Revealed on April seventh, 2026 by Bob Ciura
The S&P 500 has been traditionally overvalued (in hindsight) continuous since 2010 utilizing the Shiller P/E ratio.
The Shiller P/E ratio makes use of a mean of 10 years of earnings for the “E” (earnings) within the P/E ratio to easy out outcomes and make the metric related when earnings short-term flip unfavourable, throughout recessions.
The historic common Shiller P/E ratio is 17.3. It’s presently at 38.1.
Due to this fact, the S&P 500 is 120% overvalued in line with the Shiller P/E ratio.
When the market is overvalued, buyers ought to look to high quality dividend progress shares, significantly these which are undervalued.
For instance, the free excessive dividend shares listing spreadsheet beneath has our full listing of particular person securities (shares, REITs, MLPs, and many others.) with with 5%+ dividend yields.
Luckily, there are nonetheless loads of sturdy dividend shares which are moderately valued.
The next article will rank 10 dividend shares based mostly within the U.S., which are presently buying and selling at or beneath the long-term common Shiller P/E of 17.3.
As well as, they’ve Dividend Threat Scores of ‘A’ or ‘B’ within the Certain Evaluation Analysis Database, and dividend yields above 2%.
The listing is sorted by annual anticipated returns over the subsequent 5 years, from lowest to highest.
Desk of Contents
Discount Dividend Inventory #10: Hormel Meals (HRL)
- Annual Anticipated Returns: 15.9%
Hormel Meals was based in 1891 in Minnesota. Since that point, the corporate has grown right into a juggernaut within the meals merchandise trade with about $12.3 billion in annual income.
The corporate sells its merchandise in 80 nations worldwide, and its manufacturers embrace Skippy, SPAM, Applegate, Justin’s, and greater than 30 others.
Hormel posted first quarter earnings on February twenty sixth, 2026, and outcomes have been blended. The corporate posted barely increased income at +1.3% year-over-year, totaling $3.03 billion. That missed expectations by $30 million.
Adjusted earnings-per-share got here to 34 cents, which was two cents higher than estimates.
Administration famous gross revenue was weak sufficient to offset prime line progress as increased enter prices and logistics bills have been worse than anticipated.
Adjusted SG&A was similar to the year-ago interval as a share of income, as increased worker and authorized bills have been offset by reductions in advertising and promoting.
Adjusted working earnings was $247 million, whereas adjusted working margin was 8.2% of income for the quarter. Money move from operations was $349 million, rising about $26 million year-over-year.
Click on right here to obtain our most up-to-date Certain Evaluation report on HRL (preview of web page 1 of three proven beneath):
Discount Dividend Inventory #9: Masco Company (MAS)
- Annual Anticipated Returns: 16.1%
Masco Company is a world chief within the design, manufacture, and distribution of all kinds of residence enchancment and constructing merchandise.
The corporate’s main manufacturers embrace Behr paint, Hotspring spas, Kichler ornamental and outside lighting, and Delta taps, bathtub, and bathe fixtures.
Masco additionally sells branded ornamental and practical {hardware} and waterproofing merchandise. The corporate has two reportable segments, together with Plumbing Merchandise and Ornamental Architectural Merchandise.
On February tenth, 2026, Masco raised its quarterly dividend 3.2% to $0.32. That very same day, Masco introduced fourth quarter and full yr earnings outcomes.
For the quarter, income declined 2.2% to $1.79 billion and missed estimates by $25 million. Adjusted earnings-per-share of $0.82 in contrast unfavorably to $0.89 within the prior yr, however this was $0.03 greater than anticipated.
For the yr, income grew 3% to $7.56 billion whereas adjusted earnings-per-share of $3.96 have been down from $4.10 in 2024.
For the quarter, income for the Plumbing Merchandise phase grew 5% to $1.25 billion whereas Ornamental Architectural Merchandise decreased 15% to $545 million. By areas, North America declined 5% whereas worldwide have been up 1%.
Gross margin contracted 80 foundation factors to 33.9% whereas the working margin fell 210 foundation factors to 13.8%.
The corporate returned $832 million to shareholders by dividends and inventory buybacks through the yr in addition to introduced a brand new $2.0 billion share repurchase authorization.
Masco offered steerage for the yr as nicely, with the corporate excepting adjusted EPS in a variety of $4.10 to $4.30 for 2026.
Click on right here to obtain our most up-to-date Certain Evaluation report on MAS (preview of web page 1 of three proven beneath):
Discount Dividend Inventory #8: Becton, Dickinson & Co. (BDX)
- Annual Anticipated Returns: 16.1%
Becton, Dickinson & Co. is a world chief within the medical provide trade. The corporate was based in 1897 and has 75,000 staff throughout 190 nations.
The corporate generates about $20 billion in annual income, with roughly 43% of revenues coming from exterior of the U.S.
On November sixth, 2025, BD elevated its quarterly dividend 1.0% to $1.05, extending the corporate’s dividend progress streak to 54 consecutive years.
BD additionally introduced outcomes for the primary quarter of fiscal yr 2026, which ended December thirty first, 2026. For the quarter, income improved 1.5% to $5.25 billion, which topped estimates by $100 million.
Adjusted earnings-per-share of $2.91 in contrast unfavorably to $3.43 within the prior yr, however this was $0.10 greater than anticipated.
For the quarter, Medical Necessities was down 0.6% on a forex impartial foundation to $1.6 billion as good points in U.S. Vascular Entry Administration and the BD Vacutainer portfolio have been greater than offset by order timing in China.
Related Care grew 4.7% to $1.13 billion as a result of progress in Pharmacy Automation and power in Superior Affected person Monitoring.
BioPharma was up 1% to $429 million as a result of double-digit progress in Biologics. Interventional climbed 5.1% to $1.33 billion, largely as a result of increased demand for the PureWick franchise and Superior Tissue Regeneration.
Click on right here to obtain our most up-to-date Certain Evaluation report on BDX (preview of web page 1 of three proven beneath):
Discount Dividend Inventory #7: Cigna Group (CI)
- Annual Anticipated Returns: 16.2%
Cigna is a number one supplier of insurance coverage services and products. The corporate’s merchandise embrace dental, medical, incapacity and life insurance coverage that it gives by employer-sponsored, government-sponsored, and particular person protection plans.
Cigna operates 4 enterprise segments, together with Evernorth, which gives pharmacy companies and profit administration, U.S. Medical, which gives industrial and authorities medical health insurance, Worldwide Markets and Group Incapacity.
Evernorth contributes ~87% of annual revenues whereas Cigna Healthcare accounts for a lot of the remaining. Cigna has annual revenues of ~$275 billion.
On February fifth, 2026, Cigna elevated its quarterly dividend by 3.3% to $1.56. That very same day, Cigna reported fourth quarter and full yr outcomes for the interval ending December thirty first, 2025.
For the quarter, income grew 10.4% to $72.5 billion, which was $3.41 billion higher than anticipated. Adjusted earnings-per-share of $8.08 in contrast favorably to adjusted earnings-per-share of $6.64 within the prior yr and was $0.20 forward of estimates.
For the yr, income elevated 11.2% to $274.9 billion whereas adjusted earnings-per-share of $29.84 was up from $27.33 in 2024.
Whole buyer relationships elevated 3% to 188.4 million from the identical interval a yr in the past. Whole pharmacy clients grew 4% to 123.6 million whereas whole medical clients decreased 5% to 18.1 million.
Click on right here to obtain our most up-to-date Certain Evaluation report on CI (preview of web page 1 of three proven beneath):
Discount Dividend Inventory #6: PPG Industries (PPG)
- Annual Anticipated Returns: 16.9%
PPG Industries is the world’s largest paints and coatings firm. Its solely opponents of comparable dimension are Sherwin-Williams and Dutch paint firm Akzo Nobel.
On January twenty seventh, 2026, PPG Industries introduced fourth quarter and full yr outcomes. For the quarter, income grew 4.8% to $3.91 billion, which topped estimates by $140 million.
Adjusted earnings-per-share of $1.51 in contrast unfavorably to $1.61 within the prior yr and was $0.07 lower than anticipated.
For the yr, income grew 0.6% to $15.9 billion whereas adjusted earnings-per-share of $7.58 was down from $7.87 in 2024. Natural progress was 3% for the quarter and a pair of% for the yr.
For the quarter, income for International Architectural Coatings, which was previously a part of Efficiency Coatings, grew 8% to $951 million.
Progress was pushed by increased costs and a profit from overseas forex translation. Quantity was unchanged and divestitures diminished outcomes by 3%.
As soon as once more, Latin America and Asia Pacific carried out nicely through the interval as natural progress improved by a excessive single-digit determine.
Efficiency Coatings grew 5% to $1.32 billion as increased costs and favorable forex trade was solely partially offset by a 1% decline in quantity.
PPG Industries repurchased ~$100 million value of shares throughout This fall and retired ~$790 million value of inventory throughout 2025.
Click on right here to obtain our most up-to-date Certain Evaluation report on PPG (preview of web page 1 of three proven beneath):
Discount Dividend Inventory #5: UnitedHealth Group (UNH)
- Annual Anticipated Returns: 17.8%
UnitedHealth gives world healthcare companies to tens of hundreds of thousands of individuals by way of a wide selection of merchandise. The corporate has two main reporting segments: UnitedHealth and Optum.
It gives world healthcare advantages to people, employers, and Medicare/Medicaid beneficiaries. The Optum phase is a companies enterprise that seeks to decrease healthcare prices and optimize outcomes for its clients.
UnitedHealth posted fourth quarter and full-year earnings on January twenty seventh, 2026. Adjusted earnings-per-share got here to $2.11, which met expectations. Income was up greater than 12% year-over-year to $113.22 billion, however that missed expectations by $520 million.
The UnitedHealthcare insurance coverage phase noticed $87.1 billion to the highest line, which was about $400 million forward of estimates.
The phase’s medical care ratio was 92.4%, a lot worse than the 89.1% from a yr in the past. UnitedHealthcare supported 49.8 million clients through the quarter.
The Optum division noticed $70.3 billion in income, which was pushed by pharmacy-benefits division. Optum supported 123 million clients through the quarter. The corporate’s working value ratio was 12.9% on an adjusted foundation, flat year-over-year.
The corporate guided for not less than $17.75 in adjusted earnings-per-share for 2026, however guided for income that was about $17 billion gentle of consensus.
Click on right here to obtain our most up-to-date Certain Evaluation report on UNH (preview of web page 1 of three proven beneath):
Discount Dividend Inventory #4: CDW Company (CDW)
- Annual Anticipated Returns: 17.9%
CDW Company is a number one supplier of expertise options for enterprise, authorities, schooling, and healthcare sectors.
CDW gives a broad portfolio of services and products, together with {hardware}, software program, networking, cloud computing, and IT consulting.
The corporate serves a variety of consumers, from small companies to massive enterprises, by serving to them implement and handle IT infrastructure.
CDW Company reported its fourth-quarter earnings on February 4th, 2026. The corporate reported stable This fall 2025 outcomes with income of $5.51B (+6.3% YoY) and EPS of $2.57 (+3.8% YoY, beat by $0.13).
Progress was pushed by sturdy demand in software program, gadgets, and companies, with standout segments together with Small Enterprise (+18.4%) and Public (+7.0%).
Money move remained sturdy with $1.09B in free money move, and the corporate returned ~$982M to shareholders by way of dividends and buybacks.
Stability sheet metrics improved barely, with web debt at $5.01B (down from $5.13B) and liquidity at $2.54B. CDW additionally raised its quarterly dividend to $0.63/share.
Click on right here to obtain our most up-to-date Certain Evaluation report on CDW (preview of web page 1 of three proven beneath):
Discount Dividend Inventory #3: Qualcomm Inc. (QCOM)
- Annual Anticipated Returns: 18.2%
Qualcomm develops and sells built-in circuits to be used in voice and knowledge communications.
The chip maker receives royalty funds for its patents utilized in gadgets which are on 3G, 4G, and 5G networks. Qualcomm has annual gross sales of ~$44 billion.
On April ninth, 2025, Qualcomm elevated its quarterly dividend 4.7% to $0.89, marking the corporate’s twenty third consecutive yr of dividend progress.
On February 4th, 2026, Qualcomm launched outcomes for the primary quarter of fiscal yr 2026 for the interval ending December twenty eighth, 2025. For the quarter, income elevated 5.4% to $12.3 billion, which was $140 million forward of
expectations.
Adjusted earnings-per-share of $3.50 in contrast favorably to $3.41 within the earlier yr and was $0.10 above estimates.
For the quarter, income for Qualcomm CDMA Applied sciences, or QCT, grew 5% to $10.6 billion. Handset gross sales elevated 3% to $7.82 billion, Web of Issues was up 9% to $1.69 billion, and Automotive grew 15% to $1.1 billion. Qualcomm Expertise Licensing, or QTL, improved 4% to $1.54 billion.
Qualcomm repurchased 15 million shares through the quarter at a mean worth of ~$153. For the fiscal yr, The corporate repurchased 56 million shares at a mean worth of ~$173.
The corporate’s steerage for Q2 2026 requires income in a variety of $10.2 billion to $11.0 billion and adjusted earnings-per-share in a variety of $2.45 to $2.65.
Click on right here to obtain our most up-to-date Certain Evaluation report on QCOM (preview of web page 1 of three proven beneath):
Discount Dividend Inventory #2: Broadridge Monetary Options (BR)
- Annual Anticipated Returns: 18.3%
Broadridge Monetary Options gives investor communications companies and technology-related options to the monetary companies trade.
Broadridge processes hundreds of thousands of trades a day involving trillions of {dollars}, gives investor communications which attain 75% of North American households, and likewise handle shareholder voting in ~120 nations. The corporate generates about $5 billion in annual income.
On August fifth, 2025, Broadridge elevated its dividend by 11% to $3.90 per share yearly, marking 19 years of consecutive will increase.
On January fifth, 2026, Broadridge accomplished the acquisition of Acolin Group Holdco Restricted, a number one European supplier of cross-border fund distribution and regulatory companies, for $70 million.
Broadridge Monetary Options reported second quarter 2026 outcomes on February third, 2026. Whole income for the quarter improved 8% to $1,714 million.
Recurring income grew 9% year-over-year to $1,070 million from $980 million and made up 62% of whole income within the second quarter.
Adjusted EPS edged up 2% YoY to $1.59 per share. Management reiterated its FY 2026 steerage for five% to 7% recurring income progress, and raised it estimate for adjusted EPS progress to 9% to 12%.
Click on right here to obtain our most up-to-date Certain Evaluation report on BR (preview of web page 1 of three proven beneath):
Discount Dividend Inventory #1: McCormick & Co. (MKC)
- Annual Anticipated Returns: 18.7%
McCormick & Firm produces, markets, and distributes seasoning mixes, spices, condiments and different merchandise to clients within the meals trade. It controls ~20% of the worldwide seasoning and spice market.
On November 18th, 2025, McCormick introduced that it was rising its quarterly dividend 6.7% to $0.48, extending the corporate’s dividend progress streak to 40 consecutive years.
On January twenty second, 2026, McCormick reported fourth quarter and full yr outcomes for the interval ending November thirtieth, 2025. For the quarter, income improved 2.8% to $1.85 billion, which matched estimates.
Adjusted earnings-per-share of $0.86 in comparison with $0.80 within the prior yr, however this was $0.02 beneath expectations.
For the yr, income grew 2% to $6.8 billion whereas adjusted earnings-per-share of $2.93 was up barely up from $2.92 in 2024.
For the quarter, natural progress was 2.1% as quantity was up 0.2% and worth added 1.9%. The Shopper phase grew 3.1% for the interval as quantity and blend improved 1.0% whereas increased costs added 2.1%.
Natural progress for the Americas, EMEA, and Asia/Pacific grew 3.2%, 3.1%, and 1.8%, respectively. Taste Options elevated 0.7% from the prior yr as a 1.6% contribution from pricing was partially offset by a 0.9% lower in quantity.
Asia/Pacific was up 2.5%, the Americas grew 1.5%, and EMEA was decrease by 3.1%. The corporate acknowledged that commerce tensions and inflation could be headwinds going ahead.
McCormick offered steerage for 2026 as nicely. The corporate expects adjusted earnings-per-share in a variety of $3.05 to $3.13 for the yr.
Click on right here to obtain our most up-to-date Certain Evaluation report on MKC (preview of web page 1 of three proven beneath):
Further Studying
If you’re thinking about discovering high-quality dividend progress shares and/or different high-yield securities and earnings securities, the next Certain Dividend assets will probably be helpful:
Excessive-Yield Particular person Safety Analysis
Different Certain Dividend Sources
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