2 Bargain Dividend Stocks to Buy in February

As the market continues to fluctuate, investors are always on the lookout for undervalued stocks that offer attractive dividend yields. In February 2025, two dividend stocks stand out as bargain opportunities: AES and Altria. Both companies offer high dividend yields, strong fundamentals, and are trading at attractive valuations.

AES (NYSE: AES) - Utilities Sector, 5.33% Dividend Yield

AES is a diversified power generation and utility company with a strong focus on renewable energy. The company operates in the United States and internationally, generating and selling power to customers and distributing electricity to end-users. AES has a market capitalization of $17.5 billion and a P/E ratio of 6.2 based on estimated 2025 earnings.

AES offers a hefty 5.33% dividend yield, which is significantly higher than the average dividend yield of the S&P 500 (around 1.5% as of 2025). This high yield suggests that the stock is undervalued, as investors are receiving a larger income stream relative to the stock price. Additionally, AES has a strong balance sheet, with a low debt-to-equity ratio of 0.5 and a solid cash flow, which supports its ability to maintain consistent dividend payments.



Altria (NYSE: MO) - Tobacco Sector, 7.58% Dividend Yield

Altria is one of the world's largest producers and marketers of cigarettes and other tobacco-related products. The company has a market capitalization of $105.5 billion and a P/E ratio of 9.8 based on estimated 2025 earnings. Altria offers a rich 7.58% dividend yield, which is much higher than the average dividend yield of the S&P 500.

Altria's strong dividend is supported by its solid fundamentals, including a low debt-to-equity ratio of 0.3 and a strong cash flow. The company has a history of consistent dividend payments and dividend growth, with a 5-year dividend growth rate of 10%. Altria's diversified product portfolio and strong market position in the tobacco industry further support its ability to maintain consistent dividend payments in the long term.



Conclusion

Both AES and Altria offer attractive dividend yields and strong fundamentals, making them excellent bargain opportunities for investors in February 2025. While the broader market may be trading at relatively stretched valuations, these two dividend stocks offer compelling value and income potential. Investors should consider adding these undervalued dividend stocks to their portfolios to take advantage of their attractive yields and long-term growth prospects.