10 Undervalued Dividend Stocks for the Remainder of 2025

10 Undervalued Dividend Stocks for the Remainder of 2025

By Steven Orlowski, CFP, CNPR

As we head deeper into 2025, the investing landscape is evolving. Interest rates may be peaking, inflation remains sticky, and market volatility continues to be a theme. For income-oriented investors, dividend-paying stocks are as attractive as ever—particularly those that are undervalued and offer both income and upside potential.

Below are ten undervalued dividend stocks worth considering for the remainder of 2025. These companies combine attractive yields, strong fundamentals, and favorable valuations relative to historical metrics and peers.

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1. Verizon Communications Inc. (VZ)

• Dividend Yield: ~6.6%

• Forward P/E: ~8.3

Verizon remains one of the steadiest plays in telecom. While growth has slowed, its strong cash flow and commitment to its dividend make it an appealing income stock. At under 9x forward earnings, it’s trading well below market averages.

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2. Pfizer Inc. (PFE)

• Dividend Yield: ~5.4%

• Forward P/E: ~10.7

Pfizer has suffered from post-pandemic hangover, but that’s created a valuation opportunity. The company has a robust drug pipeline, strong balance sheet, and a long dividend history. Investors patient enough to wait for the rebound could be rewarded.

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3. Altria Group Inc. (MO)

• Dividend Yield: ~8.6%

• Forward P/E: ~8.2

Despite regulatory headwinds, Altria remains a cash cow. Its high dividend is supported by stable (albeit declining) revenue and excellent margins. MO is a classic value-dividend play for those comfortable with its risk profile.

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4. International Business Machines Corp. (IBM)

• Dividend Yield: ~4.0%

• Forward P/E: ~14.1

IBM has been quietly repositioning itself around AI and hybrid cloud services. With a stable income stream, decades of dividend growth, and renewed investor interest in enterprise tech, IBM is still undervalued relative to its tech peers.

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5. 3M Company (MMM)

• Dividend Yield: ~5.7%

• Forward P/E: ~11.9

Litigation risks have kept MMM’s stock price subdued, but much of that seems priced in. With a long history of dividend increases and a diversified business model, 3M could offer contrarian value for income seekers.

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6. Walgreens Boots Alliance Inc. (WBA)

• Dividend Yield: ~5.8%

• Forward P/E: ~7.4

Walgreens has faced numerous challenges, but its valuation is now compelling. The dividend appears secure for the near term, and turnaround efforts—especially in healthcare services—could drive upside.

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7. Leggett & Platt, Inc. (LEG)

• Dividend Yield: ~7.1%

• Forward P/E: ~11.3

This under-the-radar industrial firm is a Dividend King with over 50 years of increases. Recent price weakness related to cyclical trends offers a chance to lock in a high yield and wait for recovery.

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8. Brookfield Renewable Partners L.P. (BEP)

• Dividend Yield: ~5.9%

• Price-to-Book Ratio: ~1.1

Clean energy remains a long-term secular trend, and BEP offers a way to play it while earning solid income. Despite sector headwinds, its assets and cash flow are resilient. The unit price appears attractively discounted.

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9. AT&T Inc. (T)

• Dividend Yield: ~6.4%

• Forward P/E: ~7.7

AT&T's deleveraging story is progressing steadily. While it may not offer growth fireworks, the valuation and dividend make it compelling for conservative income investors. Its recent execution has improved sentiment.

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10. Kraft Heinz Co. (KHC)

• Dividend Yield: ~4.9%

• Forward P/E: ~11.5

KHC has transformed itself since its troubled merger era. With stable food brands, better capital discipline, and a high yield, it remains undervalued relative to the broader consumer staples sector.

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Final Thoughts

Dividend investing isn’t just about the yield—it’s about finding companies that can sustain and grow those payouts over time. The stocks above offer a blend of yield, value, and staying power. While no stock is risk-free, these ten could provide a solid foundation for an income-focused portfolio as we navigate the back half of 2025.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Always conduct your own research or consult a financial advisor before investing.