5 Undervalued Dividend Aristocrats To Buy According to Analysts

In this article, we discuss 5 undervalued dividend stocks to buy according to analysts. If you want to read our detailed analysis of dividend stocks and their performance over the years, go directly to read 12 Undervalued Dividend Aristocrats To Buy According to Analysts. 

5. Chevron Corporation (NYSE:CVX)

Upside Potential as of May 7: 18.75%
P/E Ratio as of May 7: 8.65

Chevron Corporation (NYSE:CVX) is a California-based oil and natural gas company. In April, UBS initiated its coverage of the stock with a Buy rating and a $212 price target, appreciating the company’s strong free cash flow generation.

Chevron Corporation (NYSE:CVX), one of the best dividend aristocrat stocks, currently pays a quarterly dividend of $1.51 per share. The company has been raising its dividends consistently for the past 36 years. The stock has a dividend yield of 3.77%, as of May 7.

At the end of Q4 2022, 57 hedge funds in Insider Monkey’s database owned stakes in Chevron Corporation (NYSE:CVX), with a total value of over $32.2 billion.

Carillon Tower Advisers mentioned Chevron Corporation (NYSE:CVX) in its Q4 2022 investor letter. Here is what the firm has to say:

“Energy performed well during the fourth quarter, with the sector up about 23%. Investors returned to the sector after the Organization of the Petroleum Exporting Countries (OPEC) signaled it would reduce production. Chevron Corporation (NYSE:CVX) reported strong quarterly results while buying back stock, paying a healthy dividend, and maintaining a strong balance sheet.”

4. Emerson Electric Co. (NYSE:EMR)

Upside Potential as of May 7: 20.1%
P/E Ratio as of May 7: 19.8

Emerson Electric Co. (NYSE:EMR) is a manufacturing company that specializes in products belonging to various industries. On May 3, the company declared a quarterly dividend of $0.52 per share, which was consistent with its previous dividend. The company maintains a 66-year streak of dividend growth, which makes it one of the best dividend aristocrat stocks on our list. The stock has a dividend yield of 2.46%, as recorded on May 7.

Mizuho maintained a Neutral rating on Emerson Electric Co. (NYSE:EMR) with a $90 price target, appreciating the company’s recent quarterly earnings.

At the end of December 2022, 32 hedge funds tracked by Insider Monkey had stakes in Emerson Electric Co. (NYSE:EMR), with a collective value of over $781 million.

3. Exxon Mobil Corporation (NYSE:XOM)

Upside Potential as of May 7: 20.3%
P/E Ratio as of May 7: 7.36

Exxon Mobil Corporation (NYSE:XOM) is a Texas-based energy company, that currently pays a quarterly dividend of $0.91 per share. The company has been growing its dividends consistently for the past 40 years, which makes it one of the best dividend aristocrat stocks on our list. The stock’s dividend yield on May 7 came in at 3.35%.

As of the close of Q4 2022, the number of hedge funds owning stakes in Exxon Mobil Corporation (NYSE:XOM) grew to 79, from 75 a quarter earlier, according to Insider Monkey’s Q4 data. These stakes have a collective value of over $7.1 billion.

2. Chubb Limited (NYSE:CB)

Upside Potential as of May 7: 20.9%
P/E Ratio as of May 7: 15.88

An American insurance company, Chubb Limited (NYSE:CB) is next on our list of the best dividend aristocrat stocks. In April, Barclays raised its price target on the stock to $260 with an Overweight rating on the shares, following the company’s recent quarterly earnings beat. The firm also highlighted the company’s consumer business.

Chubb Limited (NYSE:CB) currently pays a quarterly dividend of $0.83 per share for a dividend yield of 1.67%, as of May 7. The company has a 29-year run of raising its dividends. Moreover, it has paid regular dividends to shareholders for past 121 years.

At the end of Q4 2022, the number of hedge funds tracked by Insider Monkey owning stakes in Chubb Limited (NYSE:CB) grew to 45, from 41 in the previous quarter. The collective value of these stakes is over $2.18 billion.

Aristotle Capital Management mentioned Chubb Limited (NYSE:CB) in its Q1 2022 investor letter. Here is what the firm has to say:

“Our investment in Chubb began in the fourth quarter of 2015, shortly after ACE Limited announced it would acquire the Chubb Corporation, creating the largest global property and casualty insurance company by underwriting income. During our nearly seven-year holding period, the company’s combination progressed leading to the realization of main catalysts we had identified. These included cost savings, broadened product offerings and an expanded customer base, as well as enhanced distribution capabilities and improved pricing due to scale. In addition, Chubb successfully grew its profitable high-net-worth personal lines. While we still consider Chubb to be a high-quality business, few catalysts remain after what was, in our opinion, a remarkable run of successful business execution. As such, we decided to step aside in favor of what we believe to be a more optimal investment in Blackstone.”

1. Archer-Daniels-Midland Company (NYSE:ADM)

Upside Potential as of May 7: 32.9%
P/E Ratio as of May 7: 9.64

Archer-Daniels-Midland Company (NYSE:ADM) tops our list of the best dividend aristocrat stocks, with a P/E ratio of 9.64, as of May 7. The food processing company pays a quarterly dividend of $0.45 per share and its dividend yield on May 7 came in at 2.37%. The company has raised its dividends for 50 years straight.

At the end of Q4 2022, 40 hedge funds tracked by Insider Monkey reported owning stakes in Archer-Daniels-Midland Company (NYSE:ADM), up from 37 in the previous quarter. These stakes have a consolidated value of $701.5 million.

You can also take a look at 12 Best Performing Dividend ETFs in 2023 and 10 Best Bitcoin Stocks to Invest in

Follow Insider Monkey on Twitter