Hi, I'm Susan Chinsky, co-host of the Morning Filter podcast. On a recent episode, Morning Star's chief US market strategist Dave Sakara talked about several undervalued stocks he liked of companies with winning brands. You can find a link to the episode below this video.Today, we're adding two more stocks to the list. The stocks of both of these companies with popular brands are trading below what Morning Star thinks they're worth. Our first great stock with powerful brands trading an attractive price is K ...

Group 1: Diageo - Diageo is known for brands like Guinness, Captain Morgan Rum, and Crown Royal Canadian Whiskey, and it pays a semiannual dividend with a yield of 4.4% based on recent payments [1][2] - The company pays out approximately 50% of its earnings as dividends, which is standard for its industry [2] - Analysts forecast an 18% increase in the annual dividend by 2029, with the stock currently trading at a discount of over 25% to its fair value estimate of $130 per ADR share [3] Group 2: GlaxoSmithKline (GSK) - GSK has historically paid out about 70% of normalized earnings as dividends, which has limited its ability to reinvest in R&D and acquisitions [4] - Following the divestment of its consumer group in 2022, GSK lowered its dividend to a more appropriate level, which is now considered secure and likely to grow in line with earnings over the next 5 years [4] - GSK's US ADR shares provide a quarterly payout of $0.32, translating to an annual dividend rate of $1.70 and a yield of 3.7%, with the stock trading at a 20% discount to fair value [5] Group 3: Kimberly-Clark - Kimberly-Clark is a leading manufacturer in the tissue and hygiene space, recognized as both a dividend aristocrat and a dividend king, having increased its annual dividend payout for 53 consecutive years [6] - The company announced a 3.3% dividend hike for 2025, consistent with its 5-year annualized dividend growth rate of 3.4% [6] - The stock currently yields 4.3%, slightly above its 5-year average, and the long-term outlook calls for mid-single-digit annual dividend growth [7]