5 Best Undervalued Dividend Stocks to Buy Now

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1. Pfizer Inc. (NYSE:PFE)

Number of Hedge Fund Holders: 75
P/E Ratio (TTM) as of April 17: 7.5

An American multinational biotech and pharmaceutical company, Pfizer Inc. (NYSE:PFE) ranks first on our list of the best dividend stocks. The company offers a quarterly dividend of $0.41 per share and has paid regular dividends to shareholders consistently for the past 337 quarters. Moreover, it has raised its payouts for 13 years straight. The stock has a dividend yield of 3.98%, as of April 17.

At the end of December 2022, 75 hedge funds in Insider Monkey’s database reported having stakes in Pfizer Inc. (NYSE:PFE), down from 77 in the previous quarter. These stakes have a collective value of over $2.5 billion.

Diamond Hill Capital mentioned Pfizer Inc. (NYSE:PFE) in its Q3 2022 investor letter. Here is what the firm has to say:

“Also among our bottom contributors were health care products manufacturer Abbott Labs, global pharmaceutical company Pfizer Inc. (NYSE:PFE), media and technology giant Alphabet, and insurance company American International Group (AIG). Although Pfizer continues to report strong performance of its core drugs, sales of its COVID vaccine and treatment have likely peaked and sales are expected to decline going forward. We remain optimistic about the company long term as we believe management is taking the company in the right direction, focusing R&D, and making strategic acquisitions with profits generated from COVID vaccine sales.”

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