3 Undervalued Stocks With High Dividends Defy the Booming Market
The stock market has seen strong gains over the past year, with the S&P 500 climbing nearly 15% and the Nasdaq-100 surging over 20%. Yet some companies still trade at low valuations while offering high dividend yields. Three firms—Energy Transfer, UPS, and Realty Income—stand out for their attractive payouts and potential growth despite broader market challenges.
Energy Transfer currently trades at less than nine times its earnings, far below the average for its energy midstream peers. The company also holds a multi-billion-dollar backlog of expansion projects, which should increase cash flow in the coming years. Its dividend yield exceeds 8%, more than six times higher than the S&P 500’s average of 1.2%.
Energy Transfer, UPS, and Realty Income offer high dividend yields at low valuations, contrasting with the broader market’s gains. Their cost-cutting measures, expansion projects, and strong operational returns position them as potential opportunities. However, retail stocks may struggle as Black Friday spending weakens and competitive pressures grow.
