3 Undervalued Dividend Stocks Yielding Over 4%

The S&P 500 is off to a good start to 2026, up 11% year-to-date. But with the S&P 500 P/E ratio above 30, stocks may be overvalued right now.

Stocks with low P/E ratios can offer attractive returns if their valuation multiples expand. And when a low P/E stock also has a high dividend yield, investors get ‘paid to wait’ for the valuation multiple to increase.

In this article, we will discuss 3 undervalued high dividend stocks with yields above 4%, making them potentially appealing for value and income investors.

Sonoco Products (SON)

Sonoco Products provides packaging, industrial products and supply chain services to its customers. The markets that use the company’s products include those in the appliances, electronics, beverage, construction and food industries.

The company generates $7.5 billion in annual sales. Sonoco Products is composed of 2 major segments, Consumer Packaging, and Industrial Packaging.

Sonoco Products has an impressive dividend growth streak of 50 consecutive years. On April 21st, 2026, Sonoco Products reported first quarter results for the period ending March 29th, 2026. For the quarter, revenue declined 1.8% to $1.68 billion, which was $30 million less than expected. Adjusted earnings-per-share of $1.20 compared to $1.38 in the prior year, but this matched estimates.

The company has now lapped the comparable periods prior to the addition of Eviosys. For the quarter, Consumer Packaging revenues were higher by 2.9% to $1.10 billion as price increases offset weaker volumes and inflation and tariff pressures. Sales for Industrial Paper Packing were down 1.4% $579 million as higher prices were offset by lower volume and mix. 

Sonoco Products provided an updated outlook for 2026 as well, with the company now expecting adjusted earnings-per share results near the low end of its prior range of $5.80 to $6.20 for the year. The company has grown earnings-per-share at a rate of 8.6% since 2016.

Over the past decade the company has averaged a 45% dividend payout ratio, but it is projected to be much lower than that this year. Sonoco Products has a very reasonable dividend payout ratio of 37% based off company expectations for 2026. SON stock currently yields 4.5%.

HNI Corporation (HNI)

HNI Corporation was founded in 1944 as an office furniture manufacturer. The company has a full array of hearth products including fireplaces, inserts and stoves. HNI generates more than $6 billion in annual revenue.

On May 6th, 2026, HNI reported first quarter results for the period ending April 4th, 2026. For the quarter, revenue was up 125.1% to $1.35 billion, but this was $20 million below estimates. Adjusted earnings-per-share of $0.34 compared unfavorably to $0.44 in the prior year, but this was $0.05 above expectations.

For the quarter, revenue for the Workplace Furnishings surged 169% to $1.19 billion, with much of this growth coming from the addition of Steelcase (SCS). Organic sales were down 5.2% for the period.

Residential Building Products generated revenue of $162.1 million, which was a 2.1% improvement from the prior year. Gains in remodel-retrofit were offset by a weaker new home market. Synergies from Steelcase acquisition is expected to add $1.20 to adjusted EPS when fully mature, with a moderate accretion projected to take place in 2026.

Since 2016, EPS has a compound annual growth rate of 3.1%. This growth rate accelerates to 19.7% when looking at just the last five years, though much of this increase has occurred in the last few years. HNI’s competitive advantage is its scale in the furniture business, as well as its long operating history and track record with customers.

HNI has increased its dividend for 14 consecutive years. The stock currently yields 4.5%.

Portland General Electric (POR)

Portland General Electric is an electric utility based in Portland, Oregon, providing electricity to more than 950,000 customers in 51 cities. The company owns or contracts more than 3.5 gigawatts of energy generation, between gas, coal, wind & solar, and hydro. POR has nearly 3,000 full-time employees. In 2025, the corporation generated $3.6 billion in revenue.

The utility company is diversified by customer, with 34% of retail deliveries going to residential customers, 31% to commercial clients, and 35% to industrial clients. In July 2025, Portland General submitted an application to OPUC for approval to reorganize into a holding company. On April 24th, 2026, Portland General Electric announced a 5% increase in the quarterly dividend to $0.5513 per share.

Portland General reported Q1 2026 results on May 1st, 2026. The company reported net income of $45 million for the quarter, equal to $0.38 per diluted share on a GAAP basis, compared to $0.91 in Q1 2025. Adjusted EPS was $0.58. During the quarter, commercial, and residential deliveries declined by 2.3% and 6.2% over the prior-year period, respectively. Meanwhile, industrial energy deliveries jumped 9.3%.

Future growth is likely from customer acquisition. On February 17th, 2026, Portland General announced its acquisition of PacifiCorp’s Washington state operations for $1.9 billion, expanding into Washington, and increasing its total client base by approximately 140,000 customers. It is partnering with Manulife Infrastructure Fund III, L.P and its affiliates, who will own minority stakes. The transaction is expected to close in 2027.

Portland General’s payout ratio has remained within or below its target payout ratio of 60% to 70% for most of the last decade. POR stock currently yields 4.6%.