Veteran value investor Bill Nygren is focusing on undervalued stocks with strong shareholder returns. He's seeking companies with low price-to-earnings ratios (under 12x for almost half his portfolio) and robust dividend or share repurchase programs, even if organic growth is limited. Nygren highlights Charter Communications (CHTR) and General Motors (GM) as examples, emphasizing their attractive valuations despite slower growth prospects. Other picks include Global Payments, Ally Financial, and Corebridge Financial. This strategy comes as the S&P 500 trades at 23 times forward earnings.

Prepared by Christopher Adams and reviewed by editorial team.