Overlooked dividend stocks are hidden gems.
They may not be widely discussed as other, more popular dividend stocks, but they offer compelling yields and a good deal of upside potential.
Plus, it never hurts to hold dividend stocks – especially when markets get uncontrollably volatile. Not only can they help protect your portfolio, but they can help generate healthy passive income along the way.
That being said, here are three overlooked dividend stocks you may want to consider.
American States Water (SYM: AWR)
With a yield of 2.67%, Dividend King, American States Water (SYM: AWR) provides water and electric services with a strong history of consistent dividend increases. In fact, it’s paid out a dividend every year since 1931. It also just paid a dividend of just over 50 cents per share, which was paid on March 5.
Recent earnings have been solid. EPS of $1.06 beat by six cents. Revenue of $182.7 million, up about 13% year over year, beat by $3.92 million.
Toll Brothers (SYM: TOL)
Toll Brothers (SYM: TOL) just paid a dividend of 25 cents on January 23.
Earnings were good here, too. EPS of $2.19 beat by seven cents. Revenue of $2.15 billion, up 15.6% year over year, beat by $290 million.
As noted by Douglas C. Yearley, Jr., chairman and CEO, “We delivered 1,899 homes at an average price of $977,000, generating home sales revenues of $1.85 billion. Our adjusted gross margin was 26.5% in the quarter, 25 basis points better than guidance, and our SG&A expense, as a percentage of homebuilding revenues, was 13.9%, 30 basis points better than guidance. As a result, we earned $2.19 per diluted share in the quarter, a 25% increase compared to the first quarter of fiscal 2025. In addition, we signed 2,303 net contracts for $2.4 billion in the quarter.”
Vanguard Dividend Appreciation ETF (SYM: VIG)
We can also look at ETFs such as the Vanguard Dividend Appreciation ETF (SYM: VIG), which just paid a dividend of just over 88 cents per share on December 24. Before that, it paid a dividend of just over 86 cents per share on October 1.
With an expense ratio of 0.05% and a monthly yield of 1.73%, the VIG is also an attractive opportunity that tracks the performance of the S&P U.S. Dividend Growers Index and invests in large-cap stocks with a record of dividend growth. Some of the VIG ETF’s 338 holdings include Apple, Microsoft, Broadcom, JPMorgan, Eli Lilly, Visa, Exxon Mobil, UnitedHealth Group, Mastercard and Costco Wholesale to name a few.
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Written by Ian Cooper