4 Fallen Dividend Stocks to Buy in 2025: Bargain Picks with Yields & Growth Potential

Business Investors
07 april 2025

As market volatility increases and investors brace for broader corrections, dividend stocks—typically seen as a safe haven—are also feeling the pressure. But for long-term investors, price declines can create unique buying opportunities. In this post, you’ll discover four dividend stocks that have recently dropped as much as 55% in value, making them more attractive for income and potential capital appreciation. We’ll dive into each company’s valuation, dividend history, and growth outlook so you can make an informed decision.

Let’s break it down.


1. Toro Company (NYSE: TTC)

Dividend Yield: ~2%
Price Drop: ~33% from recent highs
Opportunity Score: Medium-High

Toro isn’t just about lawn mowers. This 100-year-old company supplies turf maintenance equipment, irrigation systems, and snow removal tools for both consumers and businesses. It’s also an active acquirer, snapping up smaller firms to grow its portfolio and expand reach.

While its dividend yield is modest, the real value here lies in the company’s long-term strategy and current valuation. Toro’s forward price-to-earnings (P/E) ratio is around 18, below its 20-year average of 20. That’s a sign the market isn’t fully appreciating its profitability and growth potential.

Valuation Snapshot:

  • Morningstar gives Toro a 4-star rating with a fair value estimate above the current price
  • Analyst upside potential is around 18%
  • EPS growth projections are ~8% annually

Dividend Strength:

  • 21 consecutive years of dividend increases
  • 35 years of consistent dividend payments
  • 5-year dividend growth rate of ~10%

What to Watch:
Toro’s total debt is relatively high due to its acquisition-heavy model. However, return on equity and invested capital remain strong, signaling efficient use of capital.

Bottom Line:
Toro is a solid long-term dividend play. Not the cheapest stock out there, but the consistent returns and dividend growth make it a strong candidate for patient investors.

2. Deluxe Corporation (NYSE: DLX)

Dividend Yield: ~7%
Price Drop: ~80% from 2018 highs
Opportunity Score: Medium (but high risk)

Deluxe Corporation, known for check printing in the past, has evolved into a B2B payment and data company. Despite a modernized business model, the market is still treating DLX like it’s stuck in the past.

With a P/E ratio under 6, this stock screams "cheap"—but there’s a catch. High debt levels and flat revenue growth raise red flags. Analysts give it a fair value estimate of $23, compared to a current price around $14, representing a potential upside of ~64%.

Valuation Snapshot:

  • Morningstar gives it a 5-star rating
  • P/E as low as 5; forward P/E around 10
  • Price-to-cash-flow is extremely low

Dividend Strength:

  • 25 consecutive years of dividend payments
  • Yield sits at 7%, with a relatively low payout ratio
  • No significant dividend growth in recent years

What to Watch:
High total debt, low profit margins (~2.5%), and negative EBITDA growth next year. Despite this, EPS is projected to grow significantly.

Bottom Line:
DLX may be undervalued or it could be a classic value trap. The dividend yield is enticing, but you’ll need to dive deeper into the company’s financial health before buying. Not for the faint of heart.

3. Tyson Foods (NYSE: TSN)

Dividend Yield: ~3%
Price Drop: ~35% from recent peak
Opportunity Score: Medium

Tyson Foods is a global protein powerhouse, with brands spanning beef, chicken, pork, and prepared foods. After a multi-year decline, TSN has started recovering. Still, the valuation remains appealing for long-term investors.

Analysts expect modest gains in the short term with a potential 7% upside, though some outlier projections suggest 25%-plus EPS growth in 2027.

Valuation Snapshot:

  • Morningstar’s fair value estimate is $80, higher than current price
  • P/E ratio: ~13.5 (historical average is closer to 15)
  • PEG ratio below 1, indicating undervaluation relative to growth

Dividend Strength:

  • 35 consecutive years of dividend payments
  • 13 years of dividend growth
  • Current payout ratio under 70%, indicating sustainability

What to Watch:
Tyson’s net margin is just ~2%, and debt levels are relatively high. That said, the company is showing signs of recovery with projected EPS growth around 20% over the next 3-5 years.

Bottom Line:
Not a premium business, but a potentially attractive dividend play with upside. Think of it as a steady, slow-burn stock where you’re paid to wait.

4. Target Corporation (NYSE: TGT)

Dividend Yield: ~4%
Price Drop: ~55% from all-time highs
Opportunity Score: High

Target is one of the most recognizable retail brands in the U.S. Yet, despite strong branding and financial discipline, its stock has been battered—down over 50% from recent highs. For dividend investors, this may signal an attractive entry point.

Morningstar gives it a 3-star rating, with a fair value estimate above the current price. Analysts see ~22% upside, with the potential for 18% annual returns based on current earnings projections and valuation.

Valuation Snapshot:

  • Forward P/E ratio: ~12.5 (below historical norms)
  • Price-to-cash-flow is low
  • PEG ratio supports undervaluation narrative

Dividend Strength:

  • 56 years of consecutive dividend increases—Target is a Dividend King
  • 5-year dividend growth of ~11%
  • Yield around 4% with a safe payout ratio

What to Watch:
While growth is slowing, Target's return on equity and invested capital are surprisingly strong. If the stock dips to ~$100/share, it could offer a 60% upside if it rebounds to former highs.

Bottom Line:
With a rock-solid dividend track record, attractive valuation, and a recent 55% drop, Target is one of the more compelling dividend plays in today’s market. Not a hyper-growth story, but great for income-seeking investors.

Final Thoughts: Timing the Market vs. Time in the Market

Dividend investing is about more than yield. It's about finding quality businesses that reward shareholders over time—and buying them at attractive valuations. The stocks covered here—Toro, Deluxe, Tyson Foods, and Target—each have unique risks and rewards. But they all share one thing: a price decline that could set the stage for future gains.

Of course, every stock requires your own due diligence. Dig into the financials, understand the business model, and think long term.

If you’re building a dividend portfolio in 2025, these four fallen stocks are worth a second look.

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