8 Best Undervalued Stocks To Buy Now For August 2026
Investors seeking undervalued dividend stocks should prioritize companies demonstrating strong growth potential. The second key is having the patience to wait for the reprice. To find undervalued stock options, the author screening for a price-to-book ratio under 2, P/E below industry average, debt-to-equity below 1, over 15% three-year revenue growth and positive analyst opinions. Adividend yield above 1.5% also ensures investors are compensated while awaiting revaluation. Undervalued stocks to consider include global miners, insurers and real estate firms that exhibit robust financials and strategic initiatives. However, potential risks like single-asset operations or emerging market exposure warrant thorough individual research before investing.
The first key to investing in undervalued stocks is finding companies with growth potential. Growth in revenue, margins or earnings is often the catalyst for higher stock prices, particularly for stocks that investors have turned away from temporarily.
A second key is having the patience to wait for the reprice. Income can help in that regard. If you’re earning dividends from your undervalued positions, there’s more incentive to stay invested for the long term. Those two principles guided the selection of eight undervalued dividend-paying stocks worth considering for August 2026.
To identify the top eight undervalued dividend-paying stocks for August, I screened U.S.-traded stocks on these criteria:
Eight stocks meeting these qualifications are introduced in the table below. Note that REITs and BDCs were excluded because the P/E ratio is less meaningful in those businesses. Also, a changing stock market outlook can affect the prospects for value stocks, so keep that in mind as you research candidates for your portfolio.
A review of each company follows. Metrics are sourced from company reports and stockanalysis.com. For more investing ideas, see Best index funds 2026 and best dividend stocks.
Barrick is a large gold and copper miner, explorer and developer with projects in 17 countries and five continents.
Barrick Mining trades at a P/E of 9.7, about 21% lower than the industry average of 12.8. As a miner, Barrick offers leveraged exposure to gold and copper prices. That has been a strong positive in this historically strong period for metals: The company has increased its EPS to $2.93 in 2025 from $0.72 in 2023.
In the latest quarter, Barrick outperformed its gold production and cost projections, increasing its operating cash flow by 111% over the prior-year quarter.
As of February, Barrick is targeting a total dividend payout of 50% of attributable free cash flow. Shareholders will receive a fixed quarterly payout of $0.175 plus a performance adjustment at each year-end. Without the performance adjustment, the dividend yield is 1.9%.
Based in Hong Kong, Prudential PLC provides asset management services and life and health insurance to customers in China, India, Africa and southeast Asia.
Prudential PLC trades at a P/E of 8.8, which is 38% below the industry average of 14.1. With its focus on emerging markets, the company has delivered double- and triple-digit revenue growth since 2023. EPS has increased to $3.07 from $1.24 in the same period. In January, Prudential PLC announced an aggressive $1.2 billion share repurchase program, indicating leadership’s confidence in future growth opportunities.
PUK pays a semi-annual dividend that’s increased in each of the past four years. The payouts vary, but the last two payments imply a yield of 1.7%.
Bermuda-based Hamilton Insurance provides specialty insurance and reinsurance to customers around the world. The company prioritizes margin quality and strategic capital allocation for sustainable, profitable results.
Hamilton Insurance trades at a P/E of 5.7, which is 21% below the industry average of 7.2. That valuation combined with recent double-digit revenue and EPS growth, plus low leverage compared to peers, makes HG worth a look.
Highlights from the latest quarter include an 11.5% increase in gross premiums written and a 70% gain in diluted income per share attributable to common shareholders.
The dividend has so far consisted of one special annual payout of $2 per share in 2026, delivering a 5.7% yield to current shareholders. The company also actively engages in share repurchases, spending $19.7 million on buybacks in the first quarter.
IRSA is a real estate holding company that invests in malls, hotels, offices and residential developments in Argentina.
IRSA trades at a P/E of 4.7, which is well below the industry average of 72.5. The company stands out for its deep and diversified property portfolio, ample liquidity and relatively low leverage.
In the last reported quarter ending on May 7, the company reported 100% occupancy in its premium office portfolio and 98% occupancy in shopping malls. The quarter also included a large fair value adjustment that skewed operating results, but EBITDA in the first nine months of fiscal year 2026 increased by nearly 1,000% versus the prior-year period.
IRSA pays an annual variable dividend. The last payout of $1.40 in November of 2025 implies a yield of 9%.
Brazil-based Vinci Compass Investments is a full-service asset management firm that specializes in alternative investments.
Vinci Compass Investments trades at a P/E of 13.1, which is 59% below the industry average of 31.6. The low valuation is complemented by recent strategic moves expected to strengthen distribution and support growth, particularly in equities and private credit. The company acquired a controlling interest in Verde Asset Management and announced a strategic combination with BACS Asset Management.
The latest quarterly highlights included a 47% increase in fee-related earnings and a 14% gain in total assets under management and advisory compared to the prior-year period. Distributable earnings per share declined 3%.
Vinci Compass Investments has paid a quarterly dividend since 2021. The last quarterly payment of $0.17 implies a yield of 7%.
The company provides a range of products and services to the oil and gas industry, including natural gas compression, compressors used in oil and gas production and processing and compression unit assembly.
Natural Gas Services Group trades at a P/E of 22.1, which is slightly favorable to the industry average of 24.1. Additionally, the company recently acquired Flatrock Compression. The transaction strengthens NGS’s presence in strategic locations and is expected to improve NGS’ financial metrics immediately.
For the first quarter, NGS reported year-over-year revenue and EPS gains of 17.1% and 39.5%, respectively. The Flatrock acquisition was announced in June, after quarter-end.
NGS initiated its quarterly dividend in 2025. The last payment of $0.15 per share implies a yield of 1.6%.
Waterdrop operates a large online insurance marketplace and a medical crowdfunding platform in China.
Waterdrop trades at a P/E of 5.5, which is 61% below the industry average of 14.1. Investors also like the company’s revenue growth track record spanning every quarter since 2024, its rich liquidity position with more cash than debt, and its strategic transition to AI-driven insurance distribution.
In its latest earnings release, Waterdrop reported a 64.8% increase in net operating revenue and a 5% gain in operating profit. First-year premiums generated by the company’s “AI Insurance Expert” resource increased 17.7%.
Waterdrop began paying a twice-annual dividend in 2024. The most recent payout of $0.024 equates to a yield of 4%.
Caledonia explores, develops and produces gold through one asset in Zimbabwe. The company has a pipeline of development projects and a strategic priority to evolve into a higher-volume producer.
Caledonia trades at a P/E of 5.3, 59% below the industry average of 12.8. While the company operates one mine today, that operation produces enough cash to fund growth initiatives and a generous dividend program. Looking ahead, Caledonia’s Bilboes Gold Project is expected to begin producing in late 2028. The project’s predicted post-tax internal return rate is 32.5% assuming a gold price of $2,548. The actual return could be much higher given that gold is currently trading near $4,000.
In the first quarter, Caledonia Mining reported a revenue gain of 18.3% and a profit increase of 69.4%. Prevailing high gold prices were a contributing factor. The company’s gold production was actually below expectations due to lower grades mined in the quarter.
The company pays a quarterly dividend of $0.14 for a yield of 3.1%.
Screening on value and growth metrics simultaneously helps you weed out companies that are cheap for a reason. Even with some growth characteristics, low valuations can reflect risks that don’t align with your investing goals—single-asset mining operations, emerging market exposure, fluctuating dividends and geopolitical risk all require careful research. If you want the potential reward of undervalued stocks, you have to understand and accept the risks.