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10 Undervalued Hidden Gem Dividend Stocks For Savvy Investors


Updated on May 29th, 2025 by Bob Ciura

The average dividend yield in the S&P 500 Index remains low at just 1.3%. As a result, income investors should focus on higher-yielding securities, if they want additional income from their stock portfolios.

Even better, investors can buy high dividend stocks when they are also undervalued, which could lead to high total returns in the coming years.

After all, the goal of rational investors is to maximize total return under a given set of constraints. High dividend stocks can contribute a significant portion of a stock’s total return.

With this in mind, we compiled a list of high dividend stocks with dividend yields above 5%. You can download your free copy of the high dividend stocks list by clicking on the link below:

 

Click here to instantly download your free high dividend stocks spreadsheet of 160+ securities now, along with important investing metrics.

Note: The spreadsheet uses the Wilshire 5000 as the universe of securities from which to select, plus a few additional securities we screen for with 5%+ dividend yields.

The free high dividend stocks list spreadsheet has our full list of ~170 individual securities (stocks, REITs, MLPs, etc.) with 5%+ dividend yields.

Interestingly, all returns come from only three sources:

  1. Dividends (or distributions, interest, etc.)
  2. Growth on a per share basis (typically measured as earnings-per-share)
  3. Valuation multiple changes (typically measured as a change in the price-to-earnings ratio)

Combined, these three sources make up total return.

Historical total return, while interesting, is not what matters in investing.  It’s expected future returns that we care about.

And since total returns can only come from the three sources mentioned above, you can use the expected total return framework to clarify your thinking on where you expect total returns to come from.

The following list represents the 10 most undervalued stocks in the Sure Analysis Research Database that also have yields above 5%.

The list excludes MLPs, BDCs, and REITs. The 10 undervalued hidden gems below are sorted by expected return from valuation changes, from lowest to highest.

Table of Contents

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Undervalued Hidden Gem #10: TotalEnergies SE (TTE)

TotalEnergies is the fifth-largest oil and gas company in the world based on its market capitalization. Like the other oil and gas super majors, it is a fully integrated company. TotalEnergies operates in four segments: upstream, downstream (mostly refining), marketing & services and gas, renewables & power.

In late April, TotalEnergies reported (4/30/25) financial results for the first quarter of fiscal 2025. Its production grew 4% over the prior year’s quarter thanks to start-up and ramp-up of some fields. However, oil prices moderated and refining margins collapsed off blowout levels in the prior year’s period.

As a result, earnings-per-share declined -15%, from $2.14 to $1.83. TotalEnergies has repeatedly stated that its dividend is sustainable at Brent prices around $40 and its breakeven oil price is below $25.

We expect the company to return to growth mode in the upcoming years but we also expect oil prices to deflate, as supply from the U.S. and Canada keeps rising and electric vehicles and clean energy projects boom.

Click here to download our most recent Sure Analysis report on TTE (preview of page 1 of 3 shown below):

Undervalued Hidden Gem #9: Western Union Company (WU)

The Western Union Company is the world leader in the business of domestic and international money transfers. The company has a network of approximately 550,000 agents globally and operates in more than 200 countries.

About 90% of agents are outside of the US. Western Union operates two business segments, Consumer-to-Consumer (C2C) and Other (bill payments in the US and Argentina).

Western Union reported mixed Q1 2025 results on April 23rd, 2025. Company-wide revenue decreased 6% to $983.6M from $1,049.7M and diluted GAAP earnings per share decreased to $0.37 in the quarter compared to $0.41 in the prior year on lower revenue, operating expenses, and tax rate.

Revenue declined because of challenges in Iraq offset by higher Banded Digital transactions and strength in Consumer Services.

CMT revenue fell 9% to $872.9M from $962.0M on a year-over-year basis even with 2% higher transaction volumes. Branded Digital Money Transfer CMT revenues increased 7% as transactions rose 14%. Digital revenue is now 28% of total CMT revenue and 35% of transactions.

Click here to download our most recent Sure Analysis report on WU (preview of page 1 of 3 shown below):

Undervalued Hidden Gem #8: Pfizer Inc. (PFE)

Pfizer Inc. is a global pharmaceutical company focusing on prescription drugs and vaccines. Pfizer’s top products are Eliquis, Prevnar family, Paxlovid, Comirnaty, Vyndaqel family, Ibrance, and Xtandi. Pfizer had revenue of $63.6B in 2024.

Pfizer reported Q1 2025 results on April 29th, 2025. Company-wide revenue fell 8% operationally and adjusted diluted earnings per share climbed 12% to $0.92 versus $0.82 on a year-over-year basis.

The revenue decline was because of a steep drop in Plaxlovid sales on adjustments in prior years and manufacturer discounts from the IRA Medicare Part D Redesign, offset by growing revenue from the existing portfolio, and cost savings.

Global Biopharmaceuticals sales declined 8% led by a decrease in Primary Care (-20%), offset by gains in Specialty Care (+6%), and Oncology (+7%).

Click here to download our most recent Sure Analysis report on PFE (preview of page 1 of 3 shown below):

Undervalued Hidden Gem #7: Peoples Financial Services (PFIS)

Peoples Financial Services (PFIS) is the holding company of Peoples Security Bank and Trust Company, a community bank that was founded in 1905 and is headquartered in Scranton, Pennsylvania.

It operates 44 branches in Pennsylvania and provides various banking products and services to consumers, municipalities and businesses.

On July 1st, 2024, Peoples Financial Services completed its acquisition of FNCB Bancorp in an all-stock deal. As per the terms of the deal, the shareholders of FNCB now own ~29% of the combined entity.

Thanks to the merger, the bank grew its total assets from $3.7 billion to $5.5 billion and thus it became the 5th largest community bank in Pennsylvania.

In early May, Peoples Financial Services reported (5/1/24) financial results for the first quarter of fiscal 2025. Loans and deposits grew 39% and 35%, respectively, over the prior year’s quarter, thanks to the acquisition of FNCB Bancorp.

Net interest margin expanded impressively, from 2.29% in the prior year’s quarter to 3.50% thanks to the much higher net interest margin of the acquired bank.

As a result, net interest income more than doubled and earnings-per-share nearly tripled, from $0.55 to $1.51, beating the analysts’ consensus by $0.19.

Click here to download our most recent Sure Analysis report on PFIS (preview of page 1 of 3 shown below):

Undervalued Hidden Gem #6: Midland States Bancorp (MSBI)

Midland States Bancorp (MSBI) is the holding company of Midland States Bank, a community bank that was founded in 1881 and is headquartered in Effingham, Illinois.

It operates 53 branches in Illinois and Missouri and provides a wide range of banking products and services to individuals, businesses, municipalities and other entities. Midland States Bancorp has total assets of $7.5 billion.

In late April, Midland States Bancorp reported (4/30/25) results for Q1-2025. Its net interest margin expanded sequentially from 3.19% to 3.48% and its net interest income grew 4%. As a result, it switched from an excessive loss per share of -$2.52 to earnings-per-share of $0.57, beating the analysts’ consensus by $0.02.

We believe that the excessive loan losses posted in Q4-2024 will not recur but they raise a big red flag on the quality of management and the risk of this small-cap bank.

Click here to download our most recent Sure Analysis report on MSBI (preview of page 1 of 3 shown below):

Undervalued Hidden Gem #5: Bristol-Myers Squibb (BMY)

Bristol-Myers Squibb was created when Bristol-Myers and Squibb merged on October 4th, 1989. This leading drug maker of cardiovascular and anti-cancer therapeutics has annual revenues of about $46 billion.

On December 11th, 2024, Bristol-Myers raised its quarterly dividend 3.3% to $0.62.

On April 24th, 2025, Bristol-Myers reported first quarter results for the period ending March 31st, 2025. For the quarter, revenue declined 6% to $11.2 billion, but this was $490 million above estimates.

Adjusted earnings-per-share of $1.80 compared to -$4.40 in the prior year and was $0.30 better than expected. The company suffered a steep earnings-per-share loss in Q1 2024.

Adjusting for unfavorable currency exchange, revenue fell 4% for the quarter. U.S. revenues declined 7% to $7.9 billion. International was down 2% to $3.3 billion, but revenue grew 2% when excluding currency exchange.

Revlimid, which treats myeloma, decreased 44% to $936 billion due to generic competition.

Bristol-Myers provided revised guidance for 2025 as well. Adjusted earnings-per-share are projected to be in a range of $6.70 to $6.90 for the year, up from $6.55 to $6.85 previously.

Click here to download our most recent Sure Analysis report on BMY (preview of page 1 of 3 shown below):

Undervalued Hidden Gem #4: Virtus Investment Partners (VRTS)

Virtus Investment Partners, Inc. is a distinctive partnership of boutique investment managers, singularly committed to the long-term success of individual and institutional investors.

The firm offers a diverse range of investment strategies across asset classes, including equity, fixed income, multi-asset, as well as alternative investments.

These strategies are available in multiple product forms, such as open-end mutual funds, closed-end funds, ETFs, retail separate accounts, and institutional accounts.

Virtus operates through a multi-manager model, partnering with affiliated managers and select unaffiliated sub-advisers, each maintaining distinct investment philosophies and processes.

On April 25th, 2025, Virtus reported its Q1 results. Total AUM fell by 7% year-over-year to $167.5 billion due to net outflows in U.S. retail funds, institutional accounts, and retail separate accounts, as well as negative market performance, partially offset by inflows in ETFs.

Net outflows of ($3.0) billion worsened from ($1.2) billion last year, primarily due to broader institutional and retail redemptions. However, adjusted EPS rose 6% to $5.73, driven by higher investment management fees and a slight decrease in operating expenses.

Click here to download our most recent Sure Analysis report on VRTS (preview of page 1 of 3 shown below):

Undervalued Hidden Gem #3: APA Corporation (APA)

APA explores and produces crude oil, natural gas and natural gas liquids (NGLs) in the U.S., Egypt and the North Sea. It has a market capitalization of $6.3 billion.

In 2024, APA produced about 409,000 barrels of oil equivalent per day (excluding non-controlling interest). In this period, oil, natural gas, and NGLs comprised 85%, 7% and 8% of the total revenue of the company, respectively.

In early May, APA reported (5/7/25) financial results for the first quarter of 2025. Its production grew 2% sequentially thanks to strong execution in wells acquired from Callon Petroleum and the average realized prices of oil and gas improved.

As a result, earnings-per-share grew 34%, from $0.79 to $1.06, and exceeded the analysts’ consensus by $0.24. APA cut its dividend by -90% in 2020 amid the pandemic but it restored its dividend in 2023.

APA has discovered about 700 million barrels of oil in Suriname, where it has exciting growth potential. In addition, in recent years, the company greatly benefited from above average oil prices, which resulted primarily from deep production cuts by OPEC and Russia.

Click here to download our most recent Sure Analysis report on APA (preview of page 1 of 3 shown below):

Undervalued Hidden Gem #2: Shutterstock Inc. (SSTK)

Shutterstock sells high-quality creative content for brands, digital media and marketing companies through its global creative platform.

Shutterstock’s platform hosts the most extensive and diverse collection of high-quality 3D models, videos, music, photographs, vectors and illustrations for licensing. The $656 million company reported $935 million in revenues last year and is headquartered in New York, New York.

On January 7th, 2025, Shutterstock announced it entered a merger agreement with Getty Images through a merger of equals. The combined company will retain the name Getty Images Holdings, Inc and trade on the NYSE under ticker GETY.

The combined company would have revenue between $1,979 million and $1,993 million, 46% of it being subscription revenue. About $175 million of annual cost savings is forecast by the third year, with most of this expected after 1 to 2 years.

On May 2nd, 2025, Shutterstock published its first quarter results for the period ending March 31, 2025. While quarterly revenue grew by a solid 13% year-on-year, it missed analyst estimates by nearly $7 million. Adjusted EPS of $1.03 increased by 12%, and also missed analyst estimates by $0.01.

Click here to download our most recent Sure Analysis report on SSTK (preview of page 1 of 3 shown below):

Undervalued Hidden Gem #1: AES Corp. (AES)

The AES (Applied Energy Services) Corporation has businesses in 14 countries and a portfolio of approximately 160 generation facilities. AES produces power through various fuel types, such as gas, renewables, coal, and oil/diesel.

The company has more than 36,000 Gross MW in operation. In 2024, AES produced $12.3 billion in revenues.

AES Corporation reported first quarter results on May 1st, 2025, for the period ending March 31, 2025. Adjusted EPS decreased 46% to $0.27 for Q1 2025, which missed analyst estimates by $0.07.

The company completed construction of 643 MW of energy storage and solar in the quarter, and signed or wawarded new long-term PPAs for 443 MW of solar and energy storage.

The company constructed and acquired 3 GW of renewable energy in 2024, as well as constructed a 670 MW combined cycle gas plant in Panama. Leadership maintained its 2025 guidance, expecting adjusted EPS of $2.10 to $2.26 for the full fiscal year.

Click here to download our most recent Sure Analysis report on AES (preview of page 1 of 3 shown below):

Final Thoughts & Additional Reading

If you are interested in finding high-quality dividend growth stocks and/or other high-yield securities and income securities, the following Sure Dividend resources will be useful:

High-Yield Individual Security Research

Other Sure Dividend Resources

Thanks for reading this article. Please send any feedback, corrections, or questions to support@suredividend.com.



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