5 Undervalued Stocks That Just Raised Their Dividends

In this article, we discuss 5 best dividend stocks that are undervalued and have just raised their payouts. If you want to read our detailed analysis of dividend and value stocks and their previous performance, go directly to read 12 Undervalued Stocks That Just Raised Their Dividends. 

5. Sun Life Financial Inc. (NYSE:SLF)

PE Ratio (TTM): 13.01

Sun Life Financial Inc. (NYSE:SLF) is a Canadian financial services company that offers a wide range of insurance and other related services to its consumers. On May 9, the company hiked its quarterly dividend by 3.8% to C$0.81 per share. Through this increase, the company achieved its ninth consecutive annual dividend hike, which makes SLF one of the best dividend stocks on our list. The stock has a dividend yield of 4.60%, as of May 13.

As of the end of Q4 2023, 13 hedge funds in Insider Monkey’s database owned stakes in Sun Life Financial Inc. (NYSE:SLF), up from 12 in the previous quarter. These stakes are collectively valued at over $98.6 million. Among these hedge funds, GLG Partners was the company’s leading stakeholder in Q4.

4. Cabot Corporation (NYSE:CBT)

PE Ratio (TTM): 12.95

Cabot Corporation (NYSE:CBT) is an American specialty chemicals company that offers a wide range of products for various industries. The company’s quarterly dividend comes in at $0.43 per share and has a dividend yield of 1.69%, as of May 13. In May this year, the company raised its dividend for the 12th consecutive year. Moreover, it has been paying regular dividends to shareholders since 1968, which makes CBT one of the best dividend stocks on our list.

Insider Monkey’s database of Q4 2023 indicated that 20 hedge funds held stakes in Cabot Corporation (NYSE:CBT), which remained the same as in the previous quarter. The total value of these stakes is over $114 million.

3. American International Group, Inc. (NYSE:AIG)

PE Ratio (TTM): 11.97

An American multinational insurance company, American International Group, Inc. (NYSE:AIG) is next on our list of the best dividend stocks. On May 2, the company announced an 11.1% hike in its quarterly dividend to $0.40 per share. The stock has a dividend yield of 2%, as of May 13.

American International Group, Inc. (NYSE:AIG) remained popular among elite funds in Q4 2023 as hedge fund positions in the company jumped to 51, from 42 in the previous quarter, according to Insider Monkey’s database. The stakes owned by these hedge funds have a total value of over $2 billion.

2. Enact Holdings, Inc. (NASDAQ:ACT)

PE Ratio (TTM): 7.85

Enact Holdings, Inc. (NASDAQ:ACT) is a North Carolina-based finance and insurance company that offers mortgage-related insurance services. The company initiated its dividend policy in 2022 and has raised its payouts twice since then. On May 1, the company hiked its quarterly dividend by 16% to $0.185 per share. The stock has a dividend yield of 2.33%, as of May 13.

The number of hedge funds tracked by Insider Monkey holding stakes in Enact Holdings, Inc. (NASDAQ:ACT) grew to 21 in Q4 2023, from 16 in the previous quarter. These stakes are collectively valued at over $121.8 million. With roughly 1.3 million shares, Glendon Capital Management was the company’s leading stakeholder in Q4.

1. TEGNA Inc. (NYSE:TGNA)

PE Ratio (TTM): 5.30

TEGNA Inc. (NYSE:TGNA) tops our list of the best dividend stocks that just raised their payouts. The American broadcast and digital media company pays a quarterly dividend of $0.125 per share and has a dividend yield of 3.28%, as of May 13. In May this year, the company raised its dividend third time after the pandemic of 2020.

At the end of December 2023, 25 hedge funds in Insider Monkey’s database held stakes in TEGNA Inc. (NYSE:TGNA), compared with 29 in the previous quarter. These stakes have a total value of nearly $261 million.

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