Buying a dividend stock at a cheap valuation can be a great move for several reasons. Three stocks that may be underrated options for dividend investors to consider today are PepsiCo (NASDAQ: PEP), United Parcel Service (NYSE: UPS),

These blue-chip dividend stocks have solid fundamentals and growing earnings bases that support their payouts.

If any investor has stood the test of time, it is Warren Buffett, and with good reason. For years, the “Oracle of Omaha” has had a rock-star-like presence in the investing world, and his annual Berkshire Hathaway shareholders meeting draws thousands of loyal fans who are investors.

Blue-chip stocks are well-loved not just for their stability, but also their ability to continue to grow amid tough times. These are the reasons why such stocks form the bedrock of many investors’ portfolios.