Got $1,000? 2 Wildly Undervalued Dividend Stocks to Buy and Hold Forever

When hunting for discounted investments, one excellent starting point is to look for businesses with dividend yields trading above their five-year averages. Often, this higher-than-normal figure also means that the company's price-to-earnings (P/E) multiple has dropped over recent years, potentially indicating a more reasonable price.

Snap-on (NYSE: SNA) and Lennox International (NYSE: LII) are two companies that fit this bill, with their dividend yields roughly 50% above recent averages. Yet, they both appear to be firing on all cylinders. In fact, over the past decade, Snap-on and Lennox shares have posted market-beating total returns of 230% and 325% -- impressive considering their P/E ratios have compressed over that time to just 14 and 18, respectively.

Source: NASDAQ

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