10 Best Value Dividend Stocks to Invest in According to the Media

1. Macy’s, Inc. (NYSE:M)

Forward P/E Ratios: 5.15

Macy’s, Inc. (NYSE:M) is a New York-based holding company of department stores. The company oversees a portfolio of three major retail brands—Macy’s, Bloomingdale’s, and Bluemercury—which offer a wide range of products such as clothing, accessories, home goods, and other consumer items. Its retail presence spans across 43 states in the US, as well as in Washington, D.C., Guam, and Puerto Rico.

In the fourth quarter of 2024, Macy’s, Inc. (NYSE:M) reported revenue of $7.77 billion, which fell by 4.3% from the same period last year. However, the revenue beat analysts’ estimates by $12.5 million. As the first year of the Bold New Chapter strategy concluded, the company credited its customer experience investments for driving its strongest comparable sales of the year and marking its best performance in nearly three years. The First 50 locations posted sales growth for four consecutive quarters, while its luxury brands, Bloomingdale’s and Bluemercury, recorded faster annual sales growth.

Macy’s, Inc. (NYSE:M) also reported a solid cash position, which makes it a great investment for income investors. The company ended the year with $1.3 billion of cash on its balance sheet. Its operating cash flow for the year came in at $1.3 billion, and its free cash flow amounted to $679 million. In February, the company hiked its quarterly dividend by 5% to $0.1824 per share. This was the company’s fourth consecutive year of dividend growth, which makes M one of the best value dividend stocks. The stock has a dividend yield of 6.78%, as of April 21.

Overall, Macy’s, Inc. (NYSE:M) ranks first on our list of the best value stocks that pay dividends. While we acknowledge the potential of M 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 M 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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