7 Value-Priced Dividends With Yields Up to 11%

The market-at-large is pricey by historic metrics. So let’s look previous the expensive, low-yielding ETFs in favor of low cost dividend shares.

That’s proper, good ol’ worth investing bargains. With excessive yields too! We’re speaking about divvies of 5%, 8% and even 11% that we’ll focus on in a second.

The spring market dip certain was temporary, wasn’t it? The S&P 500 sank into near-bear territory in roughly a month, then snapped again simply as fast.

Now? If We’re Shopping for the Market, We’re Shopping for Even Larger

In doing so, Mr. and Ms. Market took valuations to excessive ranges. The S&P 500’s ahead price-to-earnings (P/E) ratio of twenty-two.1 stays in rarefied air, final reached through the COVID rebound, and earlier than that, the dot-com bubble.

Which is okay. We’ll depart the 22 P/Es to the vanilla buyers whereas we give attention to bargains with respect to 2 “money is king” metrics:

Huge dividends: These beneficiant shares dish out 4x to 9x the market’s yield.
Low-cost price-to-cash-flow: These corporations are priced grime low cost with respect to the money circulate they generate.

Let’s begin with Virginia-based electrical utility , which we just lately mentioned as a low-beta title. This implies AES, being a secure, stodgy utility, is extra insulated from market pullbacks than run-of-the-mill dividends.

AES additionally has upside potential. Its renewable energy-selling enterprise provides it development potential that many utility shares don’t have.

Potential, However So Far, It Hasn’t Proven Up A lot in Follow

It’s additionally low cost. AES trades at an inexpensive 5 instances cash-flow estimates, in addition to a 0.6 PEG that means it’s additionally low cost in comparison with its development estimates. (Bear in mind: A PEG below 1.0 indicators {that a} inventory is cheap.) The inventory yields greater than 5%, as well, which is healthier than the already beneficiant utility sector.

is one other utility firm—this yet another typical of the sector. It’s the father or mother of regulated utility Southern California Edison (SCE), which serves greater than 15 million prospects and generates a lot of its electrical energy from renewable sources together with photo voltaic, wind, and hydro. It does, nonetheless, have a second enterprise—Trio (previously Edison Power), a world vitality advisory agency that serves massive business, industrial and institutional organizations.

Not like different utilities, nonetheless, EIX is a little more “thrilling.” It spent years in court docket preventing litigation over wildfire harm and ended up having to pay a number of billion-dollar-plus settlements. And the authorized drama has returned in 2025. Shares have misplaced greater than 1 / 4 of their worth, with most of that coming in January amid Los Angeles County wildfires, together with the large Eaton Fireplace, which prompted a number of fits in opposition to SCE over allegations that the corporate had “violated public security and utility codes and was negligent in its dealing with of energy security shut-offs.” SCE can be being investigated in reference to the Hurst Fireplace.

In Reality, Wildfire Woes Have Been Par for the Course

If, for a minute, we closed our eyes and ignored all that, there’s rather a lot to love about Edison. It’s anticipated to generate first rate top-line development and a big snap-back in earnings over the following couple years. The large drop in shares has launched EIX’s yield to just about 6%. It trades at simply 3 instances cash-flow estimates. And its PEG, which at fractionally below 1 suggests the inventory is just mildly underpriced, is considerably down from the almost 3 it traded at after I evaluated the inventory a pair years in the past.

However we will’t ignore the fireplace liabilities—they’re why EIX’s valuations are so low. That makes Edison a a lot greater high-risk, high-reward gamble than the typical utility.

is technically a cyclical inventory, however it acts defensively. That’s as a result of, as a packaging specialist, it’s within the enterprise of—effectively, different enterprise’s enterprise. It makes every thing from high-barrier paperboard trays for beef and meats to glass dressing bottles to overwrap for house and private care. And its purposes go far past the grocery retailer: Amcor’s merchandise are utilized in backyard and outside merchandise, agriculture, pet care, healthcare, even constructing and building. So Amcor is concurrently a play on the broader economic system and all the companies it helps, however it additionally fills a significant want throughout a diversified set of corporations.

AMCR stands out for a couple of causes:

It’s a Dividend Aristocrat with a 5%-plus yield, which is uncommon. The hallowed group of dividend growers know the right way to stack pennies over time, however their headline numbers usually depart rather a lot to be desired.
Amcor’s shares are usually much less risky than most.
The inventory is affordable, a minimum of so far as money circulate is worried; P/CF is roughly 6x proper now. It’s rather less enticing by different metrics; its ahead P/E (12) is so-so, and its PEG (1.3), whereas cheaper than the market, continues to be a bit overpriced.

is an vitality providers agency that gives pure gasoline compression providers, principally within the Permian Basin of Texas and New Mexico. Its compression models are essential to upstream and midstream pure gasoline companies, so it’s in a position to safe multiyear, fixed-revenue contracts. There’s nothing novel concerning the enterprise mannequin, although. Like different vitality providers companies, if pure gasoline/liquefied pure gasoline (LNG) is in demand, Kodiak will likely be in demand, so the truth that international LNG demand is anticipated to develop over the following few years bodes effectively for KGS.

That’s largely as a result of Kodiak is extraordinarily well-positioned to seize that development. In late 2023, KGS introduced it might purchase CSI Compressco LP to create the business’s largest compression fleet. Kodiak’s fleet is younger, too (learn: much less upkeep and alternative prices).

There’s not a lot inventory historical past to look at, nonetheless. Kodiak is a comparatively new problem that went public only a few months earlier than the CSI announcement. However the firm has began a dividend and raised it twice since then, together with an almost 10% enchancment introduced in April 2025.

A Inventory Doubler-Plus + A New and Rising Dividend. Good Begin!

In the meantime, its yield has wafted as much as over 5% amid vitality’s weak point this yr—and left shares comparatively low cost. KGS trades at roughly 6 instances money circulate estimates and a low PEG of 0.13.

is one other Permian Basin vitality gear and providers agency, this one offering transportation and logistics, storage options, and contract labor providers to grease and pure gasoline E&P companies, in addition to different oilfield providers corporations. Its most essential providing is mesh frac sand utilized in hydraulic fracturing (fracking). I had been conserving tabs on it due to its unorthodox streak of dividend hikes, however that streak stopped earlier this yr.

The Lure Door Opened Quickly After AESI Stopped Elevating

It’s not preferrred. Neither is the truth that AESI shares have been hammered to the tune of 45% this yr. Once more, vitality providers haven’t had an ideal 2025, however Atlas has been downright depressing amid slower-than-expected U.S. completion exercise and droopy frac-sand costs. If there’s any silver lining to that, it’s that AESI shares now commerce at simply 5.7 instances estimates for money flows, in addition to a gorgeous PEG of 0.75.

The dividend a minimum of seems to be secure, too. Whereas issues look dangerous from an adjusted earnings perspective ($1.00 in dividends yearly vs. forecasts for simply 25 cents this yr), Atlas has greater than sufficient FCF to cowl the payout. Instance: Final quarter, it generated $48.9 million in adjusted FCF whereas paying out $30.9 million. These money flows are substantial as a result of AESI is a low-cost operator—essential for survival on this business. However like every vitality providers supplier, Atlas wants commodity costs to cooperate.

It’s uncommon for a blue-chip inventory like to yield north of seven%, however it’s additionally uncommon for a blue-chip inventory like UPS to have its shares hemorrhage a lot with no recession or broader bear market.

Decrease-margin e-commerce volumes, greater prices due to its unionized workforce, and a weak freight setting hampered the corporate in 2024.

Then in early 2025, it spooked buyers with a weak 2025 forecast and introduced that—in hopes of shifting away from these lower-margin volumes—it might drastically cut back its enterprise with , which accounted for roughly 10%-12% of annual UPS revenues. The April tariff announcement additionally hit shares arduous.

The end result? UPS shares have misplaced almost half of their worth in simply two years.

The upshot? UPS trades at roughly 8 instances cash-flow estimates and has by no means supplied a greater yield in its 26 years of buying and selling.

Sadly, Dividend Development Had Little to Do With It

Is UPS a dividend lure? Maybe. The corporate pulled its full-year income and revenue forecasts in April, and didn’t carry them again in its late July report.

In the meantime, Wall Road is anticipating a roughly 15% drop in adjusted earnings, to $6.61 per share. That particular quantity issues: UPS has a goal dividend payout ratio of roughly 50% of prior-year adjusted EPS. It at present pays $6.56 throughout 4 quarterly dividends. (That’s 99%!) CEO Carol Tomé continued to sign dedication to the dividend within the earnings name—“UPS is rock-solid sturdy and so is our dividend. The united statesdividend is backed by stable free money circulate and a robust investment-grade steadiness sheet,” she mentioned—but when the supply big continues to wrestle, easy numbers would possibly pressure administration’s hand.

, one way or the other, continues to be in enterprise. Cost apps like PayPal, Venmo and Zelle have been taking enterprise from the “OG” of cash switch. WU boasts a giant yield however for the mistaken purpose—its divvie appears huge as a result of shares are (deservedly) method down!

Western Union Has Been Headed South for Years

WU, to its credit score, has launched an initiative referred to as “Evolve 2025” during which it’s rolling out new merchandise, enhancements and an operational effectivity program. It’s additionally increasing its digital pockets choices in Mexico and Singapore. And its newest transfer, introduced only a couple days in the past, is the $500 million acquisition of Miami-based , aka Intermex, which serves some 6 million prospects who ship cash from the USA, Canada, Spain, Italy, the UK, and Germany to greater than 60 international locations.

However c’mon man—this canine is useless. The enterprise trades for 4x money circulate and a sub-5 ahead P/E, however who cares? Not me.

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