Hartford Funds researchers, in collaboration with Ned Davis Analysis, discovered that dividend shares averaged an annualized return of 9.2% between 1973 and 2024, and did so whereas being much less risky than the benchmark index.
By comparability, non-dividend shares earned a extra modest annualized return of 4.31% over 51 years and have been extra risky than the .
With that in thoughts, we got down to discover three attention-grabbing shares that pay a major dividend, commerce at low valuations, and are often supported by the broader market.
Right here they’re:
1. Enterprise Merchandise Companions
Enterprise Merchandise Companions LP (NYSE:) is an organization primarily engaged within the transportation, storage, and processing of power merchandise reminiscent of , , and petrochemicals. It was based in 1968 and is headquartered in Houston, Texas.
It has elevated its dividend in every of the final 27 years, and the yield at present stands at 7%.
Supply: InvestingPro
Within the , it beat earnings per share (EPS) expectations with $0.66 per share versus a forecast of $0.65 — a constructive shock of 1.54%. Nevertheless, income got here in considerably beneath projections at $11.36 billion in comparison with the anticipated $14.49 billion, down 21.6%. It’s going to current its accounts for the quarter on November 4.
Supply: InvestingPro
Being an power middleman has one benefit: money circulate predictability. A lot of the contracts Enterprise has signed with drilling corporations are mounted in nature. This eliminates all points of inflation and value volatility, permitting Enterprise to precisely forecast its money circulate from operations a number of years upfront.
It has greater than half a dozen main initiatives underneath development, totaling $5.6 billion. These initiatives — primarily centered on increasing its publicity to liquefied pure fuel — must be operational by the top of 2026 and are anticipated to spice up the corporate’s money circulate.
The ahead price-to-earnings (P/E) ratio is 10.5, roughly in step with its common ahead P/E over the previous 5 years.
Its shares are buying and selling 9.6% beneath their truthful worth, or worth based on fundamentals, which might be $34.13. The market consensus provides it a value goal of $36.
Supply: InvestingPro
2. Stanley Black & Decker
Stanley Black & Decker (NYSE:) is a producer and distributor of merchandise for do-it-yourself and gardening, in addition to for business purposes. In 1843, Stanley Works was born, and in 1910, Black & Decker was based. In 2010, Stanley Works merged with Black & Decker. It’s headquartered in New Britain, Connecticut.
It’s going to pay a dividend of $0.83 on September 16, and shares have to be held previous to September 2 to obtain it. The corporate’s dividend yield is 4.79%.
Supply: InvestingPro
In second-quarter , gross sales declined 2% year-on-year to $3.95 billion. Its internet revenue rose sharply to $101.9 million. We are going to be taught the following quarter’s outcomes on October 23. For the complete computation of 2025, EPS (earnings per share) is anticipated to extend by 5.7%, and by 2026, by 28.2%.
Supply: InvestingPro
The corporate stays centered on its provide chain transformation and cost-saving initiatives. Actually, the worldwide price discount program initiated in 2022 has already generated round $1.8 billion in financial savings. As well as, it’s relocating manufacturing out of China to mitigate the tariff impression, shifting to Asia.
There’s operational enchancment with increasing margins and correct execution of the effectivity plan, in addition to potential if the development and manufacturing sector within the U.S. reactivates.
Its shares are buying and selling 22.5% beneath their worth primarily based on fundamentals, which might be $84.96. The market consensus provides it a median value goal of $86.48.
Supply: InvestingPro
3. MetLife
MetLife (NYSE:) affords an attention-grabbing case research amongst massive insurance coverage corporations, combining traits of each worth and progress. Its ahead price-to-earnings ratio of 8.6x is considerably beneath its historic common and the broader sector, suggesting the inventory could also be undervalued.
Supply: InvestingPro
Nevertheless, this low a number of shouldn’t be attributable to deteriorating fundamentals. Analysts anticipate robust earnings progress of practically 50% in 2025, together with a projected 5.9% improve in income—uncommon for a mature insurer. The inventory additionally holds a “Sturdy Purchase” consensus from analysts, primarily based on earnings outlook and operational enhancements.
Supply: InvestingPro
When it comes to revenue, MetLife has an extended historical past of shareholder returns. The corporate has raised its dividend for 12 consecutive years and maintained uninterrupted payouts for 26 years. Whereas the present dividend yield is 2.7%, that is supported by a conservative payout ratio, which permits for potential will increase sooner or later. Moreover, MetLife repurchased $510 million value of shares within the second quarter of 2025, contributing to a excessive complete shareholder yield.
****
Be sure you try all of the market-beating options InvestingPro affords.
InvestingPro members can unlock a strong suite of instruments designed to help smarter, quicker investing choices, like the next:
ProPicks AI
Constructed on 25+ years of monetary knowledge, ProPicks AI makes use of a machine-learning mannequin to identify high-potential shares utilizing each industry-recognized metric recognized to the massive funds {and professional} traders. Up to date month-to-month, every decide features a clear rationale.
Honest Worth Rating
The InvestingPro Honest Worth mannequin provides you a transparent, data-backed reply. By combining insights from as much as 15 industry-recognized valuation fashions, it delivers a professional-grade estimate of what any inventory is actually value.
WarrenAI
WarrenAI is our generative AI skilled particularly for the monetary markets. As a Professional person, you get 500 prompts every month. Free customers get 10 prompts.
Monetary Well being Rating
The Monetary Well being Rating is a single, data-driven quantity that displays an organization’s general monetary power.
Market’s Prime Inventory Screener
The superior inventory screener options 167 custom-made metrics to seek out exactly what you’re in search of, plus pre-defined screens like Dividend Champions and Blue-Chip Bargains.
Every of those instruments is designed to avoid wasting you time and enhance your investing edge.
Not a Professional member but? Take a look at our plans right here or by clicking on the banner beneath. InvestingPro is at present obtainable at as much as 50% off amid the limited-time summer season sale.
Disclaimer: This text is written for informational functions solely. It’s not meant to encourage the acquisition of property in any manner, nor does it represent a solicitation, supply, suggestion or suggestion to take a position. I want to remind you that each one property are evaluated from a number of views and are extremely dangerous, so any funding determination and the related threat belongs to the investor. We additionally don’t present any funding advisory providers.
