Tuesday, May 21, 2024

7 Undervalued Dividend Stocks to Buy Amid Market Volatility: A Strategic Approach for Investors

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7 Dividend Stocks to Buy at a 52-Week Low

In the world of investing, dividend stocks have always created a stable foundation for portfolios. However, with the market reaching new record highs, many investors are overlooking dividend stocks, especially those trading at or near their 52-week lows. But what if the slump in these stocks is just a temporary glitch? This could present a ripe opportunity for investors, especially in a still-volatile market environment.

Here are seven dividend stocks that have seen significant drops in the last 12 months but show promising signs of a turnaround, offering both value and income for investors.

Pfizer (NYSE:PFE)

Pfizer is currently undervalued, trading near its 52-week low. Despite lower revenue and earnings post-COVID-19 boom, the company has shown resilience by acquiring Seagen, doubling its oncology portfolio. With an expected 24% earnings growth and a juicy 6.10% dividend yield, PFE presents a compelling buy for forward-looking investors.

Philip Morris (NYSE:PM)

Symbolizing a classic “sin stock,” Philip Morris has continued to sell its products despite economic fluctuations. With slight increases in revenue and earnings, and trading at an attractive 14.5x forward earnings, PM stock appears ripe for growth, especially with potentially lower interest rates in 2024.

Bristol-Myers Squibb (NYSE:BMY)

Trading near five-year lows with a forward P/E ratio of just 7x and a dividend yield of 4.93%, BMY stock is undervalued. Despite facing competition for its flagship drug, Eliquis, and acquisitions diluting earnings short-term, the company’s deep oncology portfolio promises a potential upside.

Newmont Mining (NYSE:NEM)

As the world’s largest gold mining company, Newmont Mining offers an interesting play for those cautious about the economy’s direction. With gold demand from central banks soaring and the stock trading 31% lower in the past 12 months, NEM stock, boasting a 4.80% yield, is attractive for dividend seekers.

Hormel Foods (NYSE:HRL)

Despite facing inflationary pressures, Hormel Foods, a Dividend King, has the potential for a strong rebound as input costs stabilize. Trading at five-year lows with ambitious growth plans, HRL stock promises value, backed by 58 consecutive years of dividend increases.

Albemarle (NYSE:ALB)

Albemarle stands at the forefront of the lithium revolution, essential for electric vehicle batteries. With a forward P/E of merely 5.4x and strong analyst optimism, ALB is undervalued. As a Dividend Aristocrat, it also assures income growth, having raised its dividend for 28 straight years.

Nutrien (NYSE:NTR)

As the world’s largest potash producer and a major nitrogen fertilizer producer, Nutrien is set to benefit from increasing demand in agriculture. Despite its stock trading 36% lower over the past year, the anticipated rise in potash application positions NTR as an attractive investment, complemented by a solid 4.22% dividend yield.

In a market that’s increasingly focused on short-term gains and speculative investments, these seven dividend stocks offer a blend of value, stability, and income growth. For investors looking to build resilient portfolios, these picks present a strategic opportunity to buy in at a 52-week low, positioning well for the eventual market turnaround.

Jordan Clark
Jordan Clarkhttps://www.businessorbital.com/
Jordan Clark brings a dynamic and investigative approach to business reporting. Holding a degree in Business Administration and a certification in Data Analysis, Jordan has an eye for detail and a knack for uncovering the stories behind the numbers. His career began in the bustling world of Silicon Valley startups, giving him firsthand experience in tech entrepreneurship and venture capital. Jordan's reports often focus on technology's impact on business, startup culture, and emerging

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