With the Fed's rate cuts looming, investors would be wise to add some undervalued dividend stocks to their portfolios while maintaining a cautious optimism.The beauty of buying undervalued dividend stocks is that, even if the market takes a dip, these stocks have limited downside, especially the blue-chip ones with lower risk. And if the market continues to soar, these stocks are likely to bounce back in a valuation repair.1.Vale $Vale SA(VALE)$ is probably the most underrated dividend stock in the industrial commodity space. With a forward P/E ratio of just 5.18 and a dividend yield of a whopping 14.28%, this stock is a steal! After being stuck in a sideways pattern for a while, it's primed for an upward breakout.Fundamentally, Vale's diversifie