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Yahoo
10-05-2025
- Business
- Yahoo
Caterpillar Inc. (CAT): Among the Undervalued Dividend Aristocrats to Buy Now
We recently published a list of the . In this article, we are going to take a look at where Caterpillar Inc. (NYSE:CAT) stands against other undervalued dividend aristocrats. Dividend-paying stocks are regaining popularity this year as investors look for ways to soften the blow of current market challenges. The S&P Dividend Aristocrats Index, which tracks the performance of companies with at least 25 consecutive years of dividend growth, has fallen by a little over 1.2% since the start of 2025, compared with a 4.1% decline of the broader market. Analysts point out that dividends not only help boost overall returns early on, but there's also clear evidence that companies with growing dividends tend to deliver stronger performance. These stocks often provide better returns with less risk, stay ahead of inflation, and hold up well whether interest rates are climbing or falling. According to S&P Indices' 'Research Insights,' dividends have accounted for roughly a third of total returns since 1926. This is largely because, unlike stock prices that can fluctuate, dividends represent a guaranteed gain once paid out. Even in strong bull markets like the 1950s, 1980s, and 1990s, dividends played a meaningful role in enhancing investor returns. However, their true value becomes especially clear in weaker market cycles, when capital gains are modest or even negative, dividends have often made up more than half of the total return. In some cases, they've been the deciding factor in keeping returns positive. In essence, dividends tend to matter most when market performance falls short. A report from Fenimore Asset Management reveals that between 1972 and 2016, companies that either raised or initiated dividends consistently outperformed those that did not. Historically, a dividend hike has often been viewed as a sign that management is confident in the company's future. This concept is even the basis of the 'Dividend Discount Model,' which values a company based on expected dividend growth. On average, firms that grew or introduced dividends delivered annualized returns of 9.8%, outpacing businesses that didn't pay dividends. These companies typically enjoy rising sales and earnings, generating more cash than they need for reinvestment, allowing them to reward shareholders regularly. This pattern also reflects a strong commitment by management and the board to return value to investors. In contrast, companies that cut or eliminate dividends often struggle financially. These underperformers posted annualized returns of -0.6% during the said period, and such reductions usually point to a weakening business, limited growth prospects, or a need to redirect cash toward internal needs rather than shareholder payouts. The report also highlighted that one of the key advantages of a growing dividend is its ability to preserve purchasing power over time. As inflation gradually pushes up the cost of living, dividend income needs to grow just to keep up. Assuming a long-term inflation rate of 2%, dividends must increase by at least that much to avoid losing value in real terms. While investors seeking income may be drawn to stocks with high current yields, it's just as important to consider how fast those dividends are growing. Focusing solely on yield without looking at growth can be short-sighted. In the long run, companies that steadily raise their dividends provide income that keeps pace with or even exceeds inflation, offering greater financial security. A construction crew operating a hydraulic shovel during a nighttime project. For this list, we scanned the list of the S&P Dividend Aristocrats– the stocks that have raised their payouts for 25 years or more– and identified stocks with low forward P/E ratios. From there, we picked 11 dividend aristocrats with forward P/E ratios below 20, as of May 7, and ranked them accordingly. At Insider Monkey, we are obsessed with hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). Forward P/E Ratio as of May 7: 16.56 Caterpillar Inc. (NYSE:CAT) ranks seventh on our list of the best dividend aristocrat stocks. The Texas-based manufacturing company is known for producing construction and mining equipment, along with off-highway diesel and natural gas engines and gas turbines. The company operates across all continents through its extensive global dealer network. Over time, it has broadened its range of offerings. It has licensed its brand for a line of apparel and footwear, and it also offers financial services through its subsidiary, Cat Financial. Caterpillar Inc. (NYSE:CAT) reported mixed earnings in the first quarter of 2025, with revenue of $14.2 billion, which fell by nearly 10% from the same period last year. The decline was mainly attributed to a $1.1 billion drop in sales volume and a negative pricing impact of $250 million. The lower sales volume was largely influenced by shifts in dealer inventory levels. Operating profit margin stood at 18.1% in the first quarter of 2025, down from 22.3% in the same period of 2024. Though Caterpillar Inc. (NYSE:CAT) suffered losses on various fronts, the company's cash position still remained stable. Its enterprise cash flow for the quarter came in at $1.3 billion, and its enterprise cash amounted to $3.6 billion. The company remained committed to its shareholder obligation, returning $3.7 billion to investors through dividends and share repurchases. It currently pays a quarterly dividend of $1.41 per share and has a dividend yield of 1.74%, as of May 7. The company's dividend growth streak spans 30 years. Overall, CAT ranks 7th on our list of the best undervalued dividend aristocrats to buy now. While we acknowledge the potential of CAT as an investment, our conviction lies in the belief that some deeply undervalued dividend stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued dividend stock that is more promising than CAT but that trades at 10 times its earnings and grows its earnings at double digit rates annually, check out our report about the . READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at . Sign in to access your portfolio
Yahoo
10-05-2025
- Business
- Yahoo
Target Corporation (TGT): One of the Undervalued Dividend Aristocrats to Buy Now
We recently published a list of the . In this article, we are going to take a look at where Target Corporation (NYSE:TGT) stands against other undervalued dividend aristocrats. Dividend-paying stocks are regaining popularity this year as investors look for ways to soften the blow of current market challenges. The S&P Dividend Aristocrats Index, which tracks the performance of companies with at least 25 consecutive years of dividend growth, has fallen by a little over 1.2% since the start of 2025, compared with a 4.1% decline of the broader market. Analysts point out that dividends not only help boost overall returns early on, but there's also clear evidence that companies with growing dividends tend to deliver stronger performance. These stocks often provide better returns with less risk, stay ahead of inflation, and hold up well whether interest rates are climbing or falling. According to S&P Indices' 'Research Insights,' dividends have accounted for roughly a third of total returns since 1926. This is largely because, unlike stock prices that can fluctuate, dividends represent a guaranteed gain once paid out. Even in strong bull markets like the 1950s, 1980s, and 1990s, dividends played a meaningful role in enhancing investor returns. However, their true value becomes especially clear in weaker market cycles, when capital gains are modest or even negative, dividends have often made up more than half of the total return. In some cases, they've been the deciding factor in keeping returns positive. In essence, dividends tend to matter most when market performance falls short. A report from Fenimore Asset Management reveals that between 1972 and 2016, companies that either raised or initiated dividends consistently outperformed those that did not. Historically, a dividend hike has often been viewed as a sign that management is confident in the company's future. This concept is even the basis of the 'Dividend Discount Model,' which values a company based on expected dividend growth. On average, firms that grew or introduced dividends delivered annualized returns of 9.8%, outpacing businesses that didn't pay dividends. These companies typically enjoy rising sales and earnings, generating more cash than they need for reinvestment, allowing them to reward shareholders regularly. This pattern also reflects a strong commitment by management and the board to return value to investors. In contrast, companies that cut or eliminate dividends often struggle financially. These underperformers posted annualized returns of -0.6% during the said period, and such reductions usually point to a weakening business, limited growth prospects, or a need to redirect cash toward internal needs rather than shareholder payouts. The report also highlighted that one of the key advantages of a growing dividend is its ability to preserve purchasing power over time. As inflation gradually pushes up the cost of living, dividend income needs to grow just to keep up. Assuming a long-term inflation rate of 2%, dividends must increase by at least that much to avoid losing value in real terms. While investors seeking income may be drawn to stocks with high current yields, it's just as important to consider how fast those dividends are growing. Focusing solely on yield without looking at growth can be short-sighted. In the long run, companies that steadily raise their dividends provide income that keeps pace with or even exceeds inflation, offering greater financial security. A woman purchasing groceries at a Target store, with a cart full of products. For this list, we scanned the list of the S&P Dividend Aristocrats– the stocks that have raised their payouts for 25 years or more– and identified stocks with low forward P/E ratios. From there, we picked 11 dividend aristocrats with forward P/E ratios below 20, as of May 7, and ranked them accordingly. At Insider Monkey, we are obsessed with hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). Forward P/E Ratio as of May 7: 10.36 Target Corporation (NYSE:TGT) is an American retailer known for its chain of discount stores and hypermarkets. The company has positioned itself uniquely by combining affordability with a more refined shopping experience. This approach, supported by its exclusive and private-label products, has earned the company a dedicated customer base. While this strategy has historically driven success, Target is currently facing challenges amid a tougher economic environment and changing consumer preferences, which have put pressure on its sales. Since the beginning of 2025, the stock has dropped more than 29%. As consumers become more cost-conscious and reduce spending on non-essential, higher-priced goods, Target Corporation (NYSE:TGT) has seen an impact on its revenue. This shift contributed to the company's weaker financial performance in 2024. For the fiscal year ending February 1, net sales slipped by 0.8% compared to the previous year, and adjusted earnings per share declined by 1% to $8.86. Despite these headwinds, Target Corporation (NYSE:TGT)'s solid cash flow supports its status as a dependable dividend payer. In FY24, the company generated $7.3 billion in operating cash flow and returned $513 million to shareholders through dividends in the fourth quarter, slightly above the $508 million distributed in the same quarter the year before. In addition, the company has a 53-year track record of dividend growth under its belt. Its quarterly dividend comes in at $1.12 per share and has a dividend yield of 4.62%, as of May 7. Overall, TGT ranks 1st on our list of the best undervalued dividend aristocrats to buy now. While we acknowledge the potential of TGT as an investment, our conviction lies in the belief that some deeply undervalued dividend stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued dividend stock that is more promising than TGT but that trades at 10 times its earnings and grows its earnings at double digit rates annually, check out our report about the . READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at .
Yahoo
10-05-2025
- Business
- Yahoo
Exxon Mobil Corporation (XOM): One of the Undervalued Dividend Aristocrats to Buy Now
We recently published a list of the . In this article, we are going to take a look at where Exxon Mobil Corporation (NYSE:XOM) stands against other undervalued dividend aristocrats. Dividend-paying stocks are regaining popularity this year as investors look for ways to soften the blow of current market challenges. The S&P Dividend Aristocrats Index, which tracks the performance of companies with at least 25 consecutive years of dividend growth, has fallen by a little over 1.2% since the start of 2025, compared with a 4.1% decline of the broader market. Analysts point out that dividends not only help boost overall returns early on, but there's also clear evidence that companies with growing dividends tend to deliver stronger performance. These stocks often provide better returns with less risk, stay ahead of inflation, and hold up well whether interest rates are climbing or falling. According to S&P Indices' 'Research Insights,' dividends have accounted for roughly a third of total returns since 1926. This is largely because, unlike stock prices that can fluctuate, dividends represent a guaranteed gain once paid out. Even in strong bull markets like the 1950s, 1980s, and 1990s, dividends played a meaningful role in enhancing investor returns. However, their true value becomes especially clear in weaker market cycles, when capital gains are modest or even negative, dividends have often made up more than half of the total return. In some cases, they've been the deciding factor in keeping returns positive. In essence, dividends tend to matter most when market performance falls short. A report from Fenimore Asset Management reveals that between 1972 and 2016, companies that either raised or initiated dividends consistently outperformed those that did not. Historically, a dividend hike has often been viewed as a sign that management is confident in the company's future. This concept is even the basis of the 'Dividend Discount Model,' which values a company based on expected dividend growth. On average, firms that grew or introduced dividends delivered annualized returns of 9.8%, outpacing businesses that didn't pay dividends. These companies typically enjoy rising sales and earnings, generating more cash than they need for reinvestment, allowing them to reward shareholders regularly. This pattern also reflects a strong commitment by management and the board to return value to investors. In contrast, companies that cut or eliminate dividends often struggle financially. These underperformers posted annualized returns of -0.6% during the said period, and such reductions usually point to a weakening business, limited growth prospects, or a need to redirect cash toward internal needs rather than shareholder payouts. The report also highlighted that one of the key advantages of a growing dividend is its ability to preserve purchasing power over time. As inflation gradually pushes up the cost of living, dividend income needs to grow just to keep up. Assuming a long-term inflation rate of 2%, dividends must increase by at least that much to avoid losing value in real terms. While investors seeking income may be drawn to stocks with high current yields, it's just as important to consider how fast those dividends are growing. Focusing solely on yield without looking at growth can be short-sighted. In the long run, companies that steadily raise their dividends provide income that keeps pace with or even exceeds inflation, offering greater financial security. Aerial view of a major oil rig in the middle of the sea, pumping crude oil. For this list, we scanned the list of the S&P Dividend Aristocrats– the stocks that have raised their payouts for 25 years or more– and identified stocks with low forward P/E ratios. From there, we picked 11 dividend aristocrats with forward P/E ratios below 20, as of May 7, and ranked them accordingly. At Insider Monkey, we are obsessed with hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). Forward P/E Ratio as of May 7: 13.44 Exxon Mobil Corporation (NYSE:XOM) ranks fourth on our list of the best undervalued dividend aristocrat stocks. The American multinational oil and gas company oversees a top-tier portfolio of resources and stands as one of the largest global players in integrated fuels, lubricants, and chemicals. It runs facilities and markets its products worldwide, while also engaging in oil and natural gas exploration across six continents. In the first quarter of 2025, Exxon Mobil Corporation (NYSE:XOM) reported revenue of $83.1 billion, up modestly by 0.06% from the same period last year. The revenue missed analysts' estimates by $3 million. However, its EPS of $1.76 exceeded consensus by $0.02. Since 2019, the company has made strategic decisions to cut costs, increase high-value volumes, and optimize its operations, boosting its quarterly earnings by approximately $4 billion based on current prices and margins. This year, the company is launching 10 advantageous projects, which are expected to generate over $3 billion in earnings by 2026, assuming constant prices and margins. Exxon Mobil Corporation (NYSE:XOM) reported operating cash flow of $13.0 billion and free cash flow of $8.8 billion. It distributed $9.1 billion to shareholders, comprising $4.3 billion in dividends and $4.8 billion in share repurchases, in line with its previously announced plans. The company's quarterly dividend is $0.99 per share and offers a dividend yield of 3.73%, as of May 7. It is one of the best dividend aristocrat stocks, having raised its payouts for 41 consecutive years. Overall, XOM ranks 4th on our list of the best undervalued dividend aristocrats to buy now. While we acknowledge the potential of XOM as an investment, our conviction lies in the belief that some deeply undervalued dividend stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued dividend stock that is more promising than XOM but that trades at 10 times its earnings and grows its earnings at double digit rates annually, check out our report about the . READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at . Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
10-05-2025
- Business
- Yahoo
General Dynamics Corporation (GD): An Undervalued Dividend Aristocrat to Buy Now
We recently published a list of the . In this article, we are going to take a look at where General Dynamics Corporation (NYSE:GD) stands against other undervalued dividend aristocrats. Dividend-paying stocks are regaining popularity this year as investors look for ways to soften the blow of current market challenges. The S&P Dividend Aristocrats Index, which tracks the performance of companies with at least 25 consecutive years of dividend growth, has fallen by a little over 1.2% since the start of 2025, compared with a 4.1% decline of the broader market. Analysts point out that dividends not only help boost overall returns early on, but there's also clear evidence that companies with growing dividends tend to deliver stronger performance. These stocks often provide better returns with less risk, stay ahead of inflation, and hold up well whether interest rates are climbing or falling. According to S&P Indices' 'Research Insights,' dividends have accounted for roughly a third of total returns since 1926. This is largely because, unlike stock prices that can fluctuate, dividends represent a guaranteed gain once paid out. Even in strong bull markets like the 1950s, 1980s, and 1990s, dividends played a meaningful role in enhancing investor returns. However, their true value becomes especially clear in weaker market cycles, when capital gains are modest or even negative, dividends have often made up more than half of the total return. In some cases, they've been the deciding factor in keeping returns positive. In essence, dividends tend to matter most when market performance falls short. A report from Fenimore Asset Management reveals that between 1972 and 2016, companies that either raised or initiated dividends consistently outperformed those that did not. Historically, a dividend hike has often been viewed as a sign that management is confident in the company's future. This concept is even the basis of the 'Dividend Discount Model,' which values a company based on expected dividend growth. On average, firms that grew or introduced dividends delivered annualized returns of 9.8%, outpacing businesses that didn't pay dividends. These companies typically enjoy rising sales and earnings, generating more cash than they need for reinvestment, allowing them to reward shareholders regularly. This pattern also reflects a strong commitment by management and the board to return value to investors. In contrast, companies that cut or eliminate dividends often struggle financially. These underperformers posted annualized returns of -0.6% during the said period, and such reductions usually point to a weakening business, limited growth prospects, or a need to redirect cash toward internal needs rather than shareholder payouts. The report also highlighted that one of the key advantages of a growing dividend is its ability to preserve purchasing power over time. As inflation gradually pushes up the cost of living, dividend income needs to grow just to keep up. Assuming a long-term inflation rate of 2%, dividends must increase by at least that much to avoid losing value in real terms. While investors seeking income may be drawn to stocks with high current yields, it's just as important to consider how fast those dividends are growing. Focusing solely on yield without looking at growth can be short-sighted. In the long run, companies that steadily raise their dividends provide income that keeps pace with or even exceeds inflation, offering greater financial security. An aircraft maintenance team in a hanger working on a modern business jet. For this list, we scanned the list of the S&P Dividend Aristocrats– the stocks that have raised their payouts for 25 years or more– and identified stocks with low forward P/E ratios. From there, we picked 11 dividend aristocrats with forward P/E ratios below 20, as of May 7, and ranked them accordingly. At Insider Monkey, we are obsessed with hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). Forward P/E Ratio as of May 7: 18.35 General Dynamics Corporation (NYSE:GD) is a Virginia-based aerospace and defence corporation. The company provides a wide range of products and services across several sectors, including business aviation, shipbuilding and maintenance, land-based combat vehicles, weapons and ammunition, as well as technology solutions and services. The stock has surged by over 3% since the start of 2025. In the first quarter of 2025, General Dynamics Corporation (NYSE:GD) reported revenue of $12.22 billion, up nearly 14% from the same period last year. The revenue also surpassed analysts' estimates by $279.2 million. The EPS of $3.66 also beat consensus by $0.18. All four segments reported year-over-year growth in both revenue and operating earnings, with particularly strong performance in the Aerospace segment. Aerospace revenue rose by 45.2%, operating earnings jumped 69.4%, and profit margins improved by 210 basis points, reaching 14.3%. General Dynamics Corporation (NYSE:GD) also demonstrated a solid cash position in the most recent quarter. The company ended the quarter with $1.2 billion available in cash and cash equivalents. Moreover, it returned $383 million to shareholders through dividends. The company offers a quarterly dividend of $1.50 per share, having raised it by 5.6% in March. This was the company's 28th consecutive year of dividend growth, which makes GD one of the best dividend aristocrat stocks. The stock has a dividend yield of 2.23%, as of May 7. Overall, GD ranks 10th on our list of the best undervalued dividend aristocrats to buy now. While we acknowledge the potential of GD as an investment, our conviction lies in the belief that some deeply undervalued dividend stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued dividend stock that is more promising than GD but that trades at 10 times its earnings and grows its earnings at double digit rates annually, check out our report about the . READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at .
Yahoo
10-05-2025
- Business
- Yahoo
Dover Corporation (DOV): An Undervalued Dividend Aristocrat to Buy Now
We recently published a list of the . In this article, we are going to take a look at where Dover Corporation (NYSE:DOV) stands against other undervalued dividend aristocrats. Dividend-paying stocks are regaining popularity this year as investors look for ways to soften the blow of current market challenges. The S&P Dividend Aristocrats Index, which tracks the performance of companies with at least 25 consecutive years of dividend growth, has fallen by a little over 1.2% since the start of 2025, compared with a 4.1% decline of the broader market. Analysts point out that dividends not only help boost overall returns early on, but there's also clear evidence that companies with growing dividends tend to deliver stronger performance. These stocks often provide better returns with less risk, stay ahead of inflation, and hold up well whether interest rates are climbing or falling. According to S&P Indices' 'Research Insights,' dividends have accounted for roughly a third of total returns since 1926. This is largely because, unlike stock prices that can fluctuate, dividends represent a guaranteed gain once paid out. Even in strong bull markets like the 1950s, 1980s, and 1990s, dividends played a meaningful role in enhancing investor returns. However, their true value becomes especially clear in weaker market cycles, when capital gains are modest or even negative, dividends have often made up more than half of the total return. In some cases, they've been the deciding factor in keeping returns positive. In essence, dividends tend to matter most when market performance falls short. A report from Fenimore Asset Management reveals that between 1972 and 2016, companies that either raised or initiated dividends consistently outperformed those that did not. Historically, a dividend hike has often been viewed as a sign that management is confident in the company's future. This concept is even the basis of the 'Dividend Discount Model,' which values a company based on expected dividend growth. On average, firms that grew or introduced dividends delivered annualized returns of 9.8%, outpacing businesses that didn't pay dividends. These companies typically enjoy rising sales and earnings, generating more cash than they need for reinvestment, allowing them to reward shareholders regularly. This pattern also reflects a strong commitment by management and the board to return value to investors. In contrast, companies that cut or eliminate dividends often struggle financially. These underperformers posted annualized returns of -0.6% during the said period, and such reductions usually point to a weakening business, limited growth prospects, or a need to redirect cash toward internal needs rather than shareholder payouts. The report also highlighted that one of the key advantages of a growing dividend is its ability to preserve purchasing power over time. As inflation gradually pushes up the cost of living, dividend income needs to grow just to keep up. Assuming a long-term inflation rate of 2%, dividends must increase by at least that much to avoid losing value in real terms. While investors seeking income may be drawn to stocks with high current yields, it's just as important to consider how fast those dividends are growing. Focusing solely on yield without looking at growth can be short-sighted. In the long run, companies that steadily raise their dividends provide income that keeps pace with or even exceeds inflation, offering greater financial security. A modern industrial equipment assembly line in motion. For this list, we scanned the list of the S&P Dividend Aristocrats– the stocks that have raised their payouts for 25 years or more– and identified stocks with low forward P/E ratios. From there, we picked 11 dividend aristocrats with forward P/E ratios below 20, as of May 7, and ranked them accordingly. At Insider Monkey, we are obsessed with hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). Forward P/E Ratio as of May 7: 18.52 Dover Corporation (NYSE:DOV) is an American manufacturing company that produces a wide array of industrial equipment and components. The company provides cutting-edge equipment and components, consumable supplies, aftermarket parts, software, digital solutions, and support services across five key segments: Engineered Products, Clean Energy & Fueling, Imaging & Identification, Pumps & Process Solutions, and Climate & Sustainability Technologies. In the first quarter of 2025, Dover Corporation (NYSE:DOV) reported revenue of $1.9 billion, down 1% from the same period last year. The company's adjusted earnings from continuing operations came in at $$283 million, up 18% from the prior-year period. During the quarter, the company experienced strong and widespread demand and order activity, with notable momentum in markets tied to long-term growth trends such as single-use biopharma components, thermal connectors, and CO2 systems. A significant portion of revenue for the second quarter has already been secured in the backlog. The company also delivered outstanding margin performance, supported by a favorable mix from its high-margin, fast-growing platforms, along with effective cost control and productivity initiatives. Dover Corporation (NYSE:DOV)'s cash position remained strong. The company generated $157.4 million in operating cash flow, and its free cash flow came in at over $109 million. On May 2, the company declared a quarterly dividend of $0.515 per share, which was in line with its previous dividend. Overall, it has been growing its dividends for the past 68 years, which makes it one of the best dividend aristocrat stocks on our list. The stock has a dividend yield of 1.2%, as of May 7. Overall, DOV ranks 11th on our list of the best undervalued dividend aristocrats to buy now. While we acknowledge the potential of DOV as an investment, our conviction lies in the belief that some deeply undervalued dividend stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued dividend stock that is more promising than DOV but that trades at 10 times its earnings and grows its earnings at double digit rates annually, check out our report about the . READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at . Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
