Record-high market indexes tend to make bargain-hunting difficult. Yet even in today’s stretched environment, pockets of value remain—particularly among consumer-focused companies whose products people keep buying no matter what the economy is doing. Three names stand out for combining depressed valuations with substantial dividend income: Realty Income, Clorox, and Campbell’s.
Realty Income (O)
You’ve probably never given this company a second thought, even though you’ve likely walked into one of its properties. Realty Income owns the real estate that houses major retailers like Home Depot, FedEx, and Tractor Supply, collecting rent through triple-net lease agreements that shift maintenance, tax, and insurance costs onto tenants.
The portfolio is massive and nearly full—roughly 15,600 properties running at close to 99% occupancy—which gives management confidence to keep acquiring and developing new locations. The company has earned its nickname, “The Monthly Dividend Company,” having distributed payouts every month since 1994. It recently announced its 135th increase to that dividend.
Shares currently trade around $63, giving the $58 billion company a dividend yield of 5.2%—more than five times what the average S&P 500 stock pays. On the surface, a P/E ratio above 50 might scare off value hunters, but that metric doesn’t tell the real story for REITs. Funds from operations is the number that matters here, and against $4.27 per share in trailing FFO, the effective multiple drops to roughly 15. Combined with that dependable dividend, the valuation case looks solid.
Clorox (CLX)
Best known for its namesake bleach, Clorox’s portfolio extends well beyond cleaning products to include Kingsford charcoal, Hidden Valley dressings, and Burt’s Bees. The stock hasn’t had an easy few years—a damaging 2023 cyberattack, followed by a rocky CRM system upgrade and inflationary pressure, all weighed on sales growth.
But the worst appears to be behind the company. Analysts are now projecting a return to sales growth this fiscal year after the recent slump. Trading around $105 per share for a $13 billion market cap, shares go for about 22 times earnings—a level that suggests the market has already priced in most of the recent turmoil.
The dividend tells an encouraging story too. Annual payouts now total $5 per share, and with the stock price depressed, the yield has climbed to 4.7%. Coverage looks solid: Clorox generated $881 million in free cash flow against roughly $600 million spent on dividends last year. Given decades of consistent annual increases, income-focused investors have reason to take note before the stock price recovers and compresses that yield.
Campbell’s (CPB)
Campbell’s has weathered its own rough patch. Beyond the iconic soup cans, the company’s portfolio includes V8, Pepperidge Farm, and Rao’s Homemade. Like Clorox, Campbell’s dealt with IT-related disruptions that hurt sales, compounded by a broader consumer shift toward organic and natural food options that has pressured packaged food companies industry-wide.
The turnaround plan centers partly on Rao’s, a premium pasta sauce brand born from a beloved New York restaurant. By leaning into natural ingredients and small-batch production methods, Campbell’s is betting it can command higher prices and win over quality-conscious shoppers.
The stock has fallen to multi-year lows, now trading around $23 per share for a $6.9 billion market cap—putting the P/E ratio at just 11, unusually cheap for this sector. That depressed price has pushed the dividend yield up to 6.8%, based on an annual payout of $1.56 per share. That kind of yield often raises red flags, but the underlying coverage looks sound: diluted earnings per share for the first nine months of fiscal 2026 came in at $1.55, essentially matching the dividend outlay. A cut seems unlikely given that math, making this a reasonable pick for investors prioritizing income.
