A value stock is generally one that trades at a price lower than its fundamental value or what its performance suggests it should be worth. Typically, these are shares of a company with solid fundamentals that are priced below those of its peers, based on an analysis of the price-to-earnings ratio, yield, price-to-book value, and other relevant factors. Value stocks are often overlooked by the market or undervalued due to factors such as market volatility, economic downturns, or negative news surrounding the company, which may be temporary in nature. With trading flows starting to shift from growth to value, now is the time to take some profit and get ready for what could be a wild fourth quarter.
The BofA Securities Value 10 portfolio is quantitatively generated based on the firm’s proprietary BofA Securities model. The analysts use the S&P 500 as their reference universe. We screened the current list of companies looking for those paying the largest dividends, which have the potential to provide investors with solid total returns for the remainder of 2025. Here at 247 Wall St., we consistently emphasize the power of total return to our readers. This strategy can significantly boost your overall investing success. Total return is the combined increase in a stock’s value and the dividends it pays. All of the BofA Securities Value 10 picks are rated Buy.
Why do we cover Bank of America dividend value stocks?
Dividend value stocks offer investors a reliable source of passive income. Passive income is characterized by its ability to generate revenue without requiring the earner’s continuous active effort, making it a desirable financial strategy for those seeking to diversify their income streams or achieve financial independence.
Allstate
This insurance giant increased its payout to shareholders by 8.7% earlier this year, yielding a 1.84% dividend, and is trading at 10 times earnings. Allstate Corp. (NYSE: ALL) provides property, casualty, and other insurance products in the United States and Canada.
It operates in five segments:
- Allstate Protection
- Run-off Property-Liability
- Protection Services
- Allstate Health and Benefits
- Corporate and Other
The company offers private passenger auto, homeowners, personal lines, and commercial insurance products through agents, contact centers, and online, as well as property and casualty insurance. It also provides consumer product protection plans, device and mobile data collection services, and analytic solutions using automotive telematics information, roadside assistance, protection, and insurance products, such as identity protection and restoration through:
- Allstate Protection Plans
- Allstate Dealer Services
- Allstate Roadside
- Arity
- Allstate Identity Protection brands
In addition, the company offers life, accident, critical illness, hospital indemnity, short-term disability, and other health insurance products; self-funded stop-loss and fully insured group health products to employers; Medicare supplement, ancillary products, and short-term medical insurance to individuals through independent agents, owned agencies, benefits brokers, and Allstate exclusive agents; and net investment income, net gains on investments, other revenue, debt service, holding company activities, and certain non-insurance operations.
The company also offers automotive protection, vehicle service contracts, guaranteed asset protection, road hazard tires and wheels, and paintless dent repair protection. Additionally, it provides roadside assistance, mobility data collection services, and analytical solutions utilizing automotive telematics information. Additionally, it includes identity theft protection and remediation services.
BofA Securities has a huge $275 target price.
Devon Energy
Down nearly 26% from its 52-week high and trading at 8 times forward earnings, this S&P 500 energy stock has been affected by volatility in oil and gas prices, despite its attractive dividend policy, which includes a fixed 3.32% dividend that has more than doubled since 2021, as well as a variable dividend component. Devon Energy Corp. (NYSE: DVN) is an oil and gas producer in the United States with a diversified multi-basin portfolio headlined by an acreage position in the Delaware Basin. The company is primarily engaged in the exploration, development, and production of oil, natural gas, and natural gas liquids.
It owns a portfolio of assets located in the:
- Delaware Basin
- Rockies
- Eagle Ford
- Anadarko Basin
The Delaware Basin operates in southeast New Mexico and across the state line into west Texas. It offers exploration and development opportunities from many geologic reservoirs and play types, including the oil-rich Wolfcamp, Bone Spring, Avalon, and Delaware formations.
The company’s Rockies development consists of its Williston Basin and Powder River Basin assets.
The Eagle Ford operations are located in Texas’s DeWitt and Karnes counties.
The Anadarko Basin development is located in western Oklahoma. It has a joint venture with Dow to develop a portion of its acreage in the Anadarko Basin.
Bank of America’s target price for the shares is $45.
Merck
Merck & Co. Inc. (NYSE: MRK) develops and produces medicines, vaccines, biological therapies, and animal health products. Merck is not just a healthcare company but a global force in the industry. This healthcare giant is a no-brainer, down more than 30% over the past year, while paying a solid 3.53% dividend. The company operates through two segments.
The Pharmaceutical segment offers human health pharmaceutical products in these areas:
- Oncology
- Hospital acute care
- Immunology
- Neuroscience
- Virology
- Cardiovascular
- Diabetes
- Vaccine products, such as preventive pediatric, adolescent, and adult vaccines
The Animal Health segment discovers, develops, manufactures, and markets veterinary pharmaceuticals, vaccines, health management solutions and services, as well as digitally connected identification, traceability, and monitoring products.
Merck serves:
- Drug wholesalers
- Retailers
- Hospitals
- Government agencies
- Managed healthcare providers, such as health maintenance organizations
- Pharmacy benefit managers and other institutions
- Physicians
- Physician distributors
- Veterinarians
- Animal producers
Merck’s growth is a result of its efforts and strategic collaborations. The company works with AstraZeneca, Bayer, Eisai, Ridgeback Biotherapeutics, and Gilead Sciences to jointly develop and commercialize long-acting treatments for HIV, demonstrating a commitment to innovation and growth.
The Bank of America target price is set at $98.
MetLife
This is another insurance and financial giant, which is trading at just under 14 times earnings and has a solid 2.69% dividend yield. MetLife Inc. (NYSE: MET) is a financial services company that provides insurance, annuities, employee benefits, and asset management to individual and institutional customers.
Its segments include:
- Group Benefits
- Retirement and Income Solutions (RIS); Asia; Latin America; Europe, the Middle East and Africa (EMEA)
- MetLife Holdings
The Group Benefits segment offers:
- Life insurance
- Dental
- Group short-term and long-term disability
- Paid family and medical leave
- Individual disability
- Accidental death and dismemberment insurance
- Accident and health insurance
- Vision insurance
- Prepaid legal plans
- Pet insurance
The RIS segment offers funding and financing solutions that enable institutional customers to mitigate and manage liabilities primarily associated with their employee benefit programs, utilizing a range of life and annuity-based insurance and investment products.
It operates across EMEA in both developed (Western Europe) and emerging (Central and Eastern Europe, the Middle East, and Africa) markets.
Bank of America has a $100 target price.
Nucor
Trading at 12.4 times forward earnings with a reasonable 1.59% dividend, this is one of Warren Buffett’s newest additions to Berkshire Hathaway. Nucor Corp. (NYSE: NUE) is a manufacturer of steel and steel products, with operating facilities in the United States, Canada, and Mexico. The company also produces and procures ferrous and non-ferrous materials primarily for use in its steel manufacturing business.
Its segments include:
- Steel mills
- Steel products
- Raw materials
Nucor’s products include:
- Carbon and alloy steel in bars, beams, sheet, and plate
- Hollow structural section tubing
- Electrical conduit
- Steel racking
- Steel piling
- Steel joists and joist girders
- Steel deck
- Fabricated concrete reinforcing steel
- Cold finished steel
- Precision castings
- Steel fasteners
- Metal building systems
- Insulated metal panels
- Overhead doors
- Steel grating
- Wire and wire mesh
- Utility structures
The company, through The David J. Joseph Company and its affiliates, also brokers ferrous and nonferrous metals, pig iron, and hot briquetted iron/direct reduced iron; supplies ferro-alloys; and processes ferrous and nonferrous scrap.
The Bank of America price objective is $165.
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