3 Bank of America Value 10 Stocks Pay Dividends and Trade Under 10X PE

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By Lee Jackson Published

Quick Read

  • After a furious rally off the lows of the correction, stocks are pricey, and investors should be cautious.

  • Dividend-paying value stocks make sense now for those who would like to stay fully invested.

  • Bank of America’s Value 10 list includes the firms’ top ideas, and three of them pay dividends and trade under 10 times price-to-earnings.

  • The analyst who called NVIDIA in 2010 just named his top 10 stocks and Allstate wasn't one of them. Get them here FREE.

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3 Bank of America Value 10 Stocks Pay Dividends and Trade Under 10X PE

© Bank of America (CC BY 2.0) by Mike Mozart

Value stocks are generally companies that trade at a price below their fundamental value or what their performance suggests they should be worth. Typically, these are shares of companies with solid fundamentals that are priced below those of their peers, based on an analysis of price-to-earnings ratios, yields, price-to-book ratios, 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.

The BofA Securities Value 10 portfolio is generated quantitatively using the firm’s proprietary BofA Securities model. The analysts use the S&P 500 as their universe. We screened the current list for companies that pay dependable dividends and are trading at under 10 times price-to-earnings ratios, which could deliver solid total returns for the remainder of 2026. 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.

Allstate

This insurance giant raised its dividend by 8% in January and currently yields 1.89%. Allstate (NYSE: ALL | ALL Price Prediction), together with its subsidiaries, provides property, casualty, and other insurance products in the United States and Canada and trades at 5.6 times earnings.

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

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, paintless dent repair protection, roadside assistance, mobility data collection services, and analytic solutions using automotive telematics information, identity theft protection, and remediation services.

BofA Securities has a huge $297 target price.

Edison International

Trading at 6.2 times earnings with one of the highest dividends in the utility sector at 4.78%, this is a strong idea for the rest of 2026. Edison International (NYSE: EIX) is an electric utility holding company focused on providing clean and reliable energy and energy services through its independent companies. It is the parent holding company of Southern California Edison Company (SCE) and Trio.

SCE is a public utility primarily engaged in the business of supplying and delivering electricity to an approximately 50,000 square mile area across Southern, Central, and Coastal California.

Trio is a global energy advisory firm providing integrated sustainability and energy advisory services to large commercial, industrial, and institutional organizations in North America and Europe.

Trio provides integrated strategy and implementation solutions in:

  • Sustainability
  • Renewables
  • Energy procurement
  • Conventional supply
  • Energy optimization
  • Transportation electrification

The Bank of America target price is $80.

Synchrony Financial

This fast-growing financial trades at 8.10 times estimated earnings and offers a 1.64% dividend yield. Synchrony Financial (NYSE: SYF) is a consumer financial services company focused on delivering digitally enabled product suites.

The company provides a range of credit products through financing programs established with a diverse group of national and regional retailers, local merchants, manufacturers, buying groups, industry associations, and healthcare service providers.

It offers private-label, dual-card, co-brand, and general-purpose credit cards, as well as short- and long-term installment loans, and savings products through Synchrony Bank. The company primarily manages its credit products through five sales platforms, such as:

  • Home & Auto
  • Digital
  • Diversified & Value
  • Health & Wellness
  • Lifestyle

The bank offers a range of deposit products to retail, affinity, and commercial customers, including:

  • Certificates of deposit
  • Individual retirement accounts (IRAs)
  • Money market accounts
  • Savings accounts
  • Sweep and affinity deposits

The Bank of America target price for the shares is $90.

 

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About the Author Lee Jackson →

Lee Jackson has covered Wall Street analysts' equity and debt research and equity strategy daily for 24/7 Wall St. since 2012. His broad and diverse career, which included a stint as the creative services director at the NBC affiliate in Austin, Texas, gives him unique insight into the financial industry and world.

Lee Jackson's journey in the financial industry spans over 30 years, with nearly two decades as an institutional equity salesperson at Bear Stearns, Lehman Brothers, and Morgan Stanley. His career was marked by his presence on the sell side during pivotal Wall Street events, from the dot.com rise and bubble to the Long Term Capital Management debacle, 9/11, and the Great Recession of 2008. This is a testament to his resilience and adaptability in the face of market volatility.

Lee Jackson’s practical financial industry experience, acquired from a career at some of the biggest banks and brokerage firms, is complemented by a lifetime of writing on various platforms. This unique combination allows him to shed light on the intricacies and workings of Wall Street in a way that only someone with deep insider experience and knowledge can. Moreover, his extensive network across Wall Street continues to provide direct access for him and 24/7 Wall St., a privilege few firms enjoy.

Since 2012, Jackson’s work for 24/7 Wall St. has been featured in Barron’s, Yahoo Finance, MarketWatch, Business Insider, TradingView, Real Money, The Street, Seeking Alpha, Benzinga, and other media outlets. He attended the prestigious Cranbrook Schools in Bloomfield Hills, Michigan, and has a degree in broadcasting from the Specs Howard School of Media Arts.

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