Entering text into the input field will update the search result below

Top 10 Undervalued High-Yield Income Stocks For Q2

Apr. 02, 2021 8:15 AM ETABBV, BNTX, CGBD, CNQ, ENB, JNJ, LMT, MPW, MRK, NOBL, O, OFS, PFE, ENB:CA, CNQ:CA162 Comments


  • Sometimes, it may seem like growth and momentum investing is the way to go, but in the long run, a focus on value and income stocks is a winning strategy.
  • Not all income stocks are necessarily attractive at a certain point - one should consider valuation before making an investment.
  • We share 10 attractively priced income picks that offer market-beating dividend yields and upside potential at the same time.
  • Looking for more investing ideas like this one? Get them exclusively at Cash Flow Kingdom. Learn More »

Top 10
Photo by Kameleon007/iStock via Getty Images

Article Thesis

Markets have had a great year beginning at the nadir last spring. However, not everything is overvalued and too expensive, there are still attractive deals to be made. In this article, we will explain why dividend

Is This an Income Stream Which Induces Fear?

image.pngThe primary goal of the Cash Flow Kingdom Income Portfolio is to produce an overall yield in the 7% - 10% range. We accomplish this by combining several different income streams to form an attractive, steady portfolio payout. The portfolio's price can fluctuate, but the income stream remains consistent. Start your free two-week trial today!

This article was written by

Jonathan Weber profile picture

Jonathan Weber holds an engineering degree and has been active in the stock market and as a freelance analyst for many years. He has been sharing his research on Seeking Alpha since 2014. Jonathan’s primary focus is on value and income stocks but he covers growth occasionally.

He is a contributing author for the investing group Cash Flow Club where along with Darren McCammon, they focus on company cash flows and their access to capital. Core features include: access to the leader’s personal income portfolio targeting 6%+ yield, community chat, the “Best Opportunities” List, coverage of energy midstream, commercial mREITs, BDCs, and shipping sectors,, and transparency on performance. Learn More.

Analyst’s Disclosure: I am/we are long ABBV, MRK, MPW, O, ENB, CGBD, JNJ, LMT, CNQ. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

Comments (162)

Most Pharma are undervalued. Very low PEs and yields over 3%. PFE, GILD and ABBV yield over 4%.
CincinnatiRick profile picture
$OFS an audacious choice, getting almost zero attention. If it can get back where it was pre-COVID, it's a steal. I like these firms where they eat their own cooking and this looks to be a very reasonable speculation in this overheated market...hard to find places to put money to work.
BAHAMAS1 profile picture
Thanks for the article.

Long ABBV and LMT which, imo, are 2 of the best on your list.
whiplash542 profile picture
Good article, but the author should have mentioned that the dividends from the 2 Canadian stocks are subject to the Canadian Interest Equalization Tax unless they in a tax sheltered account like an IRA. I understand there is a process to get it reversed but people say it’s a nuisance.
Jonathan Weber profile picture
@whiplash542 Thanks very much! True, tax considerations play a role when making investments in Canadian and other offshore companies
04 Apr. 2021
I need more money.
Jonathan Weber profile picture

These stock ideas might help you with that!
I'm a bit apprehensive as I prefer being a contrarian. Long 6 of the ten listed....ENB, MRK, ABBV, CGBD, LMT and O. I also agree with a commenter who mentioned AVGO which is a substantial position of mine. Final comments -- long T as a reasonable bond proxy; don't expect too much upside but my position is at a level tat shows substantial long term downside support. And -- there are better BDCs out there with reasonable valuations and yield. Long ARCC and NEWT (both of which are fully priced here) as well as GSBD and CSWC.
Jonathan Weber profile picture

Thanks for sharing. We recommended newt in the past
birder 4000 profile picture
You and I are on pretty much the same page. ENB, MRK, ABBV, MPW, O, and PFE. One that I like that is not on your list is WPC. I have actually been thinking of adding more MPW, O, and WPC.
Jonathan Weber profile picture
@birder 4000

I like wpc as well, good pick
Keep it Country profile picture
Good list. There is still a little value in the market. Also like CVS, BTI, MO WPC. Long 3 named on list MRK, ENB and O.
If you’re looking for a 3% dividend could AVGO work. I have O, MPW, ABBV and the 3 percenter I mentioned.
Jonathan Weber profile picture

Thanks! I like avgo as well
Sergi Medina profile picture
Long ABBV! Amazing company and nice dividend!
Realty Income too overvalued for me at this point...
DividendNow profile picture
Nice picks! Not too long ago LMT was at $319 which was a steal. If ABBV goes back to $100 or below I will purchase more.
Jonathan Weber profile picture
@JS Invest Glad you liked it! Happy investing!
Tredwise profile picture
Funny, you cover quite a number of the companies in my portfolio.
Jonathan Weber profile picture
@Tredwise Great minds think alike, haha!
Like this list
Am bookmarking
Thank You
Jonathan Weber profile picture
@bearcub1936 Thanks, glad you liked it!
toddkaz profile picture
Merck 3% yield. Really went out on a limb on that one.
Jonathan Weber profile picture
Haha, you don't like it?
toddkaz profile picture
@Jonathan Weber I like Merck but its not a high yielding stock. Come on there needs to be a cut off like 5%.

I like dividends as much as the next guy but at 3% there is much better plays out there.

How about MO, T or even XOM
Jonathan Weber profile picture
@toddkaz it is not an extremely high yield, true, but about twice as much as the broad market
Jonathan: always enjoy your articles. On BDC's Rida Morwa says they are best held in a taxable account not a Roth. Do you agree?
Jonathan Weber profile picture
Tbh I'm not a tax specialist, but I think they can be safely held in a retirement account
jakefountain profile picture
@Carolanne1 Where did Rida get his CPA license from lol?
@jakefountain Yeah! As a CPA I see some bad comments that make me scratch my head. There is no tax problem holding a BDC in a tax advantaged or tax free IRA.
Thank you so much Jonathan for wonderful and quality thought starters. I own 2 (ABBV And CGBD) for quite some time and will look at several of the 8 remaining stocks you shared with us.
Be well.
Jonathan Weber profile picture
@Shamu2 Thanks very much! Glad you liked it!
Marrk profile picture
Good article. Thanks for being direct.

Long four out of ten.
Jonathan Weber profile picture
@Marrk Glad you enjoyed it!
At this time there is absolutely no empirical evidence whatsoever to support the idea that dividend paying stocks make better investments than non dividend paying stocks.
fripp1 profile picture
@Vincent1966 except that we can count on the payouts for the most part. The only way to gat paid from a non-divy stock is to sell it. And who knows where the price might be at that time.
Jonathan Weber profile picture
@fripp1 That's true. If one depends on selling securities, there is a lot of risk in case prices decline, even if only temporarily
@fripp1 In a taxable account, collecting $100 in dividends results in tax owed on $100 of dividend income. Selling $100 worth of stock will almost never generate anything close to the same tax bill. You only pay tax on your gain in the shares sold.

Dividend growth investors who don't need all of the income recycle their dollars through the taxation system and end up with less.
16178052 profile picture
Hold all your stocks except the BDC's, O and CNQ. CNQ is extremely volatile stock so not for me.
Jonathan Weber profile picture
@16178052 Thanks for sharing with us!
Already long 5 of the 10. PFE, MRK, ABBV, ENB, and LMT.
Disagree with this article? Submit your own. To report a factual error in this article, . Your feedback matters to us!

Related Stocks

SymbolLast Price% Chg
AbbVie Inc.
BioNTech SE
Carlyle Secured Lending Inc.
Canadian Natural Resources Limited
Enbridge Inc.

Related Analysis

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.