By: Dividend Sensei
The recent market rally has made stocks overvalued once more, but some small-cap hidden gems are 30% undervalued.
Many small caps have already mostly priced in the 2023 recession and might bottom much sooner than the S&P.
Here are two 5%-yielding small-cap aristocrat bargains that are 28% to 38% historically undervalued.
The first is one of the best regional banks you’ve never heard of, with loan losses 50X lower than its peers, superior profitability, and a 28-year dividend growth streak.
It could deliver 30% CAGR returns through 2024.
The other is a 51-year-streak dividend king yielding 5.1% that could deliver Buffett-like 20% annual returns through 2024, and management is guiding for 11% to 14% long-term returns, just as it’s delivered for 34 years.