Investors looking for opportunities in undervalued dividend stocks should keep an eye on the following ten selections for 2026. These companies offer attractive yields while presenting significant potential for growth and stability.
Top 10 Undervalued Dividend Stocks to Watch in 2026
- Verizon Communications (VZ)
- Kraft Heinz (KHC)
- Energy Transfer (ET)
- Healthpeak (DOC)
- Realty Income (O)
- Duke Energy (DUK)
- Alliant Energy (LNT)
- Mondelez International (MDLZ)
- Clorox (CLX)
- Devon Energy (DVN)
1. Verizon Communications (VZ)
Verizon maintains a strong position with a 7% dividend yield and trades at approximately 25% below its fair value. The company benefits from an oligopolistic market structure, which is expected to drive margin expansion over time.
2. Kraft Heinz (KHC)
Kraft Heinz is currently undergoing a split into two entities while maintaining its dividend at current levels. The stock is rated five stars and trades at over a 50% discount to fair value, providing solid upside potential in the food sector.
3. Energy Transfer (ET)
This energy firm holds a four-star rating and offers a steady dividend yield. Currently, it trades at a 20% discount to fair value. Despite market pressures from fluctuating oil prices, its business model remains solid.
4. Healthpeak (DOC)
As a healthcare REIT, Healthpeak trades at a significant discount to fair value, boasting a 7% dividend yield. The company focuses on medical office buildings and related facilities, making it an attractive option as the real estate sector shows promising undervaluation.
5. Realty Income (O)
Realty Income holds a diversified portfolio with over 15,000 locations and offers a monthly dividend. The stock is priced at a 20% discount to its fair value with a 5.5% yield, appealing to income-focused investors.
6. Duke Energy (DUK)
Duke Energy continues to be favored for its strong positioning in the regulatory environment, despite having a deeper discount to fair value. Investors might consider it a reliable long-term hold as demand for electricity grows.
7. Alliant Energy (LNT)
Alliant is recognized for its 4-star rating and offers a 3.1% dividend yield. It trades at a 7% discount to fair value, suggesting growth potential in line with demand for energy.
8. Mondelez International (MDLZ)
Mondelez, a potential choice for international exposure in the food sector, trades at a significant discount with a 3% dividend yield. The firm derives a substantial portion of its revenue from faster-growing emerging markets.
9. Clorox (CLX)
Clorox stands out as a dividend aristocrat trading at a deep discount to fair value and currently provides a 4.6% yield. Its historical resilience and wide economic moat make it a compelling investment, despite recent margin pressures.
10. Devon Energy (DVN)
Devon Energy is rated four stars and trades at a 30% discount. The company has adopted a variable dividend model, offering potential for enhanced returns depending on oil prices. Investors should monitor this stock for its solid foundation amidst market volatility.
These ten undervalued dividend stocks highlight opportunities across various sectors as we look toward 2026. With attractive yields and growth prospects, they merit further investigation for any dividend-focused portfolio.
