Updated on October 9th, 2025 by Bob Ciura
Investing in stocks with low price-to-earnings (P/E) ratios can yield attractive returns, especially when these stocks also offer high dividend yields. A low P/E ratio indicates that a stock may be undervalued, and when combined with a high dividend yield, it allows investors to earn income while waiting for the stock’s valuation to increase.
We define a high-yield stock as one with a current dividend yield of 5% or higher. Below is a free high dividend stocks list that includes individual securities (stocks, REITs, MLPs, etc.) with 5%+ dividend yields. You can download a free copy by clicking on the link below:
In this research report, we explore the prospects of 20 undervalued high dividend stocks, all currently trading at P/E ratios under 10 and offering dividend yields above 5.0%. International stocks have been excluded from this analysis.
The stocks are ranked by P/E ratio, from lowest to highest. For REITs, we substitute P/FFO for the P/E ratio, and for MLPs, we use P/DCF (distributable cash flows). These metrics are comparable to earnings for common stocks.
It’s important to note that these 20 dividend stocks have not been screened for dividend safety. Instead, they represent the most undervalued stocks in the Sure Analysis Research Database with high dividend yields.
Table of Contents
Continue reading for detailed analysis on these 20 undervalued high dividend stocks.
Undervalued High Dividend Stock #1: Shutterstock, Inc. (SSTK) – P/E ratio of 4.9
Shutterstock provides high-quality creative content for brands and marketing companies through its global platform, boasting an extensive collection of 3D models, videos, music, and photographs. The company reported $935 million in revenues last year.
On January 7th, 2025, Shutterstock announced a merger agreement with Getty Images, creating a combined entity named Getty Images Holdings, Inc. The merger is expected to generate revenues between $1.979 billion and $1.993 billion.
Shutterstock’s second quarter results for 2025 showed a 21% year-on-year revenue growth, surpassing analyst estimates. Adjusted EPS increased by 19% to $1.19.
Click here to download our most recent Sure Analysis report on SSTK
Undervalued High Dividend Stock #2: NewtekOne Inc. (NEWT) – P/E ratio of 4.9
NewtekOne transitioned from a business development company to a financial holding company in January 2023, focusing on traditional banking services and business solutions. The company generated $81.1 million in net interest income last year.
In its Q2 results for 2025, Newtek reported a net income of $13.7 million, a 21% increase from the previous year. Total assets reached $2.13 billion, with loans held for investment growing by 22.6%.
Click here to download our most recent Sure Analysis report on NEWT
Undervalued High Dividend Stock #3: Petrus Resources (PTRUF) – P/E ratio of 5.0
Petrus Resources is a Canadian oil and gas producer focused on low-cost, liquids-rich natural gas and light oil assets. The company reported revenues of approximately $21.8 million in Q1 2025.
Despite a decline in realized prices, Petrus achieved $9.7 million in adjusted funds flow, translating to $0.09 per diluted share.
Click here to download our most recent Sure Analysis report on PTRUF
Undervalued High Dividend Stock #4: ARMOUR Residential REIT (ARR) – P/E ratio of 5.0
ARMOUR Residential invests in residential mortgage-backed securities, including those backed by U.S. Government-sponsored entities. In Q2 2025, ARMOUR reported a GAAP net loss of $78.6 million.
Despite this, distributable earnings were slightly up, and the company raised $104.6 million through share issuance.
Click here to download our most recent Sure Analysis report on ARMOUR Residential REIT Inc (ARR)
Undervalued High Dividend Stock #5: Sunoco LP (SUN) – P/E ratio of 5.4
Sunoco is a master limited partnership that distributes fuel products and operates in adjacent industries. The company reported revenues of $5.39 billion in Q2 2025, a 13% decline from the previous year.
Despite lower revenues, adjusted EBITDA increased by 42% year-on-year, demonstrating strong cash flow generation.
Click here to download our most recent Sure Analysis report on SUN
Undervalued High Dividend Stock #6: Oxford Square Capital (OSXQ) – P/E ratio of 5.5
Oxford Square Capital specializes in financing early- and middle-stage businesses. The company reported a total investment income of $9.5 million in Q2 2025, down from the previous year.
Net investment income came in at $5.5 million, reflecting a decrease from the prior year.
Click here to download our most recent Sure Analysis report on OXSQ
Undervalued High Dividend Stock #7: Horizon Technology Finance (HRZN) – P/E ratio of 5.5
Horizon Technology Finance provides venture capital to small and medium-sized companies in technology and healthcare sectors. The company reported total investment income of $24.5 million in Q2 2025.
Net investment income per share fell to $0.28, down from $0.36 in the previous year.
Click here to download our most recent Sure Analysis report on HRZN
Undervalued High Dividend Stock #8: Ellington Credit Co. (EARN) – P/E ratio of 5.6
Ellington Credit invests in residential mortgage and real estate-related assets. The company reported net income of $10.2 million for Q1 2025.
Adjusted net investment income was $6.6 million, reflecting a solid cash position.
Click here to download our most recent Sure Analysis report on EARN
Undervalued High Dividend Stock #9: Plains All American Pipeline LP (PAA) – P/E ratio of 6.2
Plains All American Pipeline is a midstream energy infrastructure provider, handling over 7 million barrels per day. The company reported revenues of $10.6 billion in Q2 2025.
Adjusted EBITDA totaled $812 million, reflecting stable operations despite lower commodity prices.
Click here to download our most recent Sure Analysis report on PAA
Undervalued High Dividend Stock #10: Prospect Capital (PSEC) – P/E ratio of 6.2
Prospect Capital provides private debt and equity to middle-market companies. The company reported a net interest income of 17 cents per share in Q4 2025, down from 25 cents the previous year.
Total revenue fell by 21% year-over-year, reflecting ongoing challenges.
Click here to download our most recent Sure Analysis report on PSEC
Undervalued High Dividend Stock #11: Energy Transfer LP (ET) – P/E ratio of 6.2
Energy Transfer operates a diversified portfolio of energy assets across the U.S. The company reported a 3% growth in adjusted EBITDA in Q2 2025.
Energy Transfer raised its quarterly distribution, continuing a trend of consistent increases.
Click here to download our most recent Sure Analysis report on ET
Undervalued High Dividend Stock #12: AGNC Investment Corporation (AGNC) – P/E ratio of 6.4
AGNC is a mortgage REIT investing primarily in agency mortgage-backed securities. The company reported a comprehensive loss of $0.13 per share in Q2 2025.
Despite challenges, AGNC’s investment portfolio remains substantial, totaling $82.3 billion.
Click here to download our most recent Sure Analysis report on AGNC Investment Corp (AGNC)
Undervalued High Dividend Stock #13: DENTSPLY Sirona (XRAY) – P/E ratio of 6.5
Dentsply Sirona manufactures dental products and technologies. The company reported a revenue decrease of 4.9% in Q2 2025, but adjusted EPS improved to $0.52.
Despite challenges in several segments, the gross profit margin expanded, indicating operational efficiency.
Click here to download our most recent Sure Analysis report on XRAY
Undervalued High Dividend Stock #14: Canandaigua National Corporation (CNND) – P/E ratio of 6.8
Canandaigua National Corporation offers a wide range of financial services through its banking subsidiaries. The company reported a 36% increase in net income for the first half of 2025.
With total deposits of $4.16 billion, CNND continues to focus on community banking.
Click here to download our most recent Sure Analysis report on CNND
Undervalued High Dividend Stock #15: Bristol-Myers Squibb (BMY) – P/E ratio of 6.9
Bristol-Myers Squibb is a leading pharmaceutical company with annual revenues of about $46 billion. The company reported a slight revenue increase in Q2 2025, although adjusted EPS fell to $1.46.
Despite challenges, the company continues to show strong performance in key therapeutic areas.
Click here to download our most recent Sure Analysis report on BMY
Undervalued High Dividend Stock #16: Perrigo plc (PRGO) – P/E ratio of 7.1
Perrigo operates in the healthcare sector, manufacturing over-the-counter consumer products. The company reported a slight revenue decline in Q2 2025, but adjusted EPS improved to $0.57.
Perrigo remains focused on organic growth despite challenges in certain product lines.
Click here to download our most recent Sure Analysis report on PRGO
Undervalued High Dividend Stock #17: Geopark Limited (GPRK) – P/E ratio of 7.2
GeoPark explores and produces oil and natural gas in Latin America. The company reported a decrease in average daily production in Q2 2025, resulting in a loss per share of -$0.20.
Despite its challenges, GeoPark maintains a competitive edge with low operating costs.
Click here to download our most recent Sure Analysis report on GPRK
Undervalued High Dividend Stock #18: Apple Hospitality REIT (APLE) – P/E ratio of 7.3
Apple Hospitality REIT owns a portfolio of hotels across the U.S. The company reported total revenue of $384.4 million in Q2 2025, reflecting a slight year-over-year decline.
Despite this, profitability remains solid, with effective cost controls in place.
Click here to download our most recent Sure Analysis report on APLE
Undervalued High Dividend Stock #19: Midland States Bancorp (MSBI) – P/E ratio of 7.4
Midland States Bancorp operates community banks in Illinois and Missouri. The company reported a decrease in earnings per share due to increased provisions for loan losses.
Despite challenges, the bank continues to expand its net interest margin.
Click here to download our most recent Sure Analysis report on MSBI
Undervalued High Dividend Stock #20: Prudential Financial (PRU) – P/E ratio of 7.5
Prudential Financial operates globally, providing a range of financial products. The company reported a net income of $533 million in Q2 2025, with assets under management totaling $1.58 trillion.
Prudential continues to focus on share repurchases and maintaining strong financial performance.
Click here to download our most recent Sure Analysis report on PRU
All the stocks mentioned above are trading at attractive valuation levels, presenting potential opportunities for investors. While some face challenges due to economic conditions, their high dividend yields make them appealing options for those willing to wait for recovery.
If you’re interested in exploring high-quality dividend growth stocks or other high-yield securities, the following Sure Dividend resources will be beneficial:
High-Yield Individual Security Research
Other Sure Dividend Resources
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