In a market dominated by tech giants and high-flying growth stocks, dividend stocks have found themselves somewhat sidelined. The recent market rally has largely bypassed many stalwarts of steady income, leaving quality dividend names trading at highly compelling valuations. This setup, however, likely presents a great opportunity for investors eyeing steady income and long-term gains. Thus, it’s a great idea to have at least one dividend stock in your portfolio.

More specifically, fixed-income investments could lose some of their shine, with potential interest rate cuts looming in late 2024 or early 2025. Historically, lower interest rates tend to drive investors towards dividend-paying stocks in search of yield. This transition could reignite interest in these often overlooked investments, potentially driving their prices higher.

Given this high-probability scenario, identifying and considering buying quality dividend stocks with healthy fundamentals today should prove fruitful. The three stocks I gathered for this article offer attractive yields and trade at attractive valuations, signaling upside potential. Further, each of these companies boasts a strong track record of consistent dividend payments, which further adds to their overall attractiveness.

Top Dividend Stock: Franklin Resources (BEN)

One of the most ignored, high-quality dividend stocks to buy today seems to be Franklin Resources (NYSE:BEN). The global investment management company has seen its stock decline by roughly 20% over the past year, underperforming the overall market by a wide margin. Interestingly, this past year’s decline marks an extension to the stock’s prolonged share price decline that has lasted nearly a decade.

Despite the stock’s protracted underperformance, Franklin has consistently posted robust results, maintaining high profitability throughout the years. Its enduring strength is not surprising, with the company already boasting an outstanding 44-year-long track record of consecutive dividend increases. Clearly, this showcases Franklin’s lasting ability to thrive and reward shareholders over the long term.

With management consistently raising the dividend despite a decreasing share price, the stock now boasts a yield of 5.3%. Thus, BEN stock likely offers a compelling opportunity, especially ahead of any anticipated interest rate cuts in the upcoming quarters. Moreover, its forward P/E ratio of about 9.0X reinforces its bullish outlook, particularly noteworthy as it currently stands near its lowest levels in the past two decades.

Universal Corporation (UVV)

Recently, I’ve been eyeing another dividend stock that appears to be a fantastic value at its current price point: Universal Corporation (NYSE:UVV). With a market capitalization of just above $1.2 billion, Universal Corporation is a company with which few investors are familiar. However, it boasts a rich history and an impressive track record, including a 54-year dividend growth track record.

For context, Universal supplies tobacco leaves to industry giants like Altria (NYSE:MO) and British American Tobacco (NYSE:BTI). Its strong, long-standing partnerships with these major tobacco companies ensure steady cash flows bolstered by the relative recession-proof nature of the tobacco industry itself.

In recent years, Universal has diversified away its operations while maintaining a leading presence in the tobacco leaves space. Universal has ventured into plant-based ingredients and food products, improving its growth prospects as the market for combustible tobacco products declines. Despite these changes, the core tobacco segment remains a reliable cash cow during this transition.

Following Universal’s recent decline, the stock is now attached to an attractive dividend yield of 6.6%. Further, with its recent investments driving earnings growth, the stock is now trading at just 10.3X last year’s earnings-per-share (EPS), offering both substantial income and solid upside potential.

Atlantica Sustainable Infrastructure (AY)

I’ll finish this list of dividend stocks to buy with Atlantica Sustainable Infrastructure (NASDAQ:AY). Despite being a prominent U.K.-based renewable energy project owner, the stock has failed to attract any meaningful investor interest during the overall market’s enduring rally. At just over $20, the stock remains somewhat depressed, which seems quite strange given Atlantica’s numerous appealing attributes.

Given its high yield of 8.1% and beaten-down share price, one could question the safety of its investment case. Nevertheless, such worries are largely unfounded. This is because Atlantica boasts a diversified asset portfolio backed by Power Purchase Agreements (PPAs) with an average weighted duration of 13 years. These agreements with reliable off-takers guarantee a stable and predictable revenue stream. This is proven by the fact that Atlantica has increased its dividend annually since 2014, a leading track record amongst its renewable energy peers.

Something to watch out for if you decide to invest in Atlantica is making sure you use the correct valuation approach for the stock. Earnings-based valuations can be deceiving due to significant depreciation and amortization in the company’s income statement. Rather, focus on Cash Available for Distribution per Share (CAFD/share), which landed at $2.03 last year.

I expect similar levels in FY2024, implying a P/CAFD of 10.9X. Given Atlantica’s multi-year cash flow visibility and other qualities, I believe this multiple undervalues the stock severely. Along with its rich yield, Atlantica seems like a compelling dividend stock to buy today.

On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.

On the date of publication, Nikolaos Sismanis held a LONG position in BTI. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.