Stocks

3 Remarkably Undervalued High-Yield Dividend Stocks for Income and Value Investors

Published January 22, 2024

Investors in search of substantial income streams coupled with enticing value propositions would be wise to turn their attention to a trio of stocks currently offering high dividend yields at bargain prices. These stocks are not just attractive for their hefty yields; they also embody the qualities essential for both income-focused and value-oriented investors. We're referring to Verizon Communications Inc. VZ, Pfizer Inc. PFE, and Ares Capital Corporation ARCC.

Verizon Communications Inc. VZ

As an established player in the telecommunications industry, VZ holds a prominent place in the market, including being a part of the Dow Jones Industrial Average. Operating out of its headquarters on the prominent 1095 Avenue of the Americas in Midtown Manhattan, New York City, while incorporated in Delaware, VZ provides a wide range of telecommunications services with a reputation for steady revenue and solid dividends. Its current undervaluation marks an opportune moment for investors to consider adding VZ to their portfolios for a dependable income stream.

Pfizer Inc. PFE

PFE isn't just a household name; it's a powerhouse in the pharmaceutical and biotechnology realms. With its headquarters in the pulsing heart of Manhattan, PFE celebrates its origins with the legacy of its co-founder, Charles Pfizer. The company is recognized for its leading-edge development and production of medications and vaccines across a variety of therapeutic areas. Its portfolio includes several blockbuster drugs which consistently deliver over 1 billion USD in yearly revenues. For income investors, PFE's stock is currently underpriced, presenting a prime opportunity to capitalize on its high yield dividends and potential for value appreciation.

Ares Capital Corporation ARCC

When it comes to business development companies, ARCC stands out as a top contender, particularly for those interested in high dividend yields. Offering financing solutions to middle-market companies, ARCC has an illustrious history of delivering substantial yields to its shareholders. At present valuations that fail to reflect its intrinsic profitability and performance, ARCC is another stock that screams of being undervalued, making it an attractive pick for those seeking to boost their income portfolio with discerning value picks.

income, value, dividend