Blue-chip stocks offer regular cash inflow through dividends. Investors look for undervalued growth stocks for multi-bagger return potential than dividends. Interestingly, growth stocks also offer regular dividends.

These stocks are worth holding in the portfolio for two reasons. First, being undervalued, the upside potential is significant.

Since the companies are at an early growth stage, there is a strong case for robust dividend growth. If these stories click, total returns can be significantly higher even as compared to other growth stocks.

Of course, these undervalued growth stocks are not a replacement for the core portfolio blue-chip dividend stocks. However, these stocks can be future dividend aristocrats if business developments remain positive.

Let’s discuss three undervalued growth stocks that can deliver high total returns.

Albemarle Corporation (ALB)

The decline in lithium price in the recent past has translated into a correction for Albemarle Corporation (NYSE:ALB).

However, the demand for lithium is likely to trend higher in the long term.

ALB stock is among the undervalued growth stocks to buy at a forward price-earnings ratio of 6.5. The stock also offers a dividend yield of 0.8% and I expect healthy dividend growth in the coming years.

In terms of growth, Albemarle reported 120% growth in revenue on a year-on-year basis for 2022. For the current year, the company has guided for revenue growth in the range of 55% to 75%.

With this expected growth, I would not be surprised if ALB stock doubles in the next 12 months.

It’s also worth noting that Albemarle has guided for sustained upside in lithium conversion capacity through 2027. Once lithium price trend reverses on the upside, there is a strong case for robust free cash flows, which will support the dividend growth thesis.

Kinross Gold (KGC)

With gold trading above $2,000 an ounce, it’s a good time to buy gold mining stocks. Among growth stocks, Kinross Gold (NYSE:KGC) stock looks undervalued at a forward price-earnings ratio of 19.8. The stock also offers a dividend yield of 2.38%.

An important point to note is that Kinross has guided for stable gold production through 2025. However, there are two reasons to believe that revenue and cash flow growth will be strong.

First, gold is in an uptrend and with a higher realized gold price, cash flows will swell. For Q4 2022, Kinross reported free cash flow of $157.5 million. The company might well be on-track for annual FCF over $700 million.

Kinross closed 2022 with a total liquidity buffer of $1.8 billion. The company has ample flexibility for acquisition driven growth. I must mention that Kinross had to sell Russian assets in 2022 because of geopolitical reasons. That’s likely to be compensated with an opportunistic acquisition.

Amdocs Limited (DOX)

Amdocs (NASDAQ:DOX) is among the hidden gem undervalued growth stocks. DOX stock has silently moved higher by 16% in the last 12 months.

However, at a forward P/E of 16.2, the stock looks attractively valued. Additionally, DOX stock has a dividend yield of 1.82% and I expect healthy dividend growth.

As an overview, Amdocs is a provider of software services and solutions to the media and communication industry.

Last year, the company reported revenue of $4.58 billion with 75% recurring revenue. Amdocs believes that by 2025, the total addressable market for its solutions will be $57 billion. Therefore, there is ample headroom for growth.

Amdocs is investing $1 billion in its next-generation cloud platform. This is likely to deliver accelerated revenue growth. The company stands to benefit from the rising adoption of 5G.

Another point worth noting is that Amdocs reported free cash flow of $600 million in 2022. For the current year, the company has guided for FCF of $700 million. As FCF swells, dividend growth will be healthy.

On the date of publication, Faisal Humayun did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.