Many investors may be enticed toward undervalued dividend stocks. Indeed, valuation is key for those with a long-term investing time horizon. Acquisition cost and return on investment over time are typically key metrics that matter.

Indeed, many dividend stocks provide distributions that are unsustainable. Accordingly, finding companies that have a robust business model, and will be able to maintain their distribution over the long term, is also important.

These three undervalued dividend stocks meet my criteria of having a reasonable valuation, a strong growth profile, and a meaningful dividend yield. Let’s dive in.

Northrop Grumman (NOC)

Northrop Grumman (NYSE:NOC) is a great buy among blue-chip defense stocks. That’s partly due to the company’s appealing forward price-earnings ratio of 20.4 times and a dividend yield of 1.5%, which puts NOC stock among the undervalued dividend stocks I like right now. This is more true following the company’s robust Q1 2023 earnings, which signal the stock could get cheaper over time if the company performs as expected.

Northrop Grumman’s Q1 sales reached $9.3 billion, representing a 6% year-over-year increase. The company also has a robust order backlog of $77.5 billion, ensuring revenue and cash flow visibility for the future. Northrop’s commitment to shareholder value creation is evident in its $1 billion spending on dividends and share repurchases in Q1.

Northrop Grumman is venturing into the drone technology sector with the creation of autonomous HALE systems, which are currently being developed with a global reach and over 24-hour endurance. These systems are capable of gathering crucial air defense data over both land and sea, enabling informed decision-making.

Agnico Eagle Mines (AEM)

Despite facing cost and workforce challenges, Agnico Eagle Mines (NYSE:AEM) emerged as one of the best gold producers last year, thanks to its superior cost control and expansion projects. The company achieved record margins that surpassed its 5-year averages and aimed to strengthen its position in the most lucrative mining jurisdictions.

Agnico Eagle Mines’ primary focus is on gold production, although it has a pipeline of projects in the U.S. and Colombia aimed at exploring and developing existing mineral deposits to enhance its gold and silver production profile.

Agnico Eagle Mines performed well last year, overcoming cost and workforce challenges and maintaining superior cost control. Despite this, its stock has risen 6.5% in the past year, increasing optimism among potential investors. Despite the company’s substantial earnings valuation, it is an excellent investment because of its strong three-year earnings growth and higher net profit over the majority of its rivals.

Restaurant Brands (QSR)

Restaurant Brands (NYSE:QSR), recognized for its selection of fast food brands, has had a successful year so far, with QSR stock rising over 10% since January 1 at the time of writing. This can be attributed to the company’s defensive stance and the power of its main brands.

Credit Suisse analyst Lauren Silberman’s report on Restaurant Brands International, released on May 3, 2023, suggests an outperform rating on the stock and a price target increase from $74 to $79, indicating that QSR’s stock is expected to outperform the market average, with a projected price increase to $79.

This stock is attractive for its defensive nature and reasonable valuation of 21 times earnings. Additionally, it showed impressive performance in recent quarterly results with 8.5% higher comparable same-store sales year-over-year and growth rates of 180 bps and 40 bps for Popeye’s and Burger King banners, respectively.

Restaurant Brands reported strong financial results, with earnings per diluted share growing by over 21% to $3.25 and sales rising by 13.4% to $6.5 billion. All four of its segments performed well, with three delivering double-digit sales growth. The business’s strong profitability has also allowed it to keep its dividend yield at 3.1%.

On the date of publication, Chris MacDonald had a position in QSR, NOC, AEM. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.