6 Undervalued Stocks That Just Raised Dividends

Plus: Best-Performing Undervalued Moat Stocks, Top Large Value ETFs, What to Watch in January CPI [Morningstar](?utm_source=eloqua&utm_medium=email&utm_campaign=newsletter_smartinvestor&utm_content=51792&elqTrackId=ccb3b8797e744c66bef77bf5fabab38c&elq=25ff9ca377804d20a131c9e98b5469c6&elqaid=51792&elqat=1&elqCampaignId=26001) [Smart Investor] Smart Investor [Tom Lauricella, chief markets editor]( Connect with Tom on [LinkedIn]( [Tom Lauricella] In this week's newsletter: - [6 Undervalued Stocks That Just Raised Dividends]( - [The 10 Best-Performing Undervalued Moat Stocks]( - [6 Top-Performing Large-Value ETFs]( - [Beyond the Magnificent Seven, These Wide-Moat Stocks Soar]( - [Forecasts for January CPI Report Point to Slow Progress In Inflation Fight]( - [The Best Types of Stocks to Buy in Today’s Fully Valued Market]( Markets are funny. From late last year into the start of 2024, stocks were rallying on expectations that the Federal Reserve would be cutting interest rates as soon as March. Now, Fed Chair Jerome Powell went so far as to go on TV – a very rare occurrence – to make clear that the central bank is in no hurry to lower rates. And stocks are hitting new highs. The bond market is still expecting the Fed to cut rates at the beginning of May. But much will hinge on this coming week’s Consumer Price Index report. A good report could keep the Fed on track to lower interest rates this spring, but a hot inflation reading could push any cuts back even further. We’ve got a look at what analysts think this [CPI report]( could have in store. (If you haven’t [checked out our story]( from a few weeks back about how everyone, including the Fed, is always wrong about the outlook for rates, it’s worth a read.) Meanwhile, the stock market continues to climb higher, and the popular perception is that it’s being led by the usual suspects: the Magnificent Seven. And sure, Nvidia is up another 40% so far this year. (Yes, 40%.) Meta is up 33%. But under the hood, there’s a broader group participating in the rally. They have what we at Morningstar call wide economic moats. [My new column]( explains and explores the rally in wide-moat stocks. This is happening amid a stock market that is currently fairly valued by Morningstar’s metrics, having rallied from undervalued territory. So where should you put new money to work? Morningstar chief U.S. strategist Dave Sekera [has his take]( on opportunities for investors. Meanwhile, we have a few screens for this week. In the first, continuing our coverage of dividend stocks, we looked for undervalued names that raised their payouts in January. [The list includes]( Yum Brands and Comcast. We also screened for [undervalued moat stocks]( that have been top performers, which includes the likes of Verizon. On the fund side of the fence, we screened for the best-performing large-value ETFs and [have six offerings]( for you. Lastly, as earnings season wraps up, we’ve got our outlooks for [Apple]( [Alphabet]( and [Microsoft](. Also, check out the [new page]( on Morningstar.com dedicated to our analysts’ company reports. As always, check out our [Markets page]( for our latest coverage and live stock market updates, along with our [weekly calendar]( of key upcoming data and events. Did a friend forward this email? [Sign up here](. [6 Undervalued Stocks That Just Raised Dividends]( [6 Undervalued Stocks That Just Raised Dividends]( Yum Brands and Comcast are among the stocks with higher payouts. Tom Lauricella [See Picks]( Share: [facebook]( [twitter]( [linkedin]( ADVERTISEMENT [media]( [media] Markets and the Economy [Beyond the Magnificent Seven, These Wide-Moat Stocks Soar]( [Beyond the Magnificent Seven, These Wide-Moat Stocks Soar]( High-quality stocks are leading the charge. Tom Lauricella [Forecasts for January CPI Report Point to Slow Progress In Inflation Fight]( [Forecasts for January CPI Report Point to Slow Progress In Inflation Fight]( Powell has signaled that the Fed is waiting for clearer signs on the outlook for inflation before cutting rates. Sarah Hansen [What’s Happening In the Markets This Week]( [What’s Happening In the Markets This Week]( CPI, PPI, and Coca-Cola earnings highlight the week ahead. Bella Albrecht [The 10 Best-Performing Undervalued Moat Stocks]( [The 10 Best-Performing Undervalued Moat Stocks]( Interactive Brokers and Verizon are among the recent top undervalued stocks with long-term competitive advantages. Diana Anghel [Markets Rallied at the End of 2023. How Do They Look Today?]( [Markets Rallied at the End of 2023. How Do They Look Today?]( 6 trends from the final quarter of 2023. Tony Thorn [3 Great Funds for an IRA for 2024]( [3 Great Funds for an IRA for 2024]( Three funds for three risk levels. Russel Kinnel [The Best Types of Stocks to Buy in Today’s Fully Valued Market]( [The Best Types of Stocks to Buy in Today’s Fully Valued Market]( Find investment opportunities in these overlooked parts of the stock market. David Sekera, Susan Dziubinski [3 Undervalued Stocks to Buy Before the Big Game]( [3 Undervalued Stocks to Buy Before the Big Game]( These game-day advertisers have cheap stocks that look like solid long-term investments. Susan Dziubinski [ETFs vs. Mutual Funds: The Benefits That Really Matter]( [ETFs vs. Mutual Funds: The Benefits That Really Matter]( How ETFs stack up against mutual funds on tradability, tax efficiency, transparency, accessibility, and fees. Bryan Armour [6 Top-Performing Large-Value ETFs]( [6 Top-Performing Large-Value ETFs]( Offerings from iShares, Vanguard, and SPDR top the list of the best funds in this category. Kumudini Devalla [The Best Active ETFs to Buy]( [The Best Active ETFs to Buy]( These actively managed exchange-traded funds earn high ratings from Morningstar in 2024. Susan Dziubinski [Bonds Are Still Too Expensive]( [Bonds Are Still Too Expensive]( Their relative yields have become acceptable, but that’s not the whole story. John Rekenthaler [Is There Really a Better Mousetrap for Retirement Income?]( [Is There Really a Better Mousetrap for Retirement Income?]( A new concept in risk pooling offers an alternative to annuities, at a price. Amy Arnott [Invesco’s Justin Leverenz: Emerging Markets Are ‘Incredibly Attractive’]( [Invesco’s Justin Leverenz: Emerging Markets Are ‘Incredibly Attractive’]( A veteran globe-trotting investor sees upside in an unloved asset class. Christine Benz, Dan Lefkovitz Chart of the Week [Could Private Equity Work in Workplace Plans?]( [Could Private Equity Work in Workplace Plans?]( Our research on private equity in large pension plans shows mixed results. Lia Mitchell [Read More]( Share: [facebook]( [twitter]( [linkedin]( Recent Earnings [Disney: Lots of Good, Especially for the Flashy Metrics, but Underlying Issues Remain]( [Palantir Stock Surges After Earnings as AI Sales Impress]( [CVS: Outlook Trimmed Due to Elevated Medical Utilization In Medicare Advantage Business]( [Raising GE’s Stock Valuation by 30%]( [Snap: Still Awaiting an Ad Spending Boost as Users and Engagement Increase]( [Cognizant: Firm Focuses On Profitability as Top-Line Expansion Slows]( [Ford: Pricing Eases UAW Strike Damage]( [Eli Lilly: Pipeline Gains and Great Diabetes and Weight-Loss Sales]( [AbbVie: Strong Results and Robust Outlook]( [Uber: Firm Delivers On Profitability, Which Will Grow Impressively With Revenue]( [Roblox: Bookings Growth Continues to Accelerate Around the World]( [Alibaba: Increased Investments Bring Uncertainty to Margins]( Future-Proof Your Strategy With Morningstar Investor Build a portfolio that's durable, no matter what the market throws your way. 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