If you're a dividend investor with a leaning toward value investing, you'll want to do a deep dive on (NYSE: MDT), Texas Instruments (NASDAQ: TXN), and, perhaps, even Stanley Black Decker (NYSE: SWK). Here's why these three out-of-favor stocks are worth doubling down on now, before investors start to realize the opportunity they present.

Medtronic is one of the largest medical device makers on the planet. It operates in the cardiovascular, neuroscience, medical-surgical, and diabetes areas of the healthcare sector. Right now the stock is yielding a historically high 3.2%, suggesting that the shares are on sale. The dividend has been increased annually for 46 consecutive years, however, so this is no fly-by-night company, and it has proved that it places a high priority on returning value to shareholders through dividends.

But why is the dividend yield so high? The simple answer is that Medtronic has been having trouble getting new products over the finish line with regulators. If a product doesn't get approved, all of the money spent on research and development is effectively wasted. However, the backlog of products needing approval is working through the system and with positive outcomes. That's good, but now investors are worried about the impact that mass adoption of new weight-loss drugs might have on Medtronic's business. The company believes the fear is overblown, and investors with a long-term view should probably give management the benefit of the doubt on this one, focusing instead on the success with approvals. Although the current fiscal year might not be the best for Medtronic, the long-term future still looks pretty bright.

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Source Fool.com