Value equities are viewed as the most effective hedge against rising inflation by 35% of investors. In February, value equities outperformed growth stocks by ten percentage points. Investors should avoid pursuing growth equities and tech behemoths, according to Savita Subramanian of BoFA. Instead, she advised investors to seek out high-quality value stocks. Investors are seeking better yield returns from their investment portfolios as interest rates rise. The increase in corporate earnings and profits in 2021 has resulted in higher dividend distributions and growth. In current market, value bets are preferred, so we’ll be looking for undervalued dividend stocks to buy in 2022.
Insider Monkey selected dividend stocks that have a price to earnings ratio under 20. Alliance Resource Partners, L.P. is a natural resource firm established in Oklahoma that specializes in coal mining and sales to utilities and industrial users. With a price-to-earnings ratio of 11.86, the company is a significant undervalued dividend player in 2022. As of April 1, Eagle Bulk Shipping Inc. has a dividend yield of 11.83 percent. In 2021, the company reported a net income of around $185 million, a significant improvement over the previous year’s net loss of $35.1 million. Big 5 Sporting Goods Corporation is a sporting goods company based in California that sells products for sports, fitness, camping, hunting, and home recreation. On March 1, the company announced its fourth-quarter earnings, which exceeded expectations by $3.91 million. As of April 1, the stock yielded 8.60 percent in dividends. British American Tobacco P.l.c. is one of the most undervalued dividend stocks to purchase in 2022, with a price to earnings ratio of 10.90. Guess’, Inc. declared a quarterly dividend of $0.225 per share on March 16. The dividend will be paid on April 15 to stockholders who were registered on March 30. On March 21, the company also announced a $175 million share repurchase program. For more details, click 10 Undervalued Dividend Stocks To Buy In 2022.