2 Dividend Stocks That Are Unbelievably Cheap

The article discusses finding cheap dividend stocks by using a chart to determine the value of the stock market. According to the author, when the value in the chart is high, it becomes more difficult to find bargain stocks worth buying. The article suggests that when the value is high, it may be a good time to look for undervalued dividend stocks that are "almost embarrassing" in their low prices.

In a stock market characterized by all-time high valuations, finding bargain dividend stocks can be challenging. According to Garrett Smith, the higher the value on the chart, the more difficult it becomes to locate undervalued opportunities worth buying. However, this challenging environment can also present unique opportunities for investors seeking cheap dividend stocks.

When the market is at its peak, it may be a good time to explore undervalued dividend stocks that are "almost embarrassing" in their low prices. These stocks can offer high yields that are more than double the market average, providing a potential for significant passive income streams.

Two notable dividend stocks that fit this criterion are Novo Nordisk (NVO) and UnitedHealth Group (UNH). Both companies have seen their stock prices drop significantly from their peak values, making their dividend yields more attractive.

Novo Nordisk, a Danish pharmaceutical company, has seen its stock price decline by 56% from its peak due to competition from compounding pharmacies and the performance of competing treatments. Despite this, the company has continued to raise its dividend payout, with the annual dividend increasing by 129% over the past five years. The company's lead drug, semaglutide, has shown strong sales growth, and the recent resolution of the semaglutide shortage should provide a boost to the company's sales. At current prices, Novo Nordisk is trading at a valuation that is appropriate for its growth prospects.

UnitedHealth Group, a major healthcare insurer, has seen its stock price drop by approximately 55% from its peak due to an underestimation of healthcare expense growth. Despite this, the company has managed to raise its dividend payout by 77% over the past five years. The company's Optum Health segment, which employs a significant portion of America's physicians, provides it with a competitive advantage in managing rising healthcare expenses. Although the company's earnings guidance has been revised, the dividend payments remain attractive.

Investing in these undervalued dividend stocks can provide a growing stream of passive income, even in a bull market. It is essential to conduct thorough research and consider the specific risks associated with each company before making investment decisions.

References:
[1] https://seekingalpha.com/article/4803112-these-2-dividend-stocks-are-so-cheap-its-almost-embarrassing
[2] https://www.marketscreener.com/news/albemarle-corporation-declares-quarterly-common-stock-dividend-payable-on-october-1-2025-ce7c5cddd081f220
[3] https://www.fool.com/investing/2025/07/22/2-beaten-down-dividend-growth-stocks-to-buy-now/
[4] https://www.investing.com/analysis/dividend-aristocrats-offer-shelter-as-core-inflation-holds-above-2-200664142