4 dividend stocks that are also on sale

The first quarter of the year was a success for investors. The overall market NYSE: SPY rose nearly 10%, fueled by robust economic indicators, optimism and hype around AI. The semiconductor sector has led the charge, riding a wave of demand spurred by the artificial intelligence revolution, with gains close to 28%.

However, as the quarter progressed, the focus shifted to traditionally defensive sectors such as utilities, financials, industrials and consumer staples. Surprisingly, these sectors have caught up with the broader market, and some have even outperformed it, signaling a subtle but significant shift towards risk-free assets.

In this context, dividend aristocrats – companies with a history of consistently increasing dividends – emerge as potential havens of stability and income. As market sentiment suggests defensive positions, identifying undervalued stocks with attractive dividend yields becomes advantageous.

So, let’s explore four dividend aristocrats positioned at fair values ​​or discounts. They are ready to withstand market volatility while offering investors a reliable income stream.

Four dividend aristocrats trading near fair value

Pfizer, a major US-based multinational biotechnology company valued at $157 billion, has a remarkable record of increasing dividends for fourteen consecutive years. With a current dividend yield of 6.05%, well above average, and a three-year annualized dividend growth rate of 12.89%, Pfizer stands out as an attractive option for income-oriented investors.

Despite posting a modest 3% decline year to date, the stock is trading near significant multi-year support levels. Recent price action indicates a potential bottom near $27, suggesting a critical moment for the stock’s near-term trajectory. Analysts have assigned a consensus rating on Pfizer as Hold, with a price target of $36.88, signaling notable upside potential of 32.88% from current levels.

MO is a cornerstone of the US tobacco industry and one of its major players. It has a fifty-five year track record of dividend increases. Altria is an attractive choice for income-seeking investors, with an impressive dividend yield of 8.99% and a solid three-year annualized dividend growth rate of 4.14%.

Shares of the tobacco giant have shown resilience, posting a year-to-date gain of more than 8%, mirroring the performance of the broader market. Of note is Altria’s attractive price-to-earnings (P/E) ratio of 9.54, paired with a forecast earnings growth rate of 4.13% for the full year. Analyst sentiment on Altria remains balanced, with a Hold rating based on four analyst ratings. The consensus price target of $46.82 suggests a potential upside of 7.34% from current levels, highlighting the stock’s attractiveness to investors seeking income and modest capital appreciation.

Ford, the renowned US automotive giant founded in 1903, has a market capitalization of $52 billion and currently boasts a price-to-earnings (P/E) ratio of 12.29. With an impressive dividend yield of 4.52%, Ford remains an attractive option for income-oriented investors. Strengthening its appeal is a commendable three-year annualized dividend growth rate of 58%.

Despite enduring a volatile market environment, Ford has demonstrated resilience, posting year-to-date gains of nearly 9%, closely tracking the performance of the broader market. Based on thirteen analyst ratings, the stock is rated Hold, with a consensus price target of nearly 4% upside potential.

T, recognized as the largest telecommunications company in the world, boasts a substantial market capitalization of $125 billion. With an impressive dividend yield of 6.3% and an annual dividend payment of $1.11, AT&T stands out as a reliable income generator in a competitive market landscape.

In particular, the stock presents an attractive proposition for value investors, with a modest price-to-earnings (P/E) ratio of 8.98. Despite a relatively modest year-to-date gain of 4.98%, analysts remain optimistic about AT&T’s prospects. Earning positive sentiment from fifteen analyst ratings, the stock holds a Moderate Buy rating, with a consensus price target projecting a promising 22% upside potential. As investors seek stability and income in a changing market environment, AT&T’s robust dividend yield and favorable valuation make it an attractive choice for those looking to balance income and growth in their portfolios.

Before you consider Ford Motor, you’ll want to hear this.

MarketBeat tracks Wall Street’s highest-rated and best-performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market takes hold… and Ford Motor wasn’t on the list.

While Ford Motor currently has a “Hold” rating among analysts, top analysts believe these five stocks are better buys.

View the five stocks here