Increased dividend rates on underpriced American stocks, reaching up to 9.75%: Enjoy high dividends alongside low price-to-per-share ratios
In the world of stock investments, finding undervalued companies with high dividend yields and low P/E ratios is a sought-after goal for many investors. Let's take a closer look at several US stocks that fit this criteria, as well as some notable mentions that didn't quite make the cut.
General Motors, Walgreens, United Airlines, Ford Motor, Devon Energy:
These companies have been in the spotlight for various reasons, but as of August 2025, they do not appear prominently in the recent lists of undervalued US stocks with both high dividend yields and low P/E ratios. This could be due to their current valuations and yields not meeting the criteria of high yield plus low P/E simultaneously, or they may not be considered undervalued high dividend stocks by the sources at this time.
Enterprise Products Partners (EPD):
One stock that stands out is Enterprise Products Partners (EPD), a company with a dividend yield of 6.8%, one of the highest in the S&P 500. EPD's revenue model is fee-based, with 85% of earnings tied to long-term contracts. In Q2 2025, their distributable cash flow rose 7% year-over-year to $1.9 billion. The stock is trading about 10% below its 52-week high, signaling undervaluation. Insiders have made $1 million in share purchases recently, reflecting confidence in the company's future. The energy sector's steady demand and a strong balance sheet (57% payout ratio) forecast compelling income returns.
Bristol-Myers Squibb (BMY) and Apache Corporation (APA):
Another notable mention is Bristol-Myers Squibb (BMY), a leading pharmaceutical company with a P/E ratio of 6.6 and strong dividend prospects. Apache Corporation (APA), an oil and gas producer, restored dividends in 2023, with production growth and earnings-per-share up 34% in Q1 2025. Historically, APA had a substantial dividend cut but now has a high yield.
ExxonMobil (XOM) and Gladstone Land (LAND):
ExxonMobil (XOM) yields around 3.5% and trades about 17% below its Morningstar fair value estimate, indicating undervaluation with resilient dividend aristocrat credentials. Gladstone Land (LAND), a REIT with a 6.3% yield, has a stable lease revenue model, though its dividend safety score is riskier.
Other Notable Mentions:
- The United Airlines stock has gained 78% this year, but it does not pay a dividend.
- Ford Motor stock has a dividend yield of 6.63% and has lost 9.2% this year. The company's P/E ratio for 2025 is not specified.
- The United Airlines stock has a low P/E ratio of 6.2.
- Walgreens stock has fallen by 59.16% this year, but it may be forming a bottom, a potential point of interest for speculative investors. Walgreens stock has a dividend yield of 9.75% and a P/E ratio of 6.4 for 2025.
In conclusion, while General Motors, Walgreens, United Airlines, Ford Motor, and Devon Energy are notable for various reasons, current data as of August 2025 emphasizes stocks like Enterprise Products Partners, Bristol-Myers Squibb, ExxonMobil, Apache Corp, and Gladstone Land as better fits for undervalued US stocks with high dividend yields and low P/E ratios and stronger recent performance indicators.
If detailed valuation or dividend yield data on the initially queried stocks for 2025 becomes available, they could be reassessed accordingly. For now, energy (especially midstream and integrated oil) and pharma sectors show the most compelling undervalued high-yield opportunities this year.
Investing in stocks such as Enterprise Products Partners, Bristol-Myers Squibb, ExxonMobil, Apache Corporation, and Gladstone Land could be appealing due to their undervalued status, high dividend yields, and low P/E ratios. On the other hand, General Motors, Walgreens, United Airlines, Ford Motor, and Devon Energy, while having potential in other areas, may not meet the criteria of undervalued high dividend stocks as of August 2025, according to the current data analyzed.
