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A year ago, we identified three dividend aristocrats trade at attractive discounts For reasonable price. That article was recommended on April 1, 2025 northwest natural (NYSE:NWN), Archer Daniels Midland (NYSE: ADM), And PepsiCo (NASDAQ:PEP | pep price prediction) Low value names are worth keeping. All three delivered positive returns over the next 12 months, two of which had wide margins. Now we’re applying the same framework to identify three new Dividend Aristocrats where the case for undervaluation looks equally compelling.
How did the original three perform?
The S&P 500 returned 15.9% from April 1, 2025, to March 31, 2026. Two of our three beat that benchmark easily.
The ADM was extraordinary. Shares rose from $46.55 to $71.75, a gain of about 54%, as the market revalued the stock after years of accounting-investigation problems subsided. The Forward P/E narrows to 15x as management projects $4.20 billion of free cash flow in FY2025 and raises its dividend for the 53rd consecutive year. The accounting cloud was obscuring a fundamentally strong agro-processing business, and patient investors were rewarded.
Northwest Natural rose nearly 30% from $41.13 to $53.62. The SiEnergy acquisition added approximately 98,000 connections in January 2025, the Oregon rate increase took effect in October 2025, and the company extended its record for dividend increases to 70 consecutive years. Stifel raised its price target to $58 after the fourth-quarter results.
PepsiCo posted a more modest gain of about 9%, from $143.92 to $156.82. The company beat both revenue and EPS estimates in the fourth quarter of 2025 and authorized $10 billion of new buybacks through February 2030, but Rockstar brand impairment charges totaled $1.993 billion and Tariff-driven commodity cost pressures Shadowed upside down. Positive total returns with growing dividends is a win.
Full original analysis available here 247wallst.com.
Three new low-value dividend elite picks
clorox
clorox (NYSE:CLX) The stock has fallen sharply, with shares trading near $104 after falling 29.6% in the past year. The decline reflects real headwinds: FY2026 guidance calls for -6% to -10% net sales growth, and the ERP transition has created a roughly $0.90-per-share headwind. The final phase of US ERP implementation was completed in January 2026, and a definitive agreement to acquire GOJO Industries, maker of the Purell brand, opened a new path to growth. The quarterly dividend is $1.24 per share, the analyst consensus target is $122.82, and our estimated price of $115.61 is about 15% above current levels.
genuine Parts
genuine Parts (NYSE:GPC) Shares trade near $106, down 11.2% from the past year. Fourth-quarter 2025 adjusted EPS of $1.55 missed estimates of $1.81, and GAAP net loss due to a $741.97 million non-cash pension settlement charge. The story ahead is a planned tax-free separation into global automotive and global industrial businesses, targeted for Q1 2027, unlocking value in addressable markets worth $200 billion in the automotive aftermarket and $150 billion in global industrial distribution. The company has increased its dividend for 70 consecutive years, most recently by $1.0625 per quarter. The analyst consensus target is $139.12, and our estimated price of $120.54 represents an upside of about 15.5%.
McCormick
McCormick (NYSE: MKC) is our top new pick. Shares have fallen 38.7% over the past year to near $50, creating a significant dislocation in intrinsic value. FY2026 Q1 revenue of $1.87 billion beat estimates of $1.79 billion, while adjusted EPS of $0.66 beat the consensus of $0.61. The acquisition of an additional 25% stake in McCormick de Mexico in January 2026 brought the total stake to 75%, contributing meaningfully to the growth. FY2026 guidance calls for net sales growth of 13% to 17% and adjusted EPS of $3.05 to $3.13. McCormick trades at a trailing P/E of 18x, well below its historical range, having grown its dividend without interruption for over 25 years. The analyst consensus target is $67.77. Our estimated price of $62.57 is approximately 23% above current levels, making it the most bullish name among our three new picks.
Same thesis, applied again
A year ago, the common thread among the three undervalued Dividend Aristocrats was sustainable dividend growth, recognizable near-term headwinds hiding long-term value, and prices that didn’t reflect normalized earnings power. All three delivered. Our three new picks today share the same characteristics: each has raised its dividend through multiple economic cycles, each faces a specific and arguably temporary challenge that has put pressure on the stock, and each trades at a discount to intrinsic value. The outline worked once. The question is whether the market will recognize the same pattern again.