• Dividend Data
  • Posts
  • 4 Undervalued Stocks I’m Buying in the 2025 Bull Market

4 Undervalued Stocks I’m Buying in the 2025 Bull Market

September 08, 2025

Hello Investors,

The 2025 Bull Market continues… Despite higher prices, I continue to find opportunities to keep investing in. Just this past week, I bought 4 undervalued stocks which boosted my dividend income & overall growth. Below, I explain why I bought each in the new monthly dividend portfolio update video.

Today’s topics:

  • $260K Portfolio Update

  • 4 Undervalued Stocks I’m Buying

  • 2025 Market Check

The Key Story

4 Undervalued Stocks I’m Buying in the 2025 Bull Market

2025 Market Analysis (0:00)

  • Context: My dividend-growth portfolio hit an all-time high of ~$260,000 (then dipped ~$3k with Friday’s sell-off). Total return: 67.87% (over $15k).

  • Big takeaway: The S&P 500 is +10.7% YTD and ~+30% since the April bottom. Dividend yield sits near ~1.1%. Don’t let all-time highs scare you—fundamentals for mega-cap tech are strong, driven by a decade-long AI wave.

  • Valuation view: Some names look premium (e.g., Apple; Broadcom trending that way), but overall not a bubble. Focus on business quality, entry price, and growth—not just multiples.

Intro & Housekeeping (4:10)

  • I’ve updated this account monthly for 5+ years—from $30k → $260k.

  • Using my tool DividendData.com throughout (portfolio tracking, analysis, AI assistant, community/Discord).

  • Fantasy football league drafted (A+ grade 😎).

Portfolio Update & Dividend Income (5:22)

  • Top positions by value: Microsoft ($57.7k, +94.4%), Visa ($54k, +37%), Altria ($38.5k, +93%, my largest dividend payer), Alphabet ($37.1k, +45%).

  • Growth vs yield: I prefer paying a fair multiple for high EPS growers (MSFT, GOOGL, V). Lower-growth names like Altria must be bought cheap; recent rerating means it’s no longer the steal it was.

  • Projected dividends: $6,381/yr (~$1,600/quarter, $531/month, $17.48/day, $0.73/hour).

    • Lowest month: ~$42 (this month). Highest: October ~$643 (mostly Altria $613 + Salesforce $30).

    • November has surged (~$548 now, was ~$80 earlier this year) on midstream positions (MPLX, HESM, EPD)—my “pipeline month.”

New Buys (11:33)

Buy 1 — MPLX (11:41)

  • 39 shares @ $49.65; ~7.7% forward yield.

  • Mgmt telegraphed ~~12% dividend raise (in line with prior).

  • Thesis: High yield + high dividend growth (>10% 3-yr CAGR). Even 5–7% long-term dividend growth makes the math compelling. Likely a recurring buy for me.

Buy 2 — Hess Midstream (HESM) (13:00)

  • 26 shares @ $40.87; ~7.23% forward yield.

  • 5-yr dividend CAGR ~11%; raises every quarter (most recent +3.83%).

  • Preference vs. Altria (at today’s prices) due to higher dividend-growth runway.

Buy 3 — Salesforce (CRM) (13:55)

  • 4 shares @ $239.70 (total position ~$18k, currently ~–7%).

  • Latest EPS $2.91 (record); FCF/share $12.93 last year; trades around ~19.3× FCF.

  • $13B cash from ops / $12.4B FCF; buybacks + a new, low-payout dividend (first hike +4%).

  • Raised FY guidance; Data + AI ARR ~$1.2B (+120% YoY).

  • Forward P/E ~23, near multi-year lows vs its history—I’m accumulating.

Buy 4 — Texas Pacific Land (TPL) (18:31)

  • 1 share @ ~$851.48.

  • Royalty model on Permian land (oil/gas + growing water royalties) → ~90% gross margins, cash-flow machine.

  • Starter position now; becomes a top target if energy sells off.

Strategy Notes

  • Core tilt: Quality growth (MSFT/GOOGL/V) supplemented by select high-yield compounders (MPLX/HESM/MO).

  • I’m not adding to Alphabet at current highs, but remain bullish long term.

  • Expect dividend income to keep rising as midstream positions snowball.

—
Follow along & analyze with me: DividendData.com (portfolio tracking, stock analysis, AI research, community).

How did you like today’s newsletter?

Login or Subscribe to participate in polls.

That’s it for this week’s update. If you want to follow along in real time, analyze these tickers, or track your own portfolio, jump into DividendData.com. You’ll also find our Discord community and my AI research assistant there. Hit reply and tell me what you’re buying—I may feature a few notes next week.

📅 Keep Investing. Stay informed.

– Zach
Founder, Dividend Data

P.S. Questions or suggestions? Reply to this email—I'd love your feedback!

Follow on YouTube | Listen on Spotify | Visit DividendData.com 

Disclaimer: Dividend Dividend (Dividend Data LLC) is not a professional financial service. All materials released from Dividend Data (Dividend Data LLC) are for educational and entertainment purposes. Dividend Data (Dividend Data LLC) is not a replacement for a professional's opinion. Contributors to the Dividend Data (Dividend Data LLC) might have equities mentioned in the newsletter