In this article, we will take a look at some of the best growing dividend stocks with low P/E ratios.
Value stocks are enjoying a rare period of strength amid this year’s broader market downturn. With earnings season approaching, it remains to be seen whether their recent edge over high-growth stocks will hold.
The S&P Value Index—which includes sectors like banking, consumer staples, and healthcare, featuring companies that trade at relatively low valuations—has fallen around 9% this year. That’s a smaller drop compared to the more than 15% decline seen in the growth-focused counterpart.
Concerns over steep valuations in the tech sector, coupled with a wave of risk aversion triggered by tariffs, have pushed investors to shift from growth to value. While similar shifts haven’t lasted long in the past, some investors believe that this time could be different, as expectations for value-oriented firms are modest enough that they may exceed them when earnings reports begin next month. Dan Morgan, senior portfolio manager at Synovus Trust, made the following comment about value investing:
“The bar has been set pretty low for value stocks compared to the uncertainty surrounding growth names and their ability to deliver on earnings estimates. If value can at least match or slightly beat expectations, the runway is clear for them.”
According to data from Bloomberg Intelligence, analysts are forecasting a 12% decline in first-quarter earnings for value companies compared to the same period last year, while growth companies are expected to post a 20% increase.
Supporters of value stocks believe that these lower expectations are already factored into their relatively modest valuations. On the other hand, optimism surrounding growth stocks—particularly in the tech sector—has soared in recent years, largely driven by enthusiasm over advancements in artificial intelligence.
Historically, value stocks have lagged behind. Over the past 20 years, the S&P 500 Value Index has only outperformed its growth counterpart five times on an annual basis. During that period, the value index climbed 202%, while the growth index surged by 600%. Michael O’Rourke, chief market strategist at JonesTrading Institutional Services, made the following statement:
“Growth is about 40% more expensive; this outperformance of value was very long overdue. Due to the incredible strength of the Magnificent Seven, too many investors crowded into growth thinking it won’t correct.”
Investors often turn to dividend stocks when looking at companies with lower valuations. Dan Lefkovitz, a strategist at Morningstar Indexes, pointed out that dividend-growth stocks—those known for consistently raising their payouts—have underperformed the broader market in 2024. He attributed this to a market that has largely been driven by a handful of fast-growing tech names. However, he also remarked that while dividend-paying stocks may trail during such growth-led rallies, they tend to hold up better during market downturns, as seen in 2022 and 2018.
Companies that consistently raise their dividends are often both profitable and financially stable—traits that become especially important during times of economic downturn. Given this, we will take a look at some of the best growing dividend stocks with low P/E ratios.
Our Methodology:
For this list, we focused on dividend-paying companies that have consistently paid dividends over the years and have also demonstrated a track record of increasing their payouts. From that group, we considered stocks with forward P/E ratios below 25, as of April 22. The stocks are ranked in ascending order of their P/E ratios.
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30. Philip Morris International Inc. (NYSE:PM)
Forward P/E Ratio as of April 22: 22.88
Philip Morris International Inc. (NYSE:PM) is an American multinational tobacco company. The company has made strides in expanding its product offerings, particularly with the development of Iqos—its heat-not-burn tobacco devices—which have captured notable market share in key regions such as Japan. The company has also secured the U.S. sales rights for Iqos from Altria, marking a significant move in its global strategy.
Another area of growth has been Zyn, the oral nicotine pouch brand acquired through its purchase of Swedish Match. Due to rising demand, Philip Morris is scaling up Zyn production to meet consumer needs. The stock is grabbing investor attention this year as it is up by over 35% since the start of 2025.
In the fourth quarter of 2024, Philip Morris International Inc. (NYSE:PM) posted strong results, with revenue increasing 7.3% year-over-year to $9.7 billion and operating income climbing 14.8% to $3.3 billion. The company’s shift toward smoke-free products continues to gain traction, with combined shipments of heated tobacco and oral nicotine products exceeding 40 billion units in a single quarter for the first time.
On March 6, Philip Morris International Inc. (NYSE:PM) announced a quarterly dividend of $1.35 per share, maintaining the previous payout. The company has now increased its dividend for 15 consecutive years, which makes it one of the best growing dividend stocks. The stock also offers an attractive dividend yield of 3.29%, as of April 22.
29. International Business Machines Corporation (NYSE:IBM)
Forward P/E Ratio as of April 22: 21.88
International Business Machines Corporation (NYSE:IBM) is an American multinational tech company commonly known as Big Blue. The stock has surged by nearly 10% since the start of 2025 because of its exceptional Q4 2024 earnings and recent developments related to cloud computing. The company has recently partnered with Amazon and its cloud arm, Amazon Web Services (AWS), to open a cloud computing research center in Romania. This initiative enhances both companies’ presence in the growing European market while tapping into the region’s skilled engineering workforce.
For International Business Machines Corporation (NYSE:IBM), any deepening of its relationship with Amazon is a positive development, as the tech giant depends on IBM’s consulting expertise to handle AWS contracts across the globe.
International Business Machines Corporation (NYSE:IBM)’s quantum computing division has also made meaningful strides in recent years. Since 2017, the company’s IBM Quantum services have generated nearly $1 billion in cumulative revenue. This growth reflects the early success of its approach, which blends superconducting qubit hardware, hybrid-cloud functionality, and the open-source Qiskit platform. Looking ahead, IBM plans to build on this momentum with a roadmap aimed at enhancing error correction and overall system reliability.
On the financial side, International Business Machines Corporation (NYSE:IBM) delivered solid results in 2024, posting $13.4 billion in operating cash flow and $12.7 billion in free cash flow. In the fourth quarter alone, the company returned $1.5 billion to shareholders through dividend payments. Currently, it pays a quarterly dividend of $1.37 per share and has a dividend yield of 2.77%, as recorded on April 22. It is one of the best growing dividend stocks on our list as the company has raised its payouts for 29 consecutive years.
28. Atmos Energy Corporation (NYSE:ATO)
Forward P/E Ratio as of April 22: 21.74
Atmos Energy Corporation (NYSE:ATO) ranks 28th on our list of the best growing dividend stocks with low P/E ratios. The Texas-based natural gas distribution company focuses on providing safe and reliable natural gas services and invests heavily in infrastructure upgrades and safety programs. In the first quarter of 2025, the company reported revenue of $1.1 billion, up 1.5% from the same period last year. Its net income came in at $352 million, up from $311 million in the prior-year period.
Atmos Energy Corporation (NYSE:ATO)’s cash position also came in strong. The company ended the quarter with $584.5 million available in cash and cash equivalents, up from $307.3 million in the prior-year period. Its operating cash flow of $282 million also grew from $245.3 million in the same quarter last year. Due to this cash position, the company has raised its payouts for 41 consecutive years. Its quarterly dividend comes in at $0.87 per share and has a dividend yield of 2.17%, as of April 22.
The number of hedge funds tracked by Insider Monkey owning stakes in Atmos Energy Corporation (NYSE:ATO) grew to 31 in Q4 2024, up from 20 in the previous quarter. The consolidated value of these stakes is nearly $322 million. Among these hedge funds, Citadel Investment Group was the company’s leading stakeholder in Q4.
27. Johnson Controls International plc (NYSE:JCI)
Forward P/E Ratio as of April 22: 20.7
Johnson Controls International plc (NYSE:JCI) is an Ireland-based multinational conglomerate that specializes in building technologies and solutions and also offers energy storage solutions. The company is well-positioned for future revenue growth, thanks to its HVAC systems and building automation solutions that help clients boost energy efficiency and lower emissions, key steps toward achieving net-zero targets. The company’s OpenBlue technology platform also plays a central role by using artificial intelligence, advanced analytics, and IoT to optimize building operations in real time. On top of that, demand for its HVAC offerings is surging in the data center sector, driven by the expanding use of AI technologies.
In the first quarter of fiscal 2025, Johnson Controls International plc (NYSE:JCI) reported $5.4 billion in sales, marking a 4% increase year-over-year on a reported basis and a 10% gain organically. GAAP income from continuing operations reached $363 million, while adjusted income totaled $426 million. Excluding the impact of acquisitions and foreign exchange, the company saw an 18% increase in orders compared to the previous year, and its order backlog grew 12%, reaching $9.3 billion.
Johnson Controls International plc (NYSE:JCI) also maintained a healthy cash position, generating $249 million in operating cash flow and $133 million in free cash flow. On an adjusted basis, free cash flow stood at $603 million. During the quarter, it returned $245 million to shareholders through dividend payments. It offers a quarterly dividend of $0.37 per share and has a dividend yield of 1.93%, as of April 22. The company has remained committed to its shareholder value and has never missed a dividend in 137 years.
26. NNN REIT, Inc. (NYSE:NNN)
Forward P/E Ratio as of April 22: 20.66
An American real estate investment trust company, NNN REIT, Inc. (NYSE:NNN) follows a low-risk investment approach that results in steady and reliable growth. The company primarily expands its portfolio by acquiring properties through sale-leaseback agreements with its current tenants. Since the start of 2025, the stock has surged by over 3%. It is among the best growing dividend stocks with low P/E ratios.
In the fourth quarter of 2024, NNN REIT, Inc. (NYSE:NNN) posted revenue of $218.5 million, marking a 1.04% increase compared to the same period the previous year and surpassing analysts’ expectations by $960,000. Net earnings for the quarter rose slightly to $97.9 million, up from $96.7 million a year earlier. As of December 31, 2024, occupancy remained strong at 98.5%, with an average remaining lease term of 9.9 years.
NNN REIT also maintained a solid cash position during the quarter, ending with more than $8.7 million in cash and cash equivalents, significantly higher than the $1.2 million reported in the same period last year. On April 15, the company declared a quarterly dividend of $0.58 per share, which was in line with its previous dividend. Overall, it has been growing its payouts for 35 consecutive years. The stock supports a dividend yield of 5.59%, as of April 22.
25. Consolidated Edison, Inc. (NYSE:ED)
Forward P/E Ratio as of April 22: 19.80
Consolidated Edison, Inc. (NYSE:ED) is an American investor-owned energy company that offers services related to regulated gas, steam, and electricity distribution. The company delivers electricity and natural gas to New York City and nearby areas through its network of local utility companies. Its earnings remain consistently stable, thanks to rate structures that are regulated by government agencies. In addition, demand for energy in the region has continued to rise at a steady pace, even during periods of economic downturn. The stock is generating strong returns this year, surging by over 27%.
In the fourth quarter of 2024, Consolidated Edison, Inc. (NYSE:ED) reported revenue of $3.67 billion, reflecting a 6.5% increase compared to the same period a year earlier. The figure also came in $35.6 million above analysts’ expectations. Net income available to common shareholders totaled $310 million, or $0.90 per share, slightly down from $335 million, or $0.97 per share, in the prior-year quarter.
During its earnings call, Consolidated Edison, Inc. (NYSE:ED) indicated that it anticipates continued growth in electricity demand throughout the year, driven by an uptick in new construction in downstate regions and regulations requiring clean heat solutions in both residential and commercial developments.
Consolidated Edison, Inc. (NYSE:ED) currently offers a quarterly dividend of $0.85 per share and has a dividend yield of 3%, as recorded on April 22. In addition to its solid dividend yield, the company also holds a long track record of dividend growth, spanning 51 years. It has also paid regular dividends to shareholders since 1885.
24. Duke Energy Corporation (NYSE:DUK)
Forward P/E Ratio as of April 22: 19.08
Duke Energy Corporation (NYSE:DUK) is a North Carolina-based electric power and natural gas holding company that is primarily involved in the generation, transmission, distribution, and sale of electricity. Since the start of 2025, the stock has surged by over 13%, outperforming the broader market.
In the fourth quarter of 2024, Duke Energy Corporation (NYSE:DUK) posted an adjusted earnings per share of $1.66, edging past market expectations by a cent. However, its revenue came in at $7.36 billion, missing forecasts by roughly $294 million. The company faced significant financial setbacks due to Hurricanes Debby, Milton, and Helene, with restoration costs estimated between $2.4 billion and $2.6 billion. Despite these challenges, Duke’s electric and gas divisions saw a 5% year-over-year increase in income, reaching approximately $1.4 billion for the quarter.
Duke Energy Corporation (NYSE:DUK) is a solid dividend payer, as the company has distributed dividends regularly for 99 consecutive years. Moreover, it has raised its payouts for 13 consecutive years, which makes DUK one of the best growing dividend stocks. The company offers a quarterly dividend of $1.045 per share and has a dividend yield of 3.4%, as of April 22.
23. The Clorox Company (NYSE:CLX)
Forward P/E Ratio as of April 22: 18.76
The Clorox Company (NYSE:CLX) is an American company that specializes in the manufacturing and marketing of consumer and professional products. The company’s strong market position is closely tied to its close partnerships with major retailers. Walmart alone makes up about 25% of the company’s sales, and the top five customers collectively generate nearly half of its total revenue. Although this level of customer concentration could be viewed as a potential risk, it actually gives Clorox significant bargaining power. These relationships help the company gain premium shelf space, run cross-brand promotions, and collaborate on marketing efforts—advantages that are difficult for rivals to replicate.
In fiscal Q2 2025, The Clorox Company (NYSE:CLX) reported revenue of $1.7 billion, which fell by 15.2% from the same period last year. However, the revenue beat analysts’ estimates by $60 million. Gross margin rose by 30 basis points, reaching 43.8% compared to 43.5% in the same quarter last year. This improvement was mainly due to cost-saving initiatives and the positive impact of selling off the VMS and Argentina operations. However, these gains were somewhat offset by lower cost absorption and increased expenses related to manufacturing, logistics, and raw materials.
The Clorox Company (NYSE:CLX)’s cash position remained strong. Year-to-date, the company generated $401 million in operating cash flow, which showed 132% growth from the prior-year period. The company currently offers a quarterly dividend of $1.22 per share and has a dividend yield of 3.44%, as of April 22. It has been growing its dividends for 22 consecutive years.
22. McKesson Corporation (NYSE:MCK)
Forward P/E Ratio as of April 22: 18.59
McKesson Corporation (NYSE:MCK) is an American healthcare company, headquartered in Texas. The company focuses on pharmaceutical distribution, medical supplies, health information technology, and healthcare management solutions.
In fiscal Q3 2025, McKesson Corporation (NYSE:MCK) posted revenue of $95.3 billion in the recent quarter, marking an 18% year-over-year increase. Adjusted operating income also saw a solid 16% rise, reaching $1.5 billion. However, revenue came in just below analysts’ expectations of $96.08 billion, partly due to softer results in the U.S. pharmaceutical segment. With a forward P/E ratio of 18.80, the company is viewed as one of the more appealing value opportunities in the market.
Following this strong performance, McKesson Corporation (NYSE:MCK) raised its full-year adjusted EPS forecast to a range of $32.55 to $32.95, representing an expected annual increase of 19% to 20%. The company also reiterated its commitment to shareholder returns, distributing $3.1 billion over the first nine months of 2024, which included $254 million in dividend payments.
McKesson Corporation (NYSE:MCK), one of the best growing dividend stocks, currently offers a quarterly dividend of $0.71 per share and has a dividend yield of 0.41%, as of April 22. The company has raised its payouts for eight consecutive years.
21. Evergy, Inc. (NASDAQ:EVRG)
Forward P/E Ratio as of April 22: 16.67
Evergy, Inc. (NASDAQ:EVRG) ranks 21st on our list of the best growing dividend stocks with low P/E ratios. The Missouri-based electric services company provides electricity generation, transmission, and distribution services to residential, commercial, industrial, and wholesale customers.
With renewed concerns over trade wars and the return of tariff discussions, companies like Evergy, Inc. (NASDAQ:EVRG) stand out as appealing investment options. Electricity isn’t subject to tariffs—it’s a local, essential service that operates independently of global supply chains. This kind of business model tends to remain stable when broader economic conditions become uncertain.
In the fourth quarter of 2024, Evergy, Inc. (NASDAQ:EVRG) reported revenue of $1.26 billion, which showed a 5.85% growth from the same period last year. The revenue also beat analysts’ estimates by $14.6 million. The company is a strong dividend payer, having raised its payouts for 19 consecutive years. It currently offers a quarterly dividend of $0.6675 per share and has a dividend yield of 3.91%, as of April 22.
At the end of Q4 2024, 38 hedge funds tracked by Insider Monkey held stakes in Evergy, Inc. (NASDAQ:EVRG), growing from 30 in the previous quarter. The overall value of these stakes is more than $1.3 billion. With over 4 million shares, Millennium Management was the company’s leading stakeholder in Q4.
20. The Gorman-Rupp Company (NYSE:GRC)
Forward P/E Ratio as of April 22: 16.37
The Gorman-Rupp Company (NYSE:GRC) is an American company that specializes in designing, manufacturing, and selling a wide range of pumps and related products for various industries and applications. The company was a part of 20 hedge fund portfolios at the end of Q4 2024, as per Insider Monkey’s database, up from 19 in the previous quarter. The total value of stakes owned by these hedge funds is nearly $47 million.
The Gorman-Rupp Company (NYSE:GRC) delivered solid results in the fourth quarter of 2024, posting revenue of $162.7 million, a 1.3% increase from the same quarter in the previous year. Although revenue came in slightly below analyst expectations by around $137,500, net income rose to $11.0 million, or $0.42 per share, compared to $9.0 million, or $0.34 per share, a year earlier. The company also reported a significant 15.8% jump in incoming orders from the prior-year period.
By the end of 2024, The Gorman-Rupp Company (NYSE:GRC) had $24.2 million in cash and cash equivalents, while its operating cash flow for the year reached $69.8 million. The company offers a quarterly dividend of $0.185 per share for a dividend yield of 2.24%, as of April 22. With a 52-year streak of consistent dividend growth, GRC is one of the best growing dividend stocks on our list.
19. Emerson Electric Co. (NYSE:EMR)
Forward P/E Ratio as of April 22: 16.21
Emerson Electric Co. (NYSE:EMR) ranks 19th on our list of the best growing dividend stocks. The American multinational manufacturing company offers products and services related to commercial, industrial, and consumer markets. Over the past five years, the company has actively reshaped its business strategy through a series of acquisitions and divestitures to align with evolving market trends.
In the third quarter of fiscal 2024, Emerson Electric Co. (NYSE:EMR) reported a notable increase in operating cash flow, reaching $1.06 billion compared to $842 million in the same quarter the year before. Free cash flow also saw an uptick, rising to $975 million from $769 million year-over-year. For fiscal 2024, Emerson anticipates distributing around $1.2 billion to shareholders via dividends. Given its current cash reserves, the company also appears well-positioned for continued dividend growth moving forward.
Emerson Electric Co. (NYSE:EMR)’s quarterly dividend comes in at $0.5275 per share and has a dividend yield of 2.11%, as of April 22. The company holds one of the longest dividend growth streaks in the market, spanning 67 years.
18. The Kroger Co. (NYSE:KR)
Forward P/E Ratio as of April 22: 15.31
The Kroger Co. (NYSE:KR) is an American retail company that operates supermarkets and multi department stores throughout the country. The company runs over 2,700 grocery stores under banners such as King Soopers, Ralphs, and Smith’s, and has established itself as a reliable name in the consumer staples sector, known for steady profits and robust free cash flow. In the fourth quarter of fiscal 2025, the company posted $34.3 billion in revenue, a 7% decline from the previous year and slightly below analysts’ estimates of $34.7 billion. Operating profit also dropped more than 27% year-over-year.
Despite the decline, The Kroger Co. (NYSE:KR) maintained a strong financial footing, solidifying its status as a consistent dividend payer. For fiscal 2024, the company generated $5.8 billion in operating cash flow and returned $883 million to shareholders through dividends. Its healthy cash reserves have helped the company sustain a low payout ratio of roughly 33% over the last five years.
The Kroger Co. (NYSE:KR), one of the best growing dividend stocks, has raised its payouts for 18 consecutive years. The company offers a quarterly dividend of $0.32 per share and has a dividend yield of 1.75%, as of April 22.
The Kroger Co. (NYSE:KR) remained popular among hedge funds in Q4 2024, with 60 funds owning stakes in the company, up from 39 in the previous quarter, according to Insider Monkey’s database. The consolidated value of these stakes is over $5.5 billion. With 50 million shares, Warren Buffett’s Berkshire Hathaway was the company’s leading stakeholder in Q4.
17. Cardinal Health, Inc. (NYSE:CAH)
Forward P/E Ratio as of April 22: 14.58
Cardinal Health, Inc. (NYSE:CAH) is an Ohio-based multinational healthcare services company that specializes in the distribution of pharma products and related devices. Recently, Jefferies upgraded the stock to Buy from Hold and has maintained a $150 price target. The firm has shown optimism about the company’s future earnings and management performance.
Cardinal Health, Inc. (NYSE:CAH) reported mixed earnings in fiscal Q2 2025. The company posted revenue of $55.2 billion, down 4% from the same period last year. However, the revenue beat analysts’ estimates by $247 million. In addition, its EPS of $1.93 also surpassed analysts’ consensus by $0.17. The company announced that it had finalized the acquisition of a majority stake in GI Alliance. This move, combined with the recently completed transaction involving Integrated Oncology Network to support the Navista oncology platform, was seen as a key step in advancing its growth in specialty care. According to the company, the acquisitions are expected to enhance its ability to deliver greater value to both healthcare providers and patients.
At the end of the quarter, Cardinal Health, Inc. (NYSE:CAH) had $3.8 billion available in cash and cash equivalents. It offers a quarterly dividend of $0.5056 per share for a dividend yield of 1.51%, as of April 22. The company has been rewarding shareholders with growing dividends for the past 38 years, which makes it one of the best dividend stocks.
16. AbbVie Inc. (NYSE:ABBV)
Forward P/E Ratio as of April 22: 13.99
AbbVie Inc. (NYSE:ABBV) ranks 16th on our list of the best growing dividend stocks with low P/E ratios. The American multinational pharmaceutical company currently carries $67 billion in debt, largely due to a series of acquisitions made in recent years. While the company is expected to continue increasing its dividend, the focus in the near term will likely shift toward reducing that debt. Though this level of debt isn’t seen as alarming, given the firm’s solid A- credit rating from S&P Global, it’s still a factor investors may want to keep in mind
In the fourth quarter of fiscal 2025, AbbVie Inc. (NYSE:ABBV) posted revenue of $15.1 billion, reflecting a 5.6% increase compared to the same period a year earlier and surpassing analysts’ forecasts of $14.87 billion. Although the company reported a minor GAAP net loss of $0.02 per share, its adjusted diluted earnings came in at $2.16 per share, slightly ahead of the projected $2.13. Over the full year 2024, combined sales of Skyrizi and Rinvoq climbed 51%, reaching $1.77 billion, supported by rising demand across global markets and broader adoption.
AbbVie Inc. (NYSE:ABBV) pays a quarterly dividend of $1.64 per share and has a dividend yield of 3.77%, as recorded on April 22. The company’s dividend growth streak spans 52 years, grabbing attention from income investors.
15. Cisco Systems, Inc. (NASDAQ:CSCO)
Forward P/E Ratio as of April 22: 13.76
Cisco Systems, Inc. (NASDAQ:CSCO) is a California-based multinational digital communications technology company that deals in networking hardware, software, and telecommunications equipment. The company has firmly established itself as a leader in enterprise networking, maintaining dominance in both traditional and modern network infrastructure. The company continues to lead in areas such as wireless access, switching, and routing, while also making significant strides in cybersecurity and collaboration technologies. With more businesses adopting hybrid cloud environments and flexible work models, Cisco is well-positioned to benefit, thanks to its comprehensive lineup of integrated networking and security solutions that set it apart from competitors.
In fiscal Q2 2025, Cisco Systems, Inc. (NASDAQ:CSCO) posted results that came in ahead of expectations. Adjusted earnings reached $0.94 per share on revenue of $13.99 billion, surpassing analyst projections of $0.91 in EPS and $13.87 billion in revenue. Revenue grew by 9.4% year-over-year, supported in part by AI infrastructure orders totaling $350 million. Management also noted a 29% rise in total product orders compared to the prior year, or 11% growth when excluding the impact of its acquisition of Splunk.
On the cash front, Cisco Systems, Inc. (NASDAQ:CSCO) delivered a strong performance as well. Operating cash flow surged 177% year-over-year to $2.2 billion, up from $800 million in the same quarter of the previous year. By quarter-end, the company held nearly $17 billion in cash and cash equivalents. The company maintains an 18-year streak of consistent dividend growth. Its quarterly dividend comes in at $0.41 per share and has a dividend yield of 2.98%, as of April 22.
14. Exxon Mobil Corporation (NYSE:XOM)
Forward P/E Ratio as of April 22: 13.72
An American multinational oil and gas company, Exxon Mobil Corporation (NYSE:XOM) is among the world’s leading corporations in the integrated production and distribution of fuels, lubricants, and chemical products. The company has been leveraging machine learning to reduce equipment breakdowns, improve operational efficiency, and automate key functions. In an industry where disruptions can lead to major expenses and many sites operate remotely, AI has become a valuable tool, enhancing workflows and enabling partially automated drilling. The company is ultimately moving toward autonomous drilling systems that can detect favorable conditions and execute operations with limited human input.
Supported by robust cash generation, Exxon Mobil Corporation (NYSE:XOM) continues to be a reliable dividend payer. In 2024, it reported $55 billion in operating cash flow, marking its third-strongest performance in the past ten years. In the fourth quarter alone, the company brought in $12.2 billion in operating cash flow and $8 billion in free cash flow. Over the full year, it returned $36 billion to shareholders, including $16.7 billion in dividends.
Exxon Mobil Corporation (NYSE:XOM), one of the best growing dividend stocks, offers a quarterly dividend of $0.99 per share. The company has been making regular dividend payments to shareholders for the past 143 years and has raised its payouts for 42 consecutive years. As of April 22, the stock has a dividend yield of 3.66%.
13. Chubb Limited (NYSE:CB)
Forward P/E Ratio as of April 22: 13.04
Chubb Limited (NYSE:CB) is a multinational insurance company that specializes in property and casualty, life insurance, and reinsurance. The company recently reported its Q1 2025 earnings and posted net premiums written of over $12.6 billion, which grew by 3.5% from the same period last year. The premiums also beat analysts’ estimates by $780 million. The company’s net income and core operating income came in at $1.33 billion and $1.49 billion, respectively.
Chubb Limited (NYSE:CB) also reported that property and casualty net premiums written totaled $10.93 billion, reflecting a 3.2% increase year-over-year, or 5.0% growth when adjusted for currency fluctuations. In North America, premiums rose by 3.4%, though this figure was influenced by two non-recurring factors: reinstatement premiums tied to California wildfire claims in the personal insurance segment, and a tough comparison due to unusually large structured deals recorded in the commercial insurance segment the previous year.
Chubb Limited (NYSE:CB)’s cash position also remained strong. The company reported an operating cash flow of $1.57 billion, and its adjusted operating cash flow came in at $2 billion. During the quarter, it also remained committed to shareholders’ obligations, returning $751 million to investors, which included $366 million in dividends. The company offers a quarterly dividend of $0.91 per share and has a dividend yield of 1.25%, as of April 22. It has raised its payouts for 31 years straight.
12. AT&T Inc. (NYSE:T)
Forward P/E Ratio as of April 22: 12.97
AT&T Inc. (NYSE:T) is an American telecommunications company that offers a wide range of related products and services to its consumers. The stock is outperforming the broader market this year, surging by over 18% since the start of 2025.
In the fourth quarter of 2024, AT&T Inc. (NYSE:T) delivered stable performance, with revenue edging up 0.6% year-over-year to $32.3 billion. Operating income came in at $5.3 billion, while net income totaled $4.4 billion. The company added 482,000 new postpaid phone subscribers and maintained an industry-leading postpaid churn rate of just 0.85%. Revenue from mobility services grew 3.3% to $16.6 billion compared to the same period last year. Meanwhile, AT&T Fiber continued its strong run, bringing in 307,000 new customers, marking the 20th consecutive quarter of over 200,000 net additions.
AT&T Inc. (NYSE:T)’s cash position also came in strong, as it reported an operating cash flow of $11.9 billion, and its free cash flow amounted to $4.8 billion. The company pays a quarterly dividend of $0.2775 per share and has a dividend yield of 4.12%, as of April 22.
11. Morgan Stanley (NYSE:MS)
Forward P/E Ratio as of April 22: 12.86
Morgan Stanley (NYSE:MS) ranks eleventh on our list of the best growing dividend stocks with low P/E ratios. The American multinational financial services company offers a wide range of related services and products to its consumers. On March 14, the company revealed that it had secured $4.1 billion for its newest fund, North Haven Infrastructure Partners IV. The fund attracted support from major institutional investors, including pension and sovereign wealth funds. With close to 20 years of experience, MSIP concentrates on essential infrastructure investments—spanning transportation, digital connectivity, energy transition, and utilities—to deliver lasting value and steady, inflation-resistant returns.
In the first quarter of 2025, Morgan Stanley (NYSE:MS) reported revenue of $17.7 billion, which showed a 17.5% growth from the same period last year. The revenue also beat analysts’ estimates by $1.19 billion. The firm reported a return on tangible common equity (ROTCE) of 23.0% for the first quarter. Its expense efficiency ratio stood at 68% during the same period. Quarterly expenses included $144 million in severance charges tied to a workforce reduction carried out in March across its various business units.
Morgan Stanley (NYSE:MS) also remained committed to returning value to shareholders, distributing $158 million through dividends in the most recent quarter. The company’s quarterly dividend comes in at $0.925 per share for a dividend yield of 3.35%, as of April 22.
10. Canadian Natural Resources Limited (NYSE:CNQ)
Forward P/E Ratio as of April 22: 12.74
Canadian Natural Resources Limited (NYSE:CNQ) is an oil and gas company, headquartered in Canada. The energy company benefits from a strong asset base, featuring a well-balanced production mix and long-lasting, low-decline resources that underpin its reliable dividend payouts. These assets enable the company to maintain steady cash flow and operational adaptability, even amid volatile commodity markets. Additionally, increased output from its zero-decline, high-value synthetic crude operations supports stable cash generation and helps keep reserve replacement costs down.
Canadian Natural Resources Limited (NYSE:CNQ) continued to demonstrate financial strength, producing more than $3.4 billion in operating cash flow in the most recent quarter, up from $3 billion a year earlier. By the end of fiscal 2024, the company had generated $4.5 billion in free cash flow. This robust cash performance allowed CNQ to return $1.7 billion to its shareholders through a mix of dividends and share repurchases.
In March, Canadian Natural Resources Limited (NYSE:CNQ) raised its quarterly dividend by 4.4% to C$0.5875 per share, marking its 25th consecutive year of dividend growth. CNQ is one of the best growing dividend stocks with a P/E ratio of 12.74. The stock offers a dividend yield of 5.59%, as of April 22.
9. QUALCOMM Incorporated (NASDAQ:QCOM)
Forward P/E Ratio as of April 22: 11.71
QUALCOMM Incorporated (NASDAQ:QCOM) is a California-based semiconductor manufacturing company. In fiscal Q1 2025, the company delivered impressive results, with revenue climbing to $11.7 billion—a 17.6% increase from the same period last year. This marked the third straight quarter of double-digit revenue growth and set a new record for the company. Its QCT segment, which includes core chip operations, brought in $10.1 billion, up 20% year-over-year. Notable contributors to this growth included a 13% rise in smartphone chip sales to $7.6 billion, a 61% jump in automotive revenue to $961 million, and a 36% increase in IoT-related sales to $1.5 billion.
While QUALCOMM Incorporated (NASDAQ:QCOM) is widely recognized for its wireless technology, its product lineup also spans software, processors, and modems. Its Snapdragon SoCs power several prominent VR platforms, including Axon’s VR training program, which uses the HTC Vive Focus 3 headset driven by Qualcomm’s Snapdragon XR2 chipset.
QUALCOMM Incorporated (NASDAQ:QCOM) currently pays a quarterly dividend of $0.89 per share for a dividend yield of 2.57%, as of April 22. The company wrapped up the quarter with more than $3.1 billion in cash and cash equivalents. It also produced nearly $4.6 billion in operating cash flow and returned $942 million to shareholders through dividends. The company has been rewarding shareholders with growing dividends for the past 21 years.
8. National Fuel Gas Company (NYSE:NFG)
Forward P/E Ratio as of April 22: 11.45
National Fuel Gas Company (NYSE:NFG) is a New York-based diversified energy company that is engaged in the exploration and development of natural gas and oil reserves. The stock is performing well this year, surging by over 27% since the start of 2025, significantly outperforming the broader market.
In fiscal Q1 2025, National Fuel Gas Company (NYSE:NFG) posted revenue of $549.4 million, reflecting a 4.59% increase from the same period last year. The Pipeline & Storage segment saw a $8.4 million (35%) boost in net income, mainly due to the implementation of higher rates following the Supply Corporation rate case settlement effective February 1, 2024. The Utility segment also performed well, with net income climbing $5.9 million (22%), supported by a three-year rate agreement in its New York service area.
Buoyed by rising natural gas prices and stronger performance across its business segments, National Fuel Gas Company (NYSE:NFG) raised its fiscal 2025 adjusted EPS guidance to between $6.50 and $7.00. NFG also maintained a healthy balance sheet, producing over $220 million in operating cash flow during the quarter. The company continues to stand out for its consistent shareholder returns, with 54 consecutive years of dividend growth and a 121-year track record of uninterrupted dividend payments. Its quarterly dividend sits at $0.515 per share for a dividend yield of 2.63%, as of April 22.
7. Wells Fargo & Company (NYSE:WFC)
Forward P/E Ratio as of April 22: 11.27
Wells Fargo & Company (NYSE:WFC) is an American financial services company that has a significant global presence. In the first quarter of 2025, the company posted revenue of $20.1 billion, a decline from $20.8 billion in the same quarter last year and falling short of analyst expectations by $610 million. Despite the dip in revenue, the bank saw an increase in net income, which rose to over $4.9 billion from $4.6 billion a year earlier.
Wells Fargo & Company (NYSE:WFC) remains a major player in the financial sector, with a wide footprint in consumer banking, corporate and investment banking, and wealth and investment management. Recently, the company has prioritized enhancing its digital capabilities and expanding its services for individual clients. Its operations are underpinned by strong regulatory practices, disciplined capital and liquidity oversight, and ongoing investment in technology.
Wells Fargo & Company (NYSE:WFC) continues to demonstrate financial resilience, backed by a solid Common Equity Tier 1 (CET1) ratio of 11.1%. Thanks to its robust cash position, the company has consistently maintained its dividend payments since 1988. It currently offers a quarterly dividend of $0.40 per share and has a dividend yield of 2.42%, as of April 22.
6. The J. M. Smucker Company (NYSE:SJM)
Forward P/E Ratio as of April 22: 11.24
The J. M. Smucker Company (NYSE:SJM) is an American food company, based in Ohio. The company manufactures a wide range of food and beverage products. On April 17, the company declared a quarterly dividend of $1.08 per share, which was in line with its previous dividend. Overall, it has raised its payouts for 23 consecutive years. The stock’s dividend yield on April 22 came in at 3.67%.
In fiscal Q3 2025, The J. M. Smucker Company (NYSE:SJM) posted revenue of $2.2 billion, reflecting a 2% year-over-year decline. The company reported a net loss of $6.22 per diluted share, mainly due to noncash impairment charges tied to its Sweet Baked Snacks unit. On an adjusted basis, earnings per share climbed 5% to $2.61. Gross profit increased by $55 million, or 7%, supported by stronger pricing, lower costs, and contributions from the Hostess Brands acquisition. These gains, however, were partially weighed down by softer sales volumes and the effects of recent business divestitures.
The J. M. Smucker Company (NYSE:SJM) also reported a healthy cash position for the quarter, generating close to $240 million in operating cash flow. Free cash flow totaled $151.3 million, and the company returned $114.4 million to shareholders through dividend payments. Due to its solid cash position, SJM is one of the best growing dividend stocks on our list.
5. ConocoPhillips (NYSE:COP)
Forward P/E Ratio as of April 22: 10.65
ConocoPhillips (NYSE:COP), recognized as one of the largest independent exploration and production companies globally by output and reserves, delivered a solid performance in the fourth quarter of 2024. The company reported revenue of $14.74 billion, surpassing forecasts by nearly $515 million. Its adjusted earnings per share came in at $1.98, beating expectations by $0.15.
A key highlight for the quarter was ConocoPhillips (NYSE:COP)’s $22.5 billion acquisition of Marathon in November 2024, which strengthened its resource base by more than 2 billion barrels of oil and gas with an average supply cost under $30 per barrel. Following this acquisition, the company saw a 14.8% year-over-year increase in production, reaching 2.183 million barrels of oil equivalent per day during the quarter.
ConocoPhillips (NYSE:COP) maintains a solid financial foundation, making it an appealing choice for income-focused investors. Over the past year, the company generated $20.1 billion in operating cash flow and reported $20.3 billion in total cash from operations. Remaining committed to shareholder returns, it paid out $3.6 billion in dividends. In October, the company raised its quarterly dividend by 34% to $0.78 per share, marking its tenth straight year of dividend growth. Its quarterly dividend comes in at $0.78 per share and has a dividend yield of 3.48%, as of April 22.
4. Enterprise Products Partners L.P. (NYSE:EPD)
Forward P/E Ratio as of April 22: 10.20
Enterprise Products Partners L.P. (NYSE:EPD) ranks fourth on our list of the best growing dividend stocks with low P/E ratios. The Texas-based midstream energy company operates an extensive portfolio of infrastructure for natural gas, crude oil, and pipelines. Its assets include pipelines, storage facilities, and systems for processing and transportation. The company’s revenue primarily comes from usage fees, making its performance more dependent on energy demand than on commodity price changes. Given the essential nature of energy, demand remains steady despite broader global conditions.
In the fourth quarter of 2024, Enterprise Products Partners L.P. (NYSE:EPD) reported revenue of $14.2 billion, exceeding analyst expectations by $74.5 million. The company generated $1.9 billion in operating income and posted a net income of $1.63 billion.
Enterprise Products Partners L.P. (NYSE:EPD)’s operating cash flow was robust, exceeding $2.3 billion, with adjusted free cash flow reaching $336 million for the quarter. This strong financial performance supported the company’s announcement of its 27th consecutive year of dividend growth in January 2025. It offers a quarterly dividend of $0.535 per share and has a dividend yield of 6.97%, as recorded on April 22.
3. British American Tobacco p.l.c. (NYSE:BTI)
Forward P/E Ratio as of April 22: 8.96
British American Tobacco p.l.c. (NYSE:BTI) is a multinational company that specializes in cigarettes, tobacco, and various other nicotine products. The company is emerging as a key player in the rapidly growing market for nicotine pouches, with its flagship brand, Velo, gaining traction. The company’s new Velo Plus product line, featuring larger, softer pouches, higher nicotine strengths, and more affordable pricing, is contributing to this growth.
For the fiscal year 2024, British American Tobacco p.l.c. (NYSE:BTI) reported £25.8 billion in revenue, a 5.2% decline compared to the previous year. This drop was mainly due to the sale of its Russian and Belarusian operations in September 2023 and unfavorable currency fluctuations. However, the company saw accelerated growth in the latter half of the year, driven by innovations in its New Categories segment, strategic investments in U.S. operations, and adjustments to wholesaler inventory levels.
British American Tobacco p.l.c. (NYSE:BTI) has also demonstrated robust cash flow generation, maintaining a 100% operating cash conversion rate over the past five years, and achieving 101% conversion in 2024, well above its 90% target. In 2024, it generated £7.9 billion in free cash flow before dividends, with operating cash flow exceeding £10 billion. Over the past five years, BTI has returned £28 billion to shareholders through consistent dividend increases and a sustainable share repurchase program. In 2024, the company initiated £0.7 billion in share buybacks, with plans for an additional £0.9 billion in 2025. It currently offers a quarterly dividend of $0.7431 per share, with a dividend yield of 6.99%, as of April 22.
2. U.S. Bancorp (NYSE:USB)
Forward P/E Ratio as of April 22: 8.67
U.S. Bancorp (NYSE:USB) is an American bank holding company, headquartered in Minnesota. The company provides a wide range of financial services, including commercial and consumer banking, payment processing, wealth management, and investment solutions.
In the first quarter of 2025, U.S. Bancorp (NYSE:USB) reported revenue of $6.93 billion, which showed a 3.7% growth from the same period last year. The revenue also beat analysts’ estimates by $18.6 million. The company’s net income for the quarter came in at $1.7 billion. The net interest margin was 2.72%, reflecting a 2 basis point increase year-over-year and a 1 basis point rise from the previous quarter. The CET1 capital ratio stood at 10.8% as of March 31, 2025, up from 10.6% at December 31, 2024. Average total loans grew by 2.1% compared to the previous year and by 0.9% compared to the prior quarter.
On March 11, U.S. Bancorp (NYSE:USB) declared a quarterly dividend of $0.50 per share, which was consistent with its previous dividend. Overall, the company has been rewarding shareholders with growing dividends for the past 14 years. The stock supports a dividend yield of 5.13%, as of April 22.
1. Bristol-Myers Squibb Company (NYSE:BMY)
Forward P/E Ratio as of April 22: 7.24
Bristol-Myers Squibb Company (NYSE:BMY) is a major American pharmaceutical firm based in New York, which focuses on developing and delivering innovative medicines. The company is advancing its growth strategy with a robust pipeline of therapies, especially its neuroscience drug, Cobenfy. Positive results from ongoing trials could significantly enhance the company’s long-term financial prospects.
With a consistent dividend policy and strategic expansion efforts, Bristol-Myers Squibb Company (NYSE:BMY) remains an appealing option for income-focused investors. In 2024, the approvals of Cobenfy and Breyanzi are expected to drive significant revenue growth. In the fourth quarter, its Growth Portfolio generated $6.4 billion—up 21% year-over-year—contributing to a 7.5% increase in total quarterly revenue, which reached $12.34 billion, driven by strong demand for its products. BMY offers an attractive entry point for investors, with a forward P/E ratio of 7.24, and is considered one of the best growing dividend stocks with low valuation.
On March 3, Bristol-Myers Squibb Company (NYSE:BMY) announced a quarterly dividend of $0.62 per share, which fell in line with its previous payout. The company has increased its dividends for 16 consecutive years and has never missed a dividend payment in its 93-year history, making it a reliable choice for income investors. The stock has a dividend yield of 4.98%, as of April 22.
Overall, Bristol-Myers Squibb Company (NYSE:BMY) ranks first on our list of the best growing dividend stocks with low P/E ratios. While we acknowledge the potential of BMY 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 BMY 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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