Thanks for joining DividendStocks.com, the daily newsletter built for dividend and income investors like you. We’re thrilled to have you on board and can’t wait to help you discover the best dividend opportunities out there. Before we can start sending your daily insights, please take a quick moment to confirm your subscription: Click Here to Confirm Your Subscription to DividendStocks.com Here’s a small glimpse of what you’ll get access to: Dividend Stock Ideas — Each newsletter features dividend stocks with high yields, sustainable payouts, and strong growth potential. Ex-Dividend Stocks — Want to capture upcoming dividend payouts? Find out which stocks are going ex-dividend this week. Market News and Events — Stay in the loop on the latest developments impacting popular dividend names like AT&T, Exxon Mobil, IBM, Procter & Gamble, and Verizon. Bonus: As a thank-you for confirming, you’ll also receive a free PDF copy of Automatic Income, our popular guide to building wealth through dividend investing. Why wait? Let’s get your dividend journey started! Click Here to Start Discovering Top Income-Generating Stocks See you in your inbox soon, The DividendStocks.com Team P.S. Don’t miss out click here to verify your subscription and secure your daily dividend insights and your free investing guide!
Today's Featured News These 3 Stocks Trade at Discounts the Market Won't Ignore ForeverReported by Dan Schmidt. First Published: 1/5/2026. 
Key Takeaways - The S&P 500 posted another gain above 15% in 2025, but the market is now approaching historically concerning valuation levels.
- When valuations are elevated, slowing earnings growth is harshly punished, and investors often turn to value stocks for safety.
- These three large-cap stocks all trade well below their industry-average P/E ratios, which could help protect against market volatility in 2026.
The S&P 500 closed out 2025 with a total return of about 18% — the third straight year above historical norms, though below the blockbuster 25% gains seen in 2023 and 2024. AI euphoria remains the dominant market theme entering 2026, and familiar names like NVIDIA Corp. (NASDAQ: NVDA) and Alphabet Inc. (NASDAQ: GOOGL) were higher again on the first trading day. If you rode the AI rally since the 2022 market bottom, you're likely sitting on meaningful gains and may be tempted to diversify, especially if your allocation is tech-heavy. The S&P 500 is entering the year trading at roughly 26x forward earnings, well above its 20-year average of about 16x. When valuations are this elevated, investors demand strong earnings growth, and high-multiple stocks can fall out of favor quickly if growth stumbles. If rates remain high, 2026 could be the year value investing stages a comeback. Gold Headed Above $5,000 per Ounce in 2026? Here's How to Play It...
With so many strange events happening across the economy (consumer confidence plummeting, credit-card delinquencies soaring, and more), it's no wonder the richest investors are loading up on gold. But what you might not realize is that there's a much better way to profit from rising gold prices - WITHOUT ever touching an ETF, mining stock, or even bullion. Get the full details here. Below are three ways to de-risk a portfolio by adding stocks that are undervalued and overlooked heading into the new year. Each company trades at a meaningful discount to its industry peers, yet has fundamental and technical tailwinds that suggest the discount may not last. Comcast: Strong Balance Sheet and Sports Expansion Enhance Outlook The Comcast Corp. (NASDAQ: CMCSA) was one of the biggest victims of the cord-cutting wave, as customers moved away from bundled cable toward à la carte streaming services. A "lost decade" is every investor's nightmare: CMCSA is roughly five months from marking that milestone, trading near the same price it did in May 2016. But cord-cutting fatigue is emerging. Streaming services are raising prices and engaging in costly carriage disputes with major networks. Meanwhile, Comcast has quietly built a resilient balance sheet and diversified revenue streams. Its forward price-to-earnings (P/E) ratio of about 6.84 sits well below the communications industry average (16.5) and below major peers like The Walt Disney Co. (NYSE: DIS) and AT&T Inc. (NYSE: T).  Comcast's broadband business remains a steady, high-margin cash generator. While Connectivity and Platforms revenue slowed 1.4% year-over-year (YOY) in Q3 2025, EBITDA margins for the residential and business segments were 37% and 56%, respectively. Advertising should get a lift in 2026 given NBCUniversal's rights to Super Bowl LX, the FIFA World Cup and the Winter Olympics in Italy. The company generated $4.9 billion in free cash flow in Q3, which continues to support its 4.4% dividend. Comcast's value case may be attracting attention already: the stock is up nearly 10% over the past 30 days, and several technical indicators point to potential further upside. Micron: An Essential AI Stock Trading at a Deep Discount How can a stock that gained roughly 200% in 2025 still look undervalued? Despite a parabolic year, Micron Technology Inc. (NASDAQ: MU) remains one of the more reasonably priced plays in the AI supply chain, trading near 29x earnings while the broader tech sector is valued at roughly 75x. A 29x P/E isn't bargain-basement cheap versus the overall market, but it's attractive for a company producing rapid top-line growth and expanding margins. Micron is delivering: 57% YOY quarterly revenue growth, roughly 57% gross margins, and management has boosted guidance repeatedly. Memory businesses are high-margin, and Micron says demand from data centers remains insatiable.  The chart shows a healthy uptrend, with support along the 50-day simple moving average (SMA). That aligns with the TradeSmith Health indicator: MU shares are in the Green Zone, indicating a strong trend with normal pullbacks. For investors seeking AI exposure at a discount to many high-flying software names, Micron is worth a look. Pfizer: Fueling Pipeline Innovation Through Acquisitions Pfizer Inc. (NYSE: PFE) has been weighed down since the COVID-19 vaccine boom faded; the stock is down more than 30% over the last five years. Peer companies like Eli Lilly and Co. (NYSE: LLY) have surged ahead—thanks in part to obesity drugs such as Mounjaro—but Pfizer now trades near historical valuation lows (about 8.4x forward earnings), making it cheaper than most large-cap pharmaceutical peers. Its acquisition of Seagen is starting to contribute meaningfully to oncology sales, adding more than $6 billion in revenue since the deal closed in 2023.  Pfizer is also moving into the obesity-drug arena through acquisitions, buying smaller drugmakers that offer oral and injectable treatment candidates. The market has largely discounted Pfizer's prospects in the GLP-1 space, which helps explain the valuation gap. Low expectations can create opportunity: if Pfizer successfully executes on these assets, upside could be significant. In the meantime, the company provides defensive characteristics through its low valuation and a history of dividend growth.
|