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Published on September 30th, 2025 by Bob Ciura<\/em><\/p>\n The S&P 500 has been historically overvalued (in hindsight) non-stop since 2010<\/em> using the Shiller P\/E ratio.<\/p>\n The Shiller P\/E ratio employs a 10-year average of earnings to smooth out results, making it relevant during periods when earnings may temporarily turn negative, such as during recessions.<\/p>\n Historically, the average Shiller P\/E ratio stands at 17.3, while it currently sits at 40.0<\/a>. This indicates that the S&P 500 is 131% overvalued<\/em><\/strong> according to this metric.<\/p>\n In times of overvaluation, investors are encouraged to seek quality dividend growth stocks, especially those that are undervalued.<\/p>\n For instance, the free high dividend stocks list<\/a> provides a comprehensive spreadsheet of individual securities (stocks, REITs, MLPs, etc.) boasting 5%+ dividend yields<\/strong>.<\/p>\n Fortunately, numerous strong dividend stocks remain reasonably valued. The following article ranks 10 U.S.-based dividend stocks currently trading at or below the Shiller P\/E of 17.3. Each stock has a Dividend Risk Score of \u2018C\u2019 or better in the Sure Analysis Research Database, and offers dividend yields exceeding 2%. The list is organized by expected annual returns over the next five years, from lowest to highest.<\/p>\n Becton, Dickinson & Co. is a global leader in the medical supply industry, founded in 1897 and employing 75,000 people across 190 countries. The company generates approximately $20 billion in annual revenue, with 43% coming from international markets.<\/p>\n BD operates through three segments: Medical, Life Sciences, and Intervention. The Medical Division offers products like needles and surgical blades, while the Life Sciences division focuses on diagnostic specimen collection. The Intervention segment includes products from the former Bard company.<\/p>\n On August 7th, 2025, BD reported a 10.4% revenue increase to $5.5 billion for Q3 FY2025, exceeding expectations. Adjusted earnings-per-share rose to $3.68, surpassing last year’s $3.50 and beating forecasts by $0.28.<\/p>\n Management reaffirmed its revenue outlook for FY2025, projecting between $21.8 billion and $21.9 billion.<\/p>\n Click here to download our most recent Sure Analysis report on BDX<\/strong><\/a><\/p>\n KBR is a global technology and engineering solutions provider focused on defense, aerospace, and sustainable energy projects. The company operates in two segments: Mission Technology Solutions and Sustainable Technology Solutions, employing around 35,000 people across 29 countries.<\/p>\n On July 31st, 2025, KBR reported Q2 2025 results, with net income of $73 million, down from $106 million in Q2 2024. Quarterly net sales reached $1.95 billion, a 6% year-over-year increase.<\/p>\n Management expects full-year 2025 revenue between $7.9 billion and $8.1 billion, indicating potential for growth.<\/p>\n Click here to download our most recent Sure Analysis report on KBR<\/strong><\/a><\/p>\n Sonoco Products specializes in packaging and supply chain services across various industries, generating over $5 billion in annual sales. The company recently raised its quarterly dividend by 1.9%, marking 49 consecutive years of dividend growth.<\/p>\n In Q2 2025, Sonoco reported revenue growth of 17.9% to $1.91 billion, driven by strong performance in Consumer Packaging.<\/p>\n Click here to download our most recent Sure Analysis report on Sonoco (SON)<\/strong><\/a><\/p>\n AES Corporation operates in 14 countries, generating power through various fuel types. The company reported a 34% increase in adjusted EPS for Q2 2025, beating analyst estimates.<\/p>\n AES expects to add 3.2 GW of new projects in operation by the end of 2025, maintaining its guidance for adjusted EPS growth.<\/p>\n Click here to download our most recent Sure Analysis report on AES<\/strong><\/a><\/p>\n Westlake Corporation manufactures petrochemicals and building products. Despite facing challenges in Q2 2025, including a net loss due to facility closures, the company reported strong sales growth in its Housing and Infrastructure segment.<\/p>\n Click here to download our most recent Sure Analysis report on WLK<\/strong><\/a><\/p>\n H2O America, formerly SJW Group, provides water utility services across several states. The company recently acquired Quadvest, expanding its presence in the Houston area.<\/p>\n In Q2 2025, H2O America reported a 12.5% revenue increase, exceeding expectations.<\/p>\n Click here to download our most recent Sure Analysis report on HTO<\/strong><\/a><\/p>\n FactSet Research Systems provides financial data and analytics to the investment community. The company reported a 5.9% revenue increase in Q3 2025, driven by strong demand from clients.<\/p>\n FactSet continues to return value to shareholders through share repurchases and consistent dividend increases.<\/p>\n Click here to download our most recent Sure Analysis report on FDS<\/strong><\/a><\/p>\n Shutterstock sells high-quality creative content through its global platform. The company recently announced a merger with Getty Images, which is expected to enhance its market position.<\/p>\n In Q2 2025, Shutterstock reported a 21% revenue growth, surpassing analyst estimates.<\/p>\nTable of Contents<\/strong><\/h3>\n
Bargain Dividend Stock #10: Becton, Dickinson & Co. (BDX)<\/strong><\/h3>\n
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Bargain Dividend Stock #9: KBR, Inc. (KBR)<\/strong><\/h3>\n
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Bargain Dividend Stock #8: Sonoco Products (SON)<\/strong><\/h3>\n
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Bargain Dividend Stock #7: AES Corp. (AES)<\/strong><\/h3>\n
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Bargain Dividend Stock #6: Westlake Corporation (WLK)<\/strong><\/h3>\n
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Bargain Dividend Stock #5: H2O America (HTO)<\/strong><\/h3>\n
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Bargain Dividend Stock #4: FactSet Research Systems (FDS)<\/strong><\/h3>\n
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Bargain Dividend Stock #3: Shutterstock, Inc. (SSTK)<\/strong><\/h3>\n
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