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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
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
Yahoo
09-05-2025
- Business
- Yahoo
Archer-Daniels-Midland Company (ADM): 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 Archer-Daniels-Midland Company (NYSE:ADM) 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 wheat field at sunset, showing the company's commitment to agricultural commodities. 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: 11.21 Archer-Daniels-Midland Company (NYSE:ADM) is an American company that is involved in food processing and commodity trading. The company is carrying out a strategic initiative to enhance profitability and aims to generate $200–$300 million in cost savings over the coming years by streamlining operations and reducing its workforce. These efforts are intended to improve margins and reinforce financial stability in the face of ongoing economic challenges. In addition, ADM is leveraging technologies such as AI, data analytics, and SAP S/4HANA to boost supply chain efficiency, enhance demand forecasting, and sharpen pricing strategies—moves that are expected to support its competitive edge. Archer-Daniels-Midland Company (NYSE:ADM) reported mixed earnings in the first quarter of 2025. The company posted revenue of $20.1 billion, which not only fell by 7.6% on a YoY basis but also missed analysts' estimates by $1.8 billion. However, the EPS of $0.70 beat consensus by $0.03. Total segment operating profit amounted to $747 million, reflecting a 38% decline compared to the same quarter last year. This figure excludes $49 million in specified items, which were mainly related to restructuring expenses. Archer-Daniels-Midland Company (NYSE:ADM) ended the quarter with $864 million available in cash and cash equivalents. On May 7, the company declared a quarterly dividend of $0.51 per share, which fell in line with its previous dividend. Overall, it holds a 52-year streak of dividend growth, which makes ADM one of the best dividend aristocrat stocks to consider. The stock supports a dividend yield of 4.28%, as of May 7. Overall, ADM ranks 2nd on our list of the best undervalued dividend aristocrats to buy now. While we acknowledge the potential of ADM 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 ADM 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
26-04-2025
- Business
- Yahoo
WD-40 Company (WDFC): One of the Overlooked Dividend Stocks to Buy Now
We recently published a list of the 10 Overlooked Dividend Stocks to Buy Now. In this article, we are going to take a look at where WD-40 Company (NASDAQ:WDFC) stands against other overlooked dividend stocks. In recent times, dividend investing—also known as equity income—has fallen out of favor. Once a widely followed and dependable strategy, it has gradually been overshadowed. The strong capital gains delivered by growth stocks appear to have shifted investors' attention away from the more stable and consistent returns that come with dividend-paying stocks. However, the recent market downturn, combined with the economic impact of Trump's trade policies, has brought renewed attention and appeal to these types of stocks. 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 2% since the start of 2025, compared with a 6% fall in the broader market. Dividend stocks have seen mixed results over different economic cycles—performing well in some downturns and falling behind in others. They generally outpaced the broader market during the recessions starting in July 1981, March 2001, and December 2007. However, their performance lagged during the shorter recessions in 1980 and 2020. This was mainly due to dividend cuts from major firms, along with limited exposure to fast-growing tech names. For context, the steepest drop in dividends came during the 2008–09 financial crisis, when S&P dividend payouts declined by 24%, though investors still received 76% of their income. That said, while the possibility of dividend reductions is a valid concern and a potential drawback of this strategy, it shouldn't be a reason to overlook dividend stocks altogether. When incorporated thoughtfully, they can still play a valuable role in a well-rounded investment portfolio. M&G Investments noted that dividends serve as more than just income—they also signal a company's financial health and management's confidence. While short-term market returns often hinge on stock valuations, dividends play a much more substantial role in driving equity returns over longer periods, such as 10 or 20 years. The report also mentioned, citing Bloomberg's data, that dividends play a vital role in long-term returns. Over the last 25 years, nearly half of the total gains from US stocks have come from reinvested dividends and the power of compounding. During this period, the broader market delivered an average annual return of 7.4%, with 55% attributed to rising stock prices and the remaining 45% coming from reinvested dividend income. The fact that dividends are not guaranteed highlights a deeper financial story behind corporate decisions. Companies must carefully weigh the trade-off between returning profits to shareholders and keeping enough earnings on hand to support future expansion. Getting this balance right is a strategic task. A particularly high dividend payout ratio—typically above 75%, though this varies by sector—can raise red flags about sustainability. When too much profit is paid out, there's little room left to increase dividends down the line. This could eventually lead a company to scale back or even stop its dividend payments altogether, which may hold back both business growth and long-term gains in share value. Given this, we will take a look at some overlooked stocks that pay dividends. A colour palette showcasing the range of aerosol and trigger sprays in an organised display. For this list, we thoroughly reviewed reputable sources such as Forbes, Morningstar, Barron's, and Business Insider and searched for stocks that remain under the radar but have strong balance sheets and sound financials. In addition, these lesser-known dividend companies also boast dividend growth track records, which make them a reliable option for income investors. After compiling our data, we picked 10 companies with the highest number of hedge fund investors, as per Insider Monkey's Q4 2024 database. 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 (). Number of Hedge Fund Holders: 26 WD-40 Company (NASDAQ:WDFC) is an American company that specializes in household and multi-use products. The company holds a diverse portfolio of recognized brands in maintenance, homecare, and cleaning products, with its offerings now sold in over 176 countries and territories around the globe. WD-40 Company (NASDAQ:WDFC) reported mixed earnings in fiscal Q2 2025. It posted revenue of over $146 million, which grew by 5% from the same period last year. However, the revenue missed analysts' estimates by $8.3 million. Total sales from maintenance products reached $139.3 million, reflecting a 6% increase from the same fiscal quarter a year earlier. Gross margin improved to 54.6%, up from 52.4% in the prior year period. Meanwhile, selling, general, and administrative expenses rose to $49.0 million, marking a 9% increase compared to the previous year's fiscal quarter. WD-40 Company (NASDAQ:WDFC) ended the quarter with $53 million available in cash and cash equivalents. Year-to-date, its operating cash flow came in at $23 million. The company currently offers a quarterly dividend of $0.94 per share and has a dividend yield of 1.68%, as of April 25. It is one of the best overlooked stocks that pay dividends, as the company has been growing its payouts for the past 17 consecutive years. Overall, WDFC ranks 8th on our list of the best overlooked dividend stocks to invest in. While we acknowledge the potential of WDFC 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 WDFC 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 .
