7 Most Undervalued Dividend Stocks to Buy According to Hedge Funds

4. ConocoPhillips (NYSE:COP)

Number of Hedge Fund Holders: 86

Forward P/E Ratio as of March 20: 11.46

ConocoPhillips (NYSE:COP) is a Texas-based global energy company that is engaged in hydrocarbon exploration and production. The company has recently focused on improving operational efficiency and expanding its LNG business. Its strong performance has been driven by disciplined cost management, successful integration of acquisitions, and progress in low-carbon technologies. In recognition of its sustainability efforts, the company received the Oil and Gas Methane Partnership 2.0 Gold Standard in 2024, underscoring its commitment to lowering emissions.

As a company engaged in hydrocarbon exploration and production, ConocoPhillips (NYSE:COP) experienced a notable increase in output during the fourth quarter of 2024. Production rose 14.8% year-over-year to 2,183 thousand barrels of oil equivalent per day (MBOED), largely due to strategic acquisitions, including the completion of its Marathon Oil acquisition in November 2024. The stock has a forward P/E multiple of 11x, which makes it one of the most undervalued stocks according to hedge funds.

ConocoPhillips (NYSE:COP) maintained a strong position, generating $20.1 billion in operating cash flow for the year, with total cash from operations reaching $20.3 billion. Shareholder returns remained a priority, with $3.6 billion distributed through dividends. Following a 34% increase in October, the company’s quarterly dividend now stands at $0.78 per share. Its dividend yield comes in at 3.05%, as of March 20. The company has been rewarding shareholders with growing dividends for the past 10 years.