3 Under-the-Radar Dividend Stocks Yielding Over 5% Right Now

Many investors are piling into a select group of dividend-paying companies that are very well-known. These big companies trade with a premium similar to growth stocks, as they are often among the first companies that come to mind when someone is looking for a dividend stock.

It’s a good idea to broaden your holdings beyond just the top few picks. There are dividend stocks that have similarly good safety profiles and pay solid dividends, and they also come with the added benefit of delivering much more upside potential once they gain more recognition on Wall Street.

Some of them are trading at very cheap levels compared to your usual big-cap dividend players, so it’s worth snapping them up before they start recovering.

Flowers Foods (FLO)

Flowers Foods (NYSE:FLO) sells bakery products and has been one of the most consistent stocks on the stock market. It was on a well-established trajectory for over two decades and returned around 2,000% gains from the year 2000 to its peak in 2021. However, things have only been looking down for this company.

The company saw a cooling demand for its bakery products due to an economic slowdown and GLP-1 drugs promoting healthier eating habits. It also didn’t help that inflation ticked up and pushed many customers away from buying anything discretionary at all.

As a result, revenue stagnated and earnings fell. If we look at trailing twelve-month earnings. Net income was $224 million and EBITDA was $470 million in Q2 2023. Net income fell to $123 million and EBITDA fell to $345 million by Q4 2023, while revenue was basically stagnant at $5.1 billion. FLO stock fell accordingly.

However, while the revenue underperformance still continues, Flowers Foods has managed to turn the ship around regarding its bottom line. TTM net income was at $248 million, and EBITDA came in at $525 million for Q4 2024. FLO stock is yet to move higher despite the earnings recovery, as they are focusing on sales figures.

Wall Street’s tunnel vision on top-line figures is a great opportunity to set up a solid position here before it recovers, since revenue growth here was historically sluggish regardless. It grew revenue from $3.7 billion to $4.1 billion from 2013 to 2019, but the stock still continued on an upward trajectory. As such, a comeback rally is very likely in the long run, especially as rates go lower and as we enter a new economic cycle.

FLO also comes with a 5.46% dividend yield.

Hess Midstream LP (HESM)

Hess Midstream LP (NYSE:HESM) is one of the most solid midstream stocks you can buy today. Midstream companies are great against any downturns since their earnings are very predictable and aren’t dependent on energy prices but on demand instead. And even a recession shouldn’t cause a long-term demand slump. The lower energy prices from a recession are more than enough reason for businesses to keep on consuming oil and gas.

It has been on a consistent uptrend over the past few years, which I think is unlikely to stop anytime soon. The current administration is also friendly towards oil and gas operations and is unlikely to hinder expansion. On top of that, the management here has been very friendly to shareholders. The company announced a $200 million share repurchase plan earlier this week, and HESM stock already comes with a forward dividend yield of 7.66%.

The payout ratio is at 87.19%, but this is quite typical for a midstream company. The dividends alone should be enough reason to look further into the company.

And at less than 15 times earnings, it’s not that expensive for the performance you are getting. Analysts expect around 23% EPS growth in 2025 and 20.4% EPS growth in 2026, and so on through 2027. Revenue is also expected to grow by around 10% annually this year and next year. Without a major black swan event, HESM could still deliver 45-50% upside in the next two years from here if Wall Street holds up the 12x forward earnings premium and estimates are met.

Stanley Black & Decker (SWK)

Stanley Black & Decker (NYSE:SWK) has been a huge disappointment to its long-term shareholders, and even to those who’ve bought the dip and accumulated from late 2022 to early 2025. Back then, it looked like a good deal since the stock traded near COVID lows and was slated for a big recovery rally as interest rates started to fall. Instead, the stock is down a dismal 22.6% year-to-date.

Unfortunately, the delay in interest rate cuts and tariffs has thrown sand into the company’s gears. The company expects tariffs to negatively impact 2025 EPS by $0.75. Management has already responded by increasing prices by high single digits in April and has announced plans for another price increase at the beginning of Q3 2025. It is now accelerating adjustments to its supply chain to use Mexico and reduce China tariffs costs, but this may take up to two years.

That wasn’t the only headache for shareholders since Q1 2025 net sales still fell 3% to $3.7 billion. Organic revenue only gained by 1%, which was then shaved off by 2% due to currency headwinds. The macros are simply not cooperating with SWK stock.

Obviously, this doesn’t mean that things will be sluggish here forever. I see the current environment as a good entry point for a long-term position. President Donald Trump is already starting to backtrack and reduce his tariffs. As of writing, tariffs on China could drop to 80% and probably much less once China responds by dropping its tariffs. The market could then re-rate SWK stock higher and then accelerate when 1. Interest eventually go lower, and 2. When Stanley Decker reverses the profit forecast cut it made in April due to tariffs.

There’s no guarantee of both of those things happening in the near term, but if it does, I see juicy upside here. You can sit on SWK’s 5.3% dividend yield in the meantime.

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