Undervalued Dividend Stocks: 9 Picks for November 2026, Checked Against SEC Filings

Short answer: nine undervalued dividend stocks stand out in November 2026. They are Chevron (CVX), EOG Resources (EOG), Expand Energy (EXE), Cognizant (CTSH), Snap-on (SNA), Korn Ferry (KFY), Ingredion (INGR), Marzetti (MZTI) and Gap (GAP). Each passed our nightly value screen. Each pays 2% to 3.6% a year. Each pays out less than it earns, and each owes little. None of them is a sure thing. The risk for each one is below.

Data date: our screen ran on 3 November 2026, using closing prices from 2 November.¹ Every dividend and profit figure was then checked against the company's latest SEC filing.

How we decide "cheap" and "safe dividend"

Most lists of undervalued dividend stocks start with the yield. That is backwards. A high yield often just means the price crashed. We start with the business.

Every night we score US companies on two tests. Both use only numbers the company filed with the SEC (the US market regulator).²

• Is it a good business? It must score well on profit per dollar invested, margins, growth, steady cash, and debt.
• Is it cheap? We compare the price to the company's profit and its free cash flow. Free cash flow is the cash left after paying for everything the business needs to keep running. Think of it as the money that could actually be paid to you.

On 3 November, 724 of 3,273 companies passed both tests.¹ We then kept only those paying at least 2% a year with low debt. Low debt here means owing less than half of what the company is worth on its books. That left 42 names. See the full live list.

From those 42, we picked nine by hand. Each had to clear three more checks:

1. The payout ratio is sane. The payout ratio is the share of profit paid out as dividends. Under about 70% leaves room for a bad year. Over 100% means the company pays more than it earns.
2. Cash covers it too. Profit can be bent by accounting. So we also checked the dividend against free cash flow.
3. No accounting red flags. We dropped any company with a recent restatement (fixing past numbers) or a warning that its money controls are weak.

Two words you will see a lot:

• Dividend yield is the yearly dividend divided by the share price. A $100 stock paying $3 a year yields 3%. We use the latest quarterly dividend times four.
• P/E (price to earnings) is the share price divided by a year of profit per share. A P/E of 10 means you pay $10 for each $1 of yearly profit. Lower is cheaper.

You can run the payout sum on any stock with our free dividend payout ratio calculator.

The 9 undervalued dividend stocks at a glance

Company	Ticker	Yield	Payout ratio (of profit)	Why it looks cheap
Chevron	CVX	3.1%	67%	6% cash yield; Berkshire Hathaway is a holder
EOG Resources	EOG	2.6%	32%	About 12× profit, little debt
Expand Energy	EXE	2.6%	20%	7.5× profit; 29% below its 52-week high
Cognizant	CTSH	2.0%	24%	11× profit; 25% below its high
Snap-on	SNA	2.7%	50%	14% off its high; dividend raised 14%
Korn Ferry	KFY	2.8%	39%	15× profit, 7.5% cash yield
Ingredion	INGR	3.3%	35%	10.5× profit; 20% below its high
Marzetti	MZTI	3.6%	57%	37% below its high
Gap	GAP	3.2%	30%	About 9.6× a normal year's profit

Yield: latest quarterly dividend × 4, divided by the 2 November close. Payout ratio: dividends paid over the last 12 reported months, divided by profit over the same months, from each company's filings. Gap uses its last full fiscal year, for reasons explained below. "Cash yield" is free cash flow divided by the company's market value.¹

Notice the mix. Three of the nine sell oil or gas. That is where the screen finds the most cheap, low-debt payers right now. If you buy more than one, spread across industries.

The nine, one by one

1. Chevron (CVX): 3.1% yield

Chevron pays $1.78 a share each quarter, up from $1.71 last year.³ Over the 12 months to June 2026 it paid $13.9 billion in dividends. It earned $20.6 billion and made $27.0 billion of free cash flow.³ So the dividend took about two-thirds of profit and about half of the spare cash.

Chevron is the least cheap name here on profit, at about 22× earnings. It made the list on cash: $6 of free cash flow for every $100 of share price.

Main risk: oil prices. Second-quarter profit was $12.1 billion, against $2.5 billion a year earlier.³ Profits that jump with energy prices can fall with them too.

2. EOG Resources (EOG): 2.6% yield

EOG drills for oil and gas in the US. It pays $1.02 a share each quarter.⁴ In the last 12 reported months it paid $2.2 billion in dividends, against $6.9 billion of profit.⁴ That is a payout ratio of about 32%. It has also cut its share count by 11% since 2021, which leaves more profit for each remaining share.

Main risk: the same as Chevron, with less to cushion it. EOG has no refining or chemicals arm. Its income tracks the price of oil and gas closely.

3. Expand Energy (EXE): 2.6% yield

Expand is one of America's largest natural gas producers. It pays $0.575 a share each quarter.⁵ Over the 12 months to September 2026 it paid $548 million in dividends. It earned $2.75 billion.⁵ That 20% payout is the lowest on this list. The shares trade at about 7.5× profit and sit 29% below their 52-week high.

Main risk: gas prices swing hard, and so does this company's profit. In 2024 it lost $714 million.⁵ Its share count is also up 72% since 2021 after a merger, so old per-share history is a poor guide.

4. Cognizant (CTSH): 2.0% yield

Cognizant runs IT projects and back-office work for big companies. It pays $0.33 a share each quarter.⁶ Over the 12 months to September it paid $616 million in dividends. Profit was $2.57 billion.⁶ That is a 24% payout. Third-quarter sales rose 4.6% from a year earlier, to $5.66 billion.⁶

So why is it cheap? Investors fear AI tools will shrink the outsourcing work it sells.⁷ The stock trades about 25% below its 52-week high, at roughly 11× profit.

Main risk: the fear could be right. If clients need fewer people for coding and support work, revenue could shrink for years. The low payout gives the dividend room, but the price could stay low.

5. Snap-on (SNA): 2.7% yield

Snap-on sells tools to car mechanics, often from vans that visit the garage. It raised its quarterly dividend 14% this year, from $2.14 to $2.44.⁸ In the last 12 reported months, dividends were $506 million and profit was $1.01 billion.⁸ That is about a 50% payout.

At about 19× profit, Snap-on is not a bargain-bin stock. It passed the screen on quality: steady margins and little debt. The price is 14% below its 52-week high.

Main risk: profit is slipping. Third-quarter profit was $243 million, down from $265 million a year earlier.⁸ Snap-on also lends money to mechanics to buy its tools. If mechanics struggle, some of those loans go bad.

6. Korn Ferry (KFY): 2.8% yield

Korn Ferry helps companies find and pay senior staff. It raised its quarterly dividend from $0.48 to $0.55 this year.⁹ Over the 12 months to July 2026 it paid $109 million in dividends. Profit was $280 million.⁹ That is a payout of about 39%. Free cash flow was $319 million, so cash covers the dividend nearly three times.

Main risk: hiring is one of the first things companies cut in a slowdown. When they stop hiring, Korn Ferry's fees fall fast.

7. Ingredion (INGR): 3.3% yield

Ingredion turns corn and other plants into starches and sweeteners for food makers. It pays $0.82 a share each quarter.¹⁰ Over the 12 months to June it paid $210 million in dividends. Profit was $592 million.¹⁰ That is a 35% payout.

The stock is cheap because 2026 has gone badly. A "thermal event" at its Argo, Illinois plant raised costs and cut output.¹⁰ Operating profit for the first half fell 29%, to $391 million.¹⁰

Main risk: free cash flow is thinner than profit. Over the same 12 months it was $355 million, so the dividend took 59% of it. If the plant problems drag on, that margin gets tight.

8. Marzetti (MZTI): 3.6% yield

You may know Marzetti salad dressings, or the old company name, Lancaster Colony. It has raised its dividend for 63 years in a row.¹¹ It now pays $1.00 a share each quarter. In the year to June 2026, it paid $109 million in dividends and earned $192 million.¹¹ That is a 57% payout. Free cash flow of $206 million covered it too.

The shares are 37% below their 52-week high. Sales barely grew, rising 1% to $1.93 billion last year.¹¹

Main risk: in May 2026 it bought Bachan's, a barbecue sauce brand, for about $400 million.¹¹ The company calls it the largest deal in its history. It borrowed $200 million to help pay. If the deal disappoints, debt and slow growth meet at the wrong time.

9. Gap (GAP): 3.2% yield

Gap owns Old Navy, Gap, Banana Republic and Athleta. It pays $0.175 a share each quarter, up from $0.165.¹²

Here is a trap inside a good-looking number. Our screen shows Gap at about 6× profit. But the last 12 months include two one-off gains. Gap booked about $417 million of tariff refunds and a $313 million legal settlement.¹² Neither will repeat.

So we used its last full fiscal year instead, which ended in January 2026. Profit was $816 million and dividends were $247 million. That is a 30% payout, at about 9.6× profit.¹² Still cheap. Just not as cheap as it first looks.

Main risk: fashion is fickle. Sales were $15.4 billion last year and have grown only slowly.¹² One bad season can wipe out a year of progress.

The high yielders we threw out, and why

Our list of 42 included some much bigger yields. We left them out on purpose. This is the most useful part of the article, because these are the names that tempt beginners.

Company	Yield shown	Why we cut it
Innovative Industrial Properties (IIPR)	14.0%	Paid $216M in dividends on $138M of profit13
RMR Group (RMR)	10.7%	Dividends ran at about 1.5× profit1
John B. Sanfilippo (JBSS)	7.4%	Includes special dividends; payouts beat free cash flow14
Corteva (CTVA)	6.0%	Split in two on 1 October; the yield mixes old and new15
Hormel Foods (HRL)	5.4%	Paid $641M in dividends on $343M of profit16
NVE Corp (NVEC)	5.2%	Paid out slightly more than it earned1
Watsco (WSO)	4.2%	Near miss: dividends were 105% of profit17

A few notes on the biggest names.

Innovative Industrial Properties rents buildings to cannabis growers. Over 12 months it paid $1.57 in dividends for every $1 of profit.¹³ A 14% yield is the market telling you it expects a cut.

Hormel is a well-known dividend payer. But profit over the last 12 months was $343 million, down from $1.0 billion in 2022.¹⁶ Dividends were nearly twice that profit. Cash flow still covers it for now. But a payout that high is a warning, not a bargain.

Corteva is not a trap. It just spun off its seed business as a new company, Vylor, on 1 October.¹⁵ Shareholders got one Vylor share for each Corteva share. The share price dropped as value moved to Vylor. Until a new dividend is set, any yield figure is unreliable.

Watsco was the hardest call. It is a strong business, and cash covers the dividend. But it paid out $499 million on $476 million of profit.¹⁷ Our rule says no. If profit recovers, it could come back.

We also dropped three names for accounting flags in their filings: Archer-Daniels-Midland (a restatement), Interparfums (a weak-controls finding) and Immersion (both).

The lesson for any list of undervalued dividend stocks: a yield is only as good as the profit behind it. Our how to live off dividends guide shows what a dividend cut does to your income.

How this list compares with other "undervalued dividend stocks" lists

We read the top results for this search before writing. Here is what we found.

• Morningstar's list of 10 undervalued dividend stocks dates from January 2026.¹⁸ It leans on its analysts' fair-value estimates. Those are useful, but the prices are now ten months old.
• Sure Dividend's list, updated in October 2026, ranks by yield first.¹⁹ Some picks pay out about three-quarters of their earnings.
• The Motley Fool's November 2026 piece picks three healthcare stocks.²⁰ It gives free cash flow payout ratios but no method for calling them cheap.

What we did differently: one stated method, prices from yesterday, payout ratios checked against SEC filings, and the names we rejected.

Before you buy any of these

• Read the latest filing. Every company here files with the SEC. You can search them free on SEC EDGAR.
• Check the payout yourself. Our dividend calculator shows any stock's payout history and how safe it looks.
• Prefer a fund? A single dividend fund does the spreading for you. Read our honest SCHD guide.
• Do not put it all in one stock. Even safe-looking dividends get cut. The SEC's investor site explains the basics of owning stocks.

This is education, not advice to buy or sell. Prices and dividends change every day.

Questions

What makes a dividend stock undervalued?

Its price is low compared with what the business earns and the cash it produces. We check price against profit and free cash flow. A high yield alone does not count. Often a high yield just means the price fell for a good reason.

What is a safe payout ratio?

For most companies, under about 60% to 70% of profit leaves room for a bad year. Over 100% means the company pays out more than it earns. That cannot last unless profit recovers. Always check free cash flow too.

Why are so many undervalued dividend stocks in oil and gas?

Energy companies earn a lot when prices are high. Investors expect those profits to fall, so they pay less for them. That makes the shares look cheap on today's numbers. The risk is that profits really do fall.

Is a 10% dividend yield a good thing?

Usually not. A yield that high often means investors expect a cut. Two of the highest yielders in our screen paid out more than they earned. Look at the payout ratio before the yield.

How often is this list updated?

Our screen reruns every night from SEC filings. The nine picks above reflect 3 November 2026. See the full live list for tonight's names.

Should I buy a dividend fund instead?

If you want income without picking stocks, a fund is simpler. It holds about 100 companies, so one cut barely matters. Our SCHD guide covers the most popular one.

Related reading

New to this? Start with how to find undervalued stocks. For what a P/E ratio really tells you, read what is a good P/E ratio. To turn dividends into a monthly income, see how to live off dividends. For the fund route, read our SCHD guide. More plain-English guides are in the Hub.