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10 Undervalued Companies For Income Investors

There are a number of great companies in the market today. I've selected the highest dividend yields among the undervalued companies for defensive dividend stock investors.

The companies selected for this list may not pay what some consider to be a huge dividend, but they have demonstrated strong financial positions through passing the rigorous requirements and show potential for capital growth based on their current price in relation to intrinsic value.


As such, these defensive dividend stocks may be a great investment if they prove to be suitable for your portfolio after your own additional research.


Dividend paying stocks have been a better investment than non-dividend paying stocks over the past 40 years. Investing in dividend stocks is not the only strategy that has a long history of outperformance. Value investing has also significantly outperformed the market over long periods.


Stocks with the lowest 10% of price-to-book ratios have outperformed stocks with the highest 10% of price-to-book ratios substantially from 1926 through 2013 (an 87-year study). 

Combining dividend paying stocks with value investing will likely generate strong returns going forward. This article highlights 10 dividend paying stocks that appear to be undervalued at this time. Many of these stocks are facing headwinds at this time; this is why they are likely undervalued. 


Here are the results...



CMI Corporation -- Yield: 4.45%

CMI Corporation (NYSE:CMI) employs 54,600 people, generates revenue of $19,221.00 million and has a net income of $1,736.00 million. The current market capitalization stands at $15.56 billion.

CMI Corporation’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,393.00 million. The EBITDA margin is 12.45% (the operating margin is 12.30% and the net profit margin 9.03%).

Financials: The total debt represents 10.76% of CMI Corporation assets and the total debt in relation to the equity amounts to 21.91%. Due to the financial situation, a return on equity of 21.64% was realized by CMI Corporation.

Twelve trailing months earnings per share reached a value of $9.34. Last fiscal year, CMI Corporation paid $2.81 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 9.37, the P/S ratio is 0.81 and the P/B ratio is finally 2.06. The dividend yield amounts to 4.45%.

Stock Charts:


Long-Term Stock Price Chart of CMI Corporation (CMI)
Long-Term Stock Price Chart of CMI Corporation (CMI)
Long-Term Dividend Payment History of CMI Corporation (CMI)
Long-Term Dividend Payment History of CMI Corporation (CMI)
Long-Term Dividend Yield History of CMI Corporation (CMI)
Long-Term Dividend Yield History of CMI Corporation (CMI)



QUALCOMM -- Yield: 4.05%

QUALCOMM (NASDAQ:QCOM) employs 33,000 people, generates revenue of $25,281.00 million and has a net income of $5,268.00 million. The current market capitalization stands at $71.34 billion.

QUALCOMM’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $7,350.00 million. The EBITDA margin is 29.07% (the operating margin is 22.12% and the net profit margin 20.84%).

Financials: The total debt represents 21.59% of QUALCOMM assets and the total debt in relation to the equity amounts to 34.91%. Due to the financial situation, a return on equity of 14.93% was realized by QUALCOMM.

Twelve trailing months earnings per share reached a value of $3.20. Last fiscal year, QUALCOMM paid $1.80 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 14.82, the P/S ratio is 2.82 and the P/B ratio is finally 2.30. The dividend yield amounts to 4.05%.

Stock Charts:


Long-Term Stock Price Chart of QUALCOMM (QCOM)
Long-Term Stock Price Chart of QUALCOMM (QCOM)
Long-Term Dividend Payment History of QUALCOMM (QCOM)
Long-Term Dividend Payment History of QUALCOMM (QCOM)
Long-Term Dividend Yield History of QUALCOMM (QCOM)
Long-Term Dividend Yield History of QUALCOMM (QCOM)



CA -- Yield: 3.68%

CA (NASDAQ:CA) employs 11,600 people, generates revenue of $4,262.00 million and has a net income of $810.00 million. The current market capitalization stands at $11.91 billion.

CA’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,582.00 million. The EBITDA margin is 37.12% (the operating margin is 27.26% and the net profit margin 19.01%).

Financials: The total debt represents 11.50% of CA assets and the total debt in relation to the equity amounts to 22.45%. Due to the financial situation, a return on equity of 14.33% was realized by CA.

Twelve trailing months earnings per share reached a value of $1.68. Last fiscal year, CA paid $1.00 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 16.20, the P/S ratio is 2.79 and the P/B ratio is finally 2.10. The dividend yield amounts to 3.68%.

Stock Charts:


Long-Term Stock Price Chart of CA (CA)
Long-Term Stock Price Chart of CA (CA)
Long-Term Dividend Payment History of CA (CA)
Long-Term Dividend Payment History of CA (CA)
Long-Term Dividend Yield History of CA (CA)
Long-Term Dividend Yield History of CA (CA)



Macerich -- Yield: 3.53%

Macerich (NYSE:MAC) employs 1,117 people, generates revenue of $1,105.25 million and has a net income of $1,606.93 million. The current market capitalization stands at $12.21 billion.

Macerich’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $597.04 million. The EBITDA margin is 54.02% (the operating margin is 4.97% and the net profit margin 145.39%).

Financials: The total debt represents 47.95% of Macerich assets and the total debt in relation to the equity amounts to 111.56%. Due to the financial situation, a return on equity of 33.28% was realized by Macerich.

Twelve trailing months earnings per share reached a value of $9.96. Last fiscal year, Macerich paid $2.51 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 7.74, the P/S ratio is 11.04 and the P/B ratio is finally 2.16. The dividend yield amounts to 3.53%.

Stock Charts:


Long-Term Stock Price Chart of Macerich (MAC)
Long-Term Stock Price Chart of Macerich (MAC)
Long-Term Dividend Payment History of Macerich (MAC)
Long-Term Dividend Payment History of Macerich (MAC)
Long-Term Dividend Yield History of Macerich (MAC)
Long-Term Dividend Yield History of Macerich (MAC)



Invesco -- Yield: 3.44%

Invesco (NYSE:IVZ) employs 6,430 people, generates revenue of $5,147.10 million and has a net income of $1,004.50 million. The current market capitalization stands at $13.32 billion.

Invesco’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,366.30 million. The EBITDA margin is 26.55% (the operating margin is 24.81% and the net profit margin 19.52%).

Financials: The total debt represents 32.93% of Invesco assets and the total debt in relation to the equity amounts to 80.94%. Due to the financial situation, a return on equity of 11.86% was realized by Invesco.

Twelve trailing months earnings per share reached a value of $2.40. Last fiscal year, Invesco paid $0.98 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 13.09, the P/S ratio is 2.59 and the P/B ratio is finally 1.59. The dividend yield amounts to 3.44%.

Stock Charts:


Long-Term Stock Price Chart of Invesco (IVZ)
Long-Term Stock Price Chart of Invesco (IVZ)
Long-Term Dividend Payment History of Invesco (IVZ)
Long-Term Dividend Payment History of Invesco (IVZ)
Long-Term Dividend Yield History of Invesco (IVZ)
Long-Term Dividend Yield History of Invesco (IVZ)



WestRock -- Yield: 3.28%

WestRock (NYSE:WRK) employs 41,400 people, generates revenue of $11,381.30 million and has a net income of $511.80 million. The current market capitalization stands at $11.77 billion.

WestRock’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,758.60 million. The EBITDA margin is 15.45% (the operating margin is 7.70% and the net profit margin 4.50%).

Financials: The total debt represents 22.21% of WestRock assets and the total debt in relation to the equity amounts to 48.34%. Due to the financial situation, a return on equity of 6.35% was realized by WestRock.

Twelve trailing months earnings per share reached a value of $3.18. Last fiscal year, WestRock paid $1.20 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 14.40, the P/S ratio is 1.03 and the P/B ratio is finally 1.01. The dividend yield amounts to 3.28%.

Stock Charts:


Long-Term Stock Price Chart of WestRock (WRK)
Long-Term Stock Price Chart of WestRock (WRK)
Long-Term Dividend Payment History of WestRock (WRK)
Long-Term Dividend Payment History of WestRock (WRK)
Long-Term Dividend Yield History of WestRock (WRK)
Long-Term Dividend Yield History of WestRock (WRK)



Western Digital -- Yield: 3.22%

Western Digital (NASDAQ:WDC) employs 76,449 people, generates revenue of $14,572.00 million and has a net income of $1,465.00 million. The current market capitalization stands at $14.38 billion.

Western Digital’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,916.00 million. The EBITDA margin is 20.01% (the operating margin is 11.06% and the net profit margin 10.05%).

Financials: The total debt represents 16.91% of Western Digital assets and the total debt in relation to the equity amounts to 27.84%. Due to the financial situation, a return on equity of 16.22% was realized by Western Digital.

Twelve trailing months earnings per share reached a value of $5.62. Last fiscal year, Western Digital paid $1.80 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 11.05, the P/S ratio is 0.99 and the P/B ratio is finally 1.55. The dividend yield amounts to 3.22%.

Stock Charts:


Long-Term Stock Price Chart of Western Digital (WDC)
Long-Term Stock Price Chart of Western Digital (WDC)
Long-Term Dividend Payment History of Western Digital (WDC)
Long-Term Dividend Payment History of Western Digital (WDC)
Long-Term Dividend Yield History of Western Digital (WDC)
Long-Term Dividend Yield History of Western Digital (WDC)



Cisco Systems -- Yield: 3.21%

Cisco Systems (NASDAQ:CSCO) employs 71,833 people, generates revenue of $49,161.00 million and has a net income of $8,981.00 million. The current market capitalization stands at $132.79 billion.

Cisco Systems’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $13,696.00 million. The EBITDA margin is 27.86% (the operating margin is 21.91% and the net profit margin 18.27%).

Financials: The total debt represents 22.34% of Cisco Systems assets and the total debt in relation to the equity amounts to 42.47%. Due to the financial situation, a return on equity of 15.44% was realized by Cisco Systems.

Twelve trailing months earnings per share reached a value of $1.87. Last fiscal year, Cisco Systems paid $0.80 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 14.02, the P/S ratio is 2.70 and the P/B ratio is finally 2.23. The dividend yield amounts to 3.21%.

Stock Charts:


Long-Term Stock Price Chart of Cisco Systems (CSCO)
Long-Term Stock Price Chart of Cisco Systems (CSCO)
Long-Term Dividend Payment History of Cisco Systems (CSCO)
Long-Term Dividend Payment History of Cisco Systems (CSCO)
Long-Term Dividend Yield History of Cisco Systems (CSCO)
Long-Term Dividend Yield History of Cisco Systems (CSCO)



Deere & Company -- Yield: 3.11%

Deere & Company (NYSE:DE) employs 59,600 people, generates revenue of $28,862.80 million and has a net income of $1,940.00 million. The current market capitalization stands at $25.32 billion.

Deere & Company’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4,842.50 million. The EBITDA margin is 16.78% (the operating margin is 11.99% and the net profit margin 6.72%).

Financials: The total debt represents 63.59% of Deere & Company assets and the total debt in relation to the equity amounts to 546.45%. Due to the financial situation, a return on equity of 24.55% was realized by Deere & Company.

Twelve trailing months earnings per share reached a value of $5.76. Last fiscal year, Deere & Company paid $2.40 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 13.39, the P/S ratio is 0.88 and the P/B ratio is finally 3.75. The dividend yield amounts to 3.11%.

Stock Charts:


Long-Term Stock Price Chart of Deere & Company (DE)
Long-Term Stock Price Chart of Deere & Company (DE)
Long-Term Dividend Payment History of Deere & Company (DE)
Long-Term Dividend Payment History of Deere & Company (DE)
Long-Term Dividend Yield History of Deere & Company (DE)
Long-Term Dividend Yield History of Deere & Company (DE)



T. Rowe Price Group -- Yield: 2.94%

T. Rowe Price Group (NASDAQ:TROW) employs 5,908 people, generates revenue of $3,982.10 million and has a net income of $1,229.60 million. The current market capitalization stands at $17.78 billion.

T. Rowe Price Group’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,002.60 million. The EBITDA margin is 50.29% (the operating margin is 47.48% and the net profit margin 30.88%).

Financials: The total debt represents 0.00% of T. Rowe Price Group assets and the total debt in relation to the equity amounts to 0.00%. Due to the financial situation, a return on equity of 23.80% was realized by T. Rowe Price Group.

Twelve trailing months earnings per share reached a value of $4.51. Last fiscal year, T. Rowe Price Group paid $1.76 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 15.69, the P/S ratio is 4.46 and the P/B ratio is finally 3.43. The dividend yield amounts to 2.94%.

Stock Charts:


Long-Term Stock Price Chart of T. Rowe Price Group (TROW)
Long-Term Stock Price Chart of T. Rowe Price Group (TROW)
Long-Term Dividend Payment History of T. Rowe Price Group (TROW)
Long-Term Dividend Payment History of T. Rowe Price Group (TROW)
Long-Term Dividend Yield History of T. Rowe Price Group (TROW)
Long-Term Dividend Yield History of T. Rowe Price Group (TROW)

1 comment:

  1. Nice article and thanks for sharing! I own CMI, DE, QCOM and TROW in DivGro and CSCO in another account. CA and WDC are not on my watch list b/c they don't have a long enough history of increasing dividends. MAC, WRK, IVZ are worth a look, though!

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