Undervalued Finance Firms with High Dividend Yields: Lincoln National and Universal Insurance Holdings

This article highlights five undervalued dividend stocks in the finance sector that could be good buys as the market rally gets overextended. Lincoln National Corp. (LNC) and Universal Insurance Holdings Inc. (UVE) are two of the stocks mentioned, with LNC offering a 5.14% dividend yield and a Benzinga Edge Value Score of 96.76. The article also notes that while UVE has a lower dividend yield of 2.26%, it has a high Benzinga Edge Value Score of 94.27.

As the market rally continues to extend, investors are seeking undervalued dividend stocks that offer both growth and income potential. This article highlights five finance firms with high Benzinga Edge Value scores and steady dividend yields that could be attractive late bull market plays.

Lincoln National Corp. (LNC)

Lincoln National (NYSE:LNC), a $6 billion market cap firm based outside of Philadelphia, offers a variety of life insurance and retirement services. The company's stock has traded flat over the last five years but has gained more than 10% year-to-date. LNC offers a 5.14% dividend yield with a dividend payout ratio of 25%. Analysts rate the stock as a consensus "Hold," but three different firms have upped their price targets in July, including Wells Fargo and JPMorgan Chase. Lincoln National also received an $825 million cash infusion from Bain Capital, which now owns 9.9% of the company [1].

Universal Insurance Holdings Inc. (UVE)

Universal Insurance Holdings (NYSE:UVE) is a small-cap provider of personal residential insurance policies for owners and renters. Despite a market capitalization of just $647 million and a dividend history of only 18 months, UVE offers a 2.26% yield with a manageable payout ratio of 28%. The company released an earnings report on July 24, beating revenue expectations by nearly 35%. The stock sold off following the earnings beat, but this could be profit-taking following a 20% gain over the last 12 months [2].

Old Republic International Corp. (ORI)

Old Republic (NYSE:ORI) is a $8.9 billion market cap insurer that offers home and auto insurance for both commercial and private customers. ORI is a Dividend Aristocrat with a 45-year history of annual payout increases, currently yielding 3.2% with a dividend payout ratio of 39.7%. The company reported Q2 2025 earnings on July 24, beating expectations on both EPS and revenue, including impressive revenue growth of 10% year-over-year (YOY) [2].

Jeffries Financial Group Inc. (JEF)

Jeffries Financial Group (NYSE:JEF) is the first market maker on our list, offering investment banking services to clients across North America, Europe, and Asia. The stock has a market capitalization of $11.9 billion and pays a dividend yield of 2.78%, with a payout ratio of 60%. Jeffries missed EPS and revenue expectations during its Q2 2025 release back in June, but the stock may have finally found its bottom back in April. Shares have gained more than 22% between April and July [2].

The Hanover Insurance Group Inc. (THG)

The Hanover Insurance Group (NYSE:THG) pays the smallest yield of any stock on our list but has momentum. The company has raised its annual dividend payouts for 20 consecutive years, with a payout rate of just 30%. Hanover reports earnings on July 30, and analysts will be looking to see if the company can build on its previous EPS beat from Q1. The stock has been in an uptrend since a Golden Cross breakout in late 2023 [2].

These five finance firms offer undervalued opportunities for investors seeking steady dividends and potential growth as the market rally gets overextended. Investors should conduct thorough due diligence before making any investment decisions.

References:
[1] https://seekingalpha.com/news/4474564-lincoln-national-q2-2025-earnings-preview
[2] https://www.benzinga.com/Opinion/25/07/46703510/5-undervalued-dividend-stocks-to-buy-as-rally-gets-overextended