Johnson & Johnson is a diversified healthcare company with exceptional cash flow and a wide economic moat. It is trading about 12% below its fair value estimate of $164 per share. PepsiCo’s diversified product portfolio supports its competitive standing.
Trading 14% below its estimated worth of $174 per share, PepsiCo is expected to increase its dividend payouts by 7% annually over the next decade. Medtronic, a leader in medical devices, trades 28% below its fair value estimate of $112 per share. Known for its commitment to returning cash flow to shareholders, Medtronic has raised its dividend for 46 consecutive years.
Mondelez, with brands like Oreo and Cadbury, is trading 20% below its fair value estimate of $75 per share. The company is anticipated to increase its dividends significantly through fiscal 2033.
Top undervalued dividend picks
Schlumberger, the leading oilfield services company, is trading 32% below its fair value estimate of $57 per share. Despite near-term uncertainties, it holds strong long-term prospects. LyondellBasell is a top performer in the chemicals industry, delivering a high yield and trading 25% below its fair value estimate of $101 per share.
General Mills is a well-established company in the packaged foods industry, known for its steady dividend payouts. The stock is trading 18% below its fair value estimate of $81 per share. Microsoft is a tech giant with a solid financial position and a wide economic moat.
The company is trading 10% below its fair value estimate of $325 per share. These dividend stocks, characterized by their economic moats and dividend durability, are deemed undervalued and worth considering for investors seeking a balance of quality and income.