of the best value stocks according to billionaires. The Texas-based energy company is engaged in hydrocarbon exploration and production. The company’s purchase of Marathon Oil expanded its US onshore presence by adding strategically aligned acreage in the Permian Basin, Eagle Ford, and Bakken formations. This acquisition brought in over 2 billion barrels of resources, with an average supply cost of under $30 per barrel. In addition, the deal included Marathon’s positions in Oklahoma’s Anadarko Basin and assets in Equatorial Guinea.
Now, ConocoPhillips (NYSE:COP) is looking to offload its newly acquired Oklahoma assets, reportedly seeking a sale price exceeding $1 billion. The portfolio up for sale includes around 300,000 net acres, producing roughly 39,000 barrels of oil equivalent per day—about half of which is natural gas. Due to the higher gas content, these assets generate slimmer margins compared to the company’s oil-heavy operations. This divestiture would support ConocoPhillips’ broader objective of shedding $2 billion worth of non-core assets following the Marathon acquisition.
ConocoPhillips (NYSE:COP) has a strong cash position, which makes it a reliable option for income investors. Over the past year, the company produced $20.1 billion in operating cash flow, with total cash from operations amounting to $20.3 billion. Staying focused on rewarding shareholders, it distributed $3.6 billion in dividends. Following a 34% increase announced in October, the quarterly dividend has risen to $0.78 per share. This was the company’s 10th consecutive year of dividend growth. As of April 13, the stock has a dividend yield of 3.61%.
6. 3M Company (NYSE:MMM)
Number of Billionaire Holders: 17
Forward P/E Ratio as of April 13: 17.42
3M Company (NYSE:MMM) is a Minnesota-based multinational conglomerate that operates in a wide range of industries. The stock is outperforming the broader market this year, surging by nearly 5% since the start of 2025. In the past 12 months, MMM has delivered a nearly 49% return to shareholders. The rise signals growing investor confidence in CEO Bill Brown’s strategy to steer the company back on track. Several challenges are already showing signs of progress, and where that’s not yet the case, Brown has set plans in motion. For instance, the healthcare division was spun off into a new company called Solventum last year. In addition, 3M has reached settlements related to PFAS and combat earplugs, providing both management and shareholders with greater clarity regarding future financial obligations.
In the fourth quarter of 2024, 3M Company (NYSE:MMM) reported revenue topping $6 billion, beating Wall Street forecasts by $157 million. The firm has recently focused on reinforcing its core business segments, with innovation continuing to play a central role. Investments in exclusive technologies and patents have helped sharpen its competitive advantage. Meanwhile, steps to boost efficiency—particularly within the supply chain—have led to a 70% improvement in suppliers meeting delivery timelines. The company’s ability to manage regulatory issues and ongoing legal matters has also contributed to its financial resilience and investor trust. With a forward P/E ratio of 17.42, MMM is one of the best value stocks to monitor.
3M Company (NYSE:MMM) also maintained a healthy cash flow throughout FY24, generating $1.8 billion from operations and $4.9 billion in free cash. During the year, it returned $3.8 billion to shareholders through a mix of dividends and stock buybacks. Notably, on February 4, the company raised its quarterly dividend by 4.3% to $0.73 per share—the first increase since halving the payout in May of the previous year. The stock has a dividend yield of 2.15%, as of April 13.
5. Citigroup Inc. (NYSE:C)
Number of Billionaire Holders: 17
Forward P/E Ratio as of April 13: 8.22
Citigroup Inc. (NYSE:C) ranks fifth on our list of the best value stocks according to billionaires. The American multinational investment bank and financial services company has operations in five key segments: Services, Markets, Banking, U.S. Personal Banking, and Wealth. The Trump administration’s sweeping tariff policy has shaken markets and could disrupt supply chains and the broader economy. While Citigroup faces near-term risks across lending and investment banking, its global services like cash management and trading may benefit from shifting trade dynamics. The stock is down by nearly 12% since the start of 2025, however, it has returned over 5% in the past 12 months.
In FY24, Citigroup Inc. (NYSE:C) saw its net income climb nearly 40% to $12.7 billion, beating revenue expectations. This growth was fueled by strong results in its Services, Wealth, and US Personal Banking divisions, alongside improved cost management and a major restructuring effort. Overall, revenue rose 3% year over year to $81.1 billion.
Citigroup Inc. (NYSE:C) also continued delivering solid returns to shareholders, distributing $6.7 billion through dividends and buybacks. With a 34-year streak of uninterrupted dividend payments, C remains one of the best value dividend stocks to invest in. The company currently offers a quarterly dividend of $0.56 per share and has a dividend yield of 3.63%, as recorded on April 13.
4. Bristol-Myers Squibb Company (NYSE:BMY)
Number of Billionaire Holders: 17
Forward P/E Ratio as of April 13: 7.50
Bristol-Myers Squibb Company (NYSE:BMY) is an American multinational pharmaceutical company, headquartered in New York. It mainly specializes in discovering and delivering innovative medicines. The company is building its growth strategy around a pipeline of cutting-edge therapies, with particular emphasis on its neuroscience drug, Cobenfy. Positive outcomes from ongoing trials could significantly impact the company’s long-term financial outlook.
With a steady dividend policy and targeted expansion efforts, Bristol-Myers Squibb Company (NYSE:BMY) remains attractive to income-seeking investors. In 2024, the approvals of Cobenfy and Breyanzi are expected to be major revenue drivers. During the fourth quarter, its Growth Portfolio brought in $6.4 billion—up 21% year over year—while total quarterly revenue rose 7.5% to $12.34 billion, supported by strong product demand. BMY offers a good entry point to investors in the current market with a forward P/E of 7.50. It is among the best value stocks to monitor according to billionaires.
On March 3, Bristol-Myers Squibb Company (NYSE:BMY) declared a quarterly dividend of $0.62 per share, which was in line with its previous dividend. Overall, the company has been growing its payouts for 16 consecutive years. In addition, it has never missed a dividend in 93 years, which makes it a reliable stock for income investors. The stock also offers an attractive yield of 4.89%, as of April 13.
3. Bank of America Corporation (NYSE:BAC)
Number of Billionaire Holders: 18
Forward P/E Ratio as of April 13: 9.78
Bank of America Corporation (NYSE:BAC) is a North Carolina-based multinational investment bank and financial services company. The bank is widely recognized for its strong consumer banking operations and has benefited from the high-interest-rate environment as more customers flock to higher-yield deposit accounts. While elevated rates often raise the risk of loan defaults, they also allow banks to earn more from lending, a dynamic that has worked in the bank’s favor. In 2024, Bank of America added 1.1 million new consumer checking accounts, issued 4 million credit cards, and saw consumer investment assets rise 22% to $518 billion.
Bank of America Corporation (NYSE:BAC) has delivered consistently strong financial results, with an average net profit margin of 27.9% over the past five years. In the fourth quarter of 2024, net income more than doubled year over year to $6.7 billion. It also continued expanding its retail footprint, opening 213,000 new consumer checking accounts—its 24th straight quarter of growth in that segment.
Bank of America Corporation (NYSE:BAC), one of the best value dividend stocks, returned around $2 billion to shareholders through dividends last quarter and has raised its dividend for 11 consecutive years. In addition, the company maintained a 27-year track record of regular payouts. It offers a quarterly dividend of $0.26 per share and has a dividend yield of 2.89%, as of April 13.
2. The Charles Schwab Corporation (NYSE:SCHW)
Number of Billionaire Holders: 19
Forward P/E Ratio as of April 13: 18.55
The Charles Schwab Corporation (NYSE:SCHW) is an American financial services company, based in Texas. The company is a pioneer in discount brokerage, has grown into the largest stock brokerage firm, offering a wide range of financial services, including stock trading, retirement accounts, and banking products. In addition to its investment services, Schwab provides a popular checking account with unlimited ATM fee rebates worldwide and no foreign transaction fees. As of January 2025, the company manages $10.33 trillion in assets, up from $10.1 trillion in 2024.
In the fourth quarter of 2024, The Charles Schwab Corporation (NYSE:SCHW) reported $5.3 billion in revenue, a 20% increase from the previous year, driven by higher client activity and a 5% rise in active brokerage accounts to 36.5 million. The integration of TD Ameritrade added $1.6 trillion in client assets, strengthening Schwab’s market position. Net interest revenue reached $2.53 billion, while asset management and administration fees brought in $1.5 billion.
The Charles Schwab Corporation (NYSE:SCHW) maintained a strong cash position, ending the quarter with over $42 billion in cash and cash equivalents, up from $35 billion in the prior quarter. On January 29, the company raised its quarterly dividend by 8% to $0.27 per share. The stock offers a dividend yield of 1.40%, as of April 13. It has been making regular dividends to shareholders since 1990.
1. QUALCOMM Incorporated (NASDAQ:QCOM)
Number of Billionaire Holders: 19
Forward P/E Ratio as of April 13: 11.98
QUALCOMM Incorporated (NASDAQ:QCOM) is a semiconductor manufacturing company, headquartered in California. The company is a leader in wireless telecommunications technology and is well-positioned to benefit from the growth of AI and edge computing. Its partnerships with major companies like Samsung and Google have helped expand its reach in the mobile and PC sectors.
In the first quarter of fiscal year 2025, QUALCOMM Incorporated (NASDAQ:QCOM) posted strong results with $11.7 billion in revenue, a 17.6% increase from the same period last year. This marked its third consecutive quarter of double-digit revenue growth and set a new quarterly record. The company’s chip segment (QCT) was the main driver, generating $10.1 billion in revenue, a 20% year-over-year increase. Key areas of growth included a 13% rise in smartphone chip sales to $7.6 billion, a 61% surge in automotive revenue to $961 million, and a 36% boost in the Internet of Things (IoT) segment to $1.5 billion.
QUALCOMM Incorporated (NASDAQ:QCOM) ended the quarter with a solid financial position, holding over $3.1 billion in cash and cash equivalents. The company generated nearly $4.6 billion in operating cash flow and returned $942 million to shareholders through dividends. With 21 years of consecutive dividend increases, QUALCOMM remains one of the best value dividend stocks to invest in. The company offers a quarterly dividend of $0.89 per share and has a dividend yield of 2.44%, as of April 13.
Overall, QUALCOMM Incorporated (NASDAQ:QCOM) ranks first on our list of the best value stocks according to billionaires. While we acknowledge the potential of QCOM as an investment, our conviction lies in the belief that some deeply undervalued dividend stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued dividend stock that is more promising than QCOM but that trades at 10 times its earnings and grows its earnings at double digit rates annually, check out our report about the dirt cheap dividend stock.
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