These undervalued dividend stocks are poised for a rebound, according to Wall Street

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Investors looking for income along with potential capital appreciation may want to look at underperforming dividend stocks.

Investors looking for income along with potential capital appreciation may want to check out a few underperforming dividend stocks. Thanks to high interest rates, investors have had a plethora of options to earn some income. Bond yields popped in 2023 amid the Federal Reserve's interest rate hikes. The 10-year Treasury is yielding above 4%, and shorter-term bills of one year and less have rates over 5%.

Pro looked for stocks in the S & P 1500 that have raised their payout within the past year. They have also grown their dividends in at least four of the last five years. To find those that are undervalued, screened for names that are underperforming the S & P 500, with a forward price-earnings ratio of less than 21. At least 51% of analysts covering these stocks rate them a buy or overweight, and the names have at least 10% upside to the average price target, according to FactSet. Here are those stocks: Mondelez currently has a 2.4% dividend yield and 20% upside to the average price target. Nearly 90% of the analysts covering the stock rate it a buy or overweight.

in February, CEO Dirk Van de Put said that consumers in the U.S. and Europe are also being careful with their spending. In an effort to keep prices steady in the inflationary environment, the company often reduces the package sizes, he said. "People these days understand that they have to be careful the way they shop, but they don't want to pull back on snacking," he said on " Squawk on the Street ." Shares are down about 4% year to date.

in January. "We have seen a number of our competitors disappear, literally, and we have seen a number of them be acquired," he said in an interview with " Money Movers ." "The reality is the market-share landscape has shifted to our favor over this past year." Shares are up about 9% year to date.

 

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