The idea behind value investing is to buy assets for less than they are worth. The larger the discrepancy between price and value, the bigger the margin of safety.

Stocks trading at a discount to their assets usually do so for a reason. They tend to be out of favor and surrounded by negative sentiment. Unfortunately, undervalued stocks do not rebound just because you buy them. The market doesn’t care when you purchase a security.

Some value securities may rebound to fair value in a month, others may take years, or may never rebound at all. Waiting for your value stocks to appreciate can be fraught with both anxiety and disappointment.

Therefore, we recommend combining investing in undervalued securities with investing in securities that have high and growing yields. The following 3 value stocks are also paying strong dividends above the market average.

H2O America (HTO)

H2O America, formerly known as SJW Group, is a water utility company that produces, purchases, stores, purifies and distributes water to consumers and businesses in the Silicon Valley area of California, the area north of San Antonio, Texas, Connecticut, and Maine.

It also has a small real estate division that owns and develops properties for residential and warehouse customers in California and Tennessee. The company generates about $670 million in annual revenues.

On July 8th, 2025, H2O America announced that it purchased Quadvest for $540 million. This purchase adds to the company’s position in the Houston area.

Quadvest has 50,500 active connections, almost 91,000 connections under contract and pending development, 50 water treatment plants, 27 wastewater treatment plants, and 89 lift stations and underground assets.

On July 28th, 2025, H2O America announced second quarter results for the period ending June 30th, 2025. For the quarter, revenue grew 12.5% to $198.3 million, which was $10.9 million more than expected.

Earnings-per-share of $0.71 compared favorably to earnings-per-share of $0.66 in the prior year and was $0.01 ahead of estimates. For the quarter, higher water rates overall added $17.6 million to results and higher customer usage added $4.9 million. Operating production expenses totaled $154.4 million, which was a 14% increase from the prior year.

HTO has increased its dividend for 57 consecutive years and currently yields 3.4%.

Constellation Brands (STZ)

Constellation Brands was founded in 1945. The company produces and distributes alcoholic beverages including beer, wine, and spirits. It is the third largest beer company in the U.S., and imports and sells beer brands such as Corona, Modelo Especial (the #1 Beer in U.S.), Modelo Negra, and Pacifico.

In addition, Constellation has many wine brands including Robert Mondavi and Kim Crawford, as well as spirits brands including Casa Noble Tequila, and High West Whiskey. The company also has a stake in cannabis company Canopy Growth.

In June 2025, Constellation completed its divestiture of some of its wine and spirits brands to The Wine Group. The brands divested include Woodbridge, Meiomi, Robert Mondavi Private Selection, Cook’s, SIMI, and J. Roget sparkling wine, as well as its inventory, facilities, and vineyards. Constellation retained its high-end wine and spirits brands.

On July 1st, 2025, Constellation Brands reported first quarter fiscal 2026 results for the period ending May 31, 2025. For the quarter, the company recorded $2.52 billion in net sales, down 6% compared to the same prior year period. Beer sales fell 2% year-over-year, while wine and spirits sales plunged 28%.

Comparable earnings-per-share equaled $3.22 for the quarter, which was 10% lower compared to Q1 2025, and $0.07 behind analyst estimates. In the first quarter, Constellation Brands repurchased $306 million of its shares and paid $182 million in dividends.

STZ has increased its dividend for 10 consecutive years and currently yields 2.5%.

Westlake Corporation (WLK)

Westlake Corporation is a global manufacturer and supplier of petrochemicals, polymers, and building products. Founded by Ting Tsung Chao in 1986, the company operates through two segments: Performance and Essential Materials (PEM) and Housing and Infrastructure Products (HIP).

The Performance and Essential Materials segment produces a wide range of products, including polyethylene, polypropylene, specialty polymers, and vinyl resins, used in various consumer and industrial markets such as packaging, automotive, and construction.

The Housing and Infrastructure Products segment manufactures and sells a range of building products, including roofing materials, siding, and other products used in construction.

On August 5th, 2025, Westlake Corporation reported second-quarter 2025 of Q2 -$0.09 missing market estimates by $0.15 and revenues of $2.95 billion, which were down 8.1% sequentially.

Included in results were $130 million in charges tied to the closure of its Pernis epoxy facility in the Netherlands and temporary shutdown of a PVC resin unit in China. Excluding these items, the net loss narrowed to $12 million, or $0.09 per share, compared to a profit of $313 million a year earlier.

EBITDA excluding identified items came in at $340 million, down from $744 million in the prior year, but up $52 million sequentially, driven by seasonal strength in the Housing and Infrastructure Products (HIP) segment, where sales rose 16% quarter-over-quarter.

The Performance and Essential Materials (PEM) segment faced a 9% year-over-year sales volume decline, impacted by weaker global demand, tariff uncertainty, and plant outages, contributing to a $188 million operating loss versus a $157 million profit last year.

WLK has increased its dividend for 20 years and currently yields 2.5%.

Disclosure: No positions in any stocks mentioned

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Bob Ciura has worked at Sure Dividend since October 2016. He oversees all content for Sure Dividend and its partner sites. Bob received a Bachelor’s degree in Finance from DePaul.