Three undervalued Dividend Aristocrats we identified a year ago have delivered positive returns since.

Three new picks, Clorox (CLX), Genuine Parts (GPC), and McCormick (MKC), look equally compelling.

A recent study identified one single habit that doubled Americans’ retirement savings and moved retirement from dream, to reality. Read more here.

A year ago, we identified three Dividend Aristocrats trading at compelling discounts to fair value. That April 1, 2025 article recommended Northwest Natural (NYSE: NWN), Archer Daniels Midland (NYSE: ADM), and PepsiCo (NASDAQ: PEP) as undervalued names worth owning. All three delivered positive returns over the following 12 months, two by wide margins. We are now applying the same framework to identify three new Dividend Aristocrats where the undervaluation case looks equally compelling.

The S&P 500 returned 15.9% from April 1, 2025, through March 31, 2026. Two of our three picks beat that benchmark handily.

ADM was the standout. Shares rose from $46.55 to $71.75, a gain of roughly 54%, as the market repriced the stock after years of accounting-investigation overhang began to lift. The forward P/E compressed toward 15x as management delivered FY2025 free cash flow of $4.20 billion and raised its dividend for the 53rd consecutive year. The accounting cloud was obscuring a fundamentally sound agricultural processing business, and patient investors were rewarded.

Read: Data Shows One Habit Doubles American’s Savings And Boosts Retirement

Most Americans drastically underestimate how much they need to retire and overestimate how prepared they are. But data shows that people with one habit have more than double the savings of those who don’t.

Northwest Natural gained roughly 30%, from $41.13 to $53.62. The January 2025 SiEnergy acquisition added approximately 98,000 connections, Oregon rate increases took effect in October 2025, and the company extended its record to 70 consecutive years of dividend increases. Stifel raised its price target to $58 following Q4 results.

PepsiCo delivered a more modest gain of roughly 9%, from $143.92 to $156.82. The company beat both revenue and EPS estimates in Q4 2025 and authorized a new $10 billion buyback through February 2030, but Rockstar brand impairment charges totaling $1.993 billion and tariff-driven commodity cost pressures capped the upside. A positive total return with a growing dividend is a win.

The full original analysis is available at 247wallst.com.

Clorox (NYSE: CLX) stock has pulled back sharply, with shares trading near $104 after falling 29.6% over the past year. The drop reflects real headwinds: FY2026 guidance calls for net sales of −6% to −10%, and an ERP transition created roughly a $0.90-per-share headwind. The final phase of the U.S. ERP implementation completed in January 2026, and a definitive agreement to acquire GOJO Industries, maker of the Purell brand opens a new growth avenue. The quarterly dividend is $1.24 per share, the analyst consensus target is $122.82, and our predicted price of $115.61 implies roughly 15% upside from current levels.

Genuine Parts (NYSE: GPC) shares trade near $106, down 11.2% over the past year. Q4 2025 adjusted EPS of $1.55 missed the $1.81 estimate, and a $741.97 million non-cash pension settlement charge drove a GAAP net loss. The forward story is a planned tax-free separation into Global Automotive and Global Industrial businesses, targeted for Q1 2027, unlocking value across addressable markets of $200 billion in automotive aftermarket and $150 billion in global industrial distribution. The company has raised its dividend for 70 consecutive years, most recently to $1.0625 per quarter. The analyst consensus target is $139.12, and our predicted price of $120.54 implies roughly 15.5% upside.

McCormick (NYSE: MKC) is our top new pick. Shares have fallen 38.7% over the past year to near $50, creating a significant dislocation from intrinsic value. Q1 FY2026 revenue of $1.87 billion beat estimates of $1.79 billion, with adjusted EPS of $0.66 beating the $0.61 consensus. The January 2026 acquisition of an additional 25% stake in McCormick de Mexico, bringing the total to 75% contributed meaningfully to 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, with a dividend that has grown without interruption for over 25 years. The analyst consensus target is $67.77. Our predicted price of $62.57 implies roughly 23% upside from current levels, making it the highest-conviction name among our three new picks.

A year ago, the common thread across the three undervalued Dividend Aristocrats was durable dividend growth, identifiable near-term headwinds masking long-term value, and prices that did not reflect normalized earnings power. All three delivered. Our three new picks share those same characteristics today: each has raised its dividend through multiple economic cycles, each faces a specific and arguably temporary challenge that has pressured the stock, and each trades at a discount to intrinsic value. The framework worked once. The question is whether the market will recognize the same pattern again.

 

Most Americans drastically underestimate how much they need to retire and overestimate how prepared they are. But data shows that people with one habit have more than double the savings of those who don’t.

And no, it’s got nothing to do with increasing your income, savings, clipping coupons, or even cutting back on your lifestyle. It’s much more straightforward (and powerful) than any of that. Frankly, it’s shocking more people don’t adopt the habit given how easy it is.