Time To Buy? 5 Beaten-Down Dividend Stocks

Today, I want to tell you about five dividend growth stocks that are down at least 20% from 52-week highs.

The first dividend growth stock I have to tell you about is Algonquin Power & Utilities Corp. - stock ticker AQN. Algonquin Power & Utilities is a utility conglomerate with a market cap of $9 billion. With both renewable and regulated utility assets, mostly spread out across a wide swath of North America, this is a far-reaching utility business that has exposure to both traditional energy and the future of energy. They're positioned well, no matter how fast or slow the clean energy transition plays out. And that bodes well for their ability to continue paying an increasing dividend.

Despite all of that, the stock is down 20% from its 52-week high.

Shares are currently running a bit over $14/each. But the 52-week high is $17.86. The P/E ratio, using adjusted EPS, is slightly over 20 here, which is ludicrously low for a utility business with renewable assets growing this quickly. The five-year average P/E ratio for the stock is 23.1. And even that isn't all that high for a business like this. I'm actually surprised that this stock is priced like this. It's definitely worth taking a good look at after the 20% drop.

I now want to highlight Intel Corporation - stock ticker INTC. Intel is a multinational technology company with a market cap of $207 billion.

This stock has been beaten to a pulp, and it's now down 26% from its 52-week high. Compare the current pricing of under $51/share to the 52-week high of $68.49/share. Yeah, that's a huge gap. Every basic valuation metric here is screaming cheap. For instance, the P/E ratio of 9.9 is well off of its own five-year average of 14.2. Even for a stock that's often cheaper than the market, this is a notable discount. Intel is actually fundamentally excellent across the board. It's only the competitive positioning that's questionable. However, the discount is significant. And you're collecting a safe, growing dividend here. 

Next up, let's talk about Leggett & Platt, Inc. - stock ticker LEG.

It's almost unbelievable, but this Dividend Aristocrat is 25% off of its 52-week high.

I now have to talk about LyondellBasell Industries NV - stock ticker LYB.

This stock is down 21% from its 52-week high, and there could be a great long-term opportunity here. I'm not saying it's going to zoom right back up to its 52-week high of $118.02/share. But shares are currently trading hands for less than $93/each, which puts the valuation in rather attractive territory.

Every basic valuation metric I look at is lower than its respective recent historical average. I already pointed out the yield difference. But then we have the P/CF ratio of 5.8 being well off of its five-year average of 7.0. Meanwhile, this income play is spitting out a big, growing dividend. If your portfolio needs yield, value, and chemicals exposure, this name should absolutely be on your radar.

Last but not least, let's talk about Magna International Inc. - stock ticker MGA.

This stock is down 20% from its 52-week high, and this could be a good entry point for long-term dividend growth investors. At around $83/share, it sure looks a lot better than it did when it hit the 52-week high of $104.28 this past summer. Now, I wouldn't say the stock is extremely cheap here. Most basic valuation metrics are actually still running a bit ahead of their respective recent historical averages, even after the 20% drop. But this is
a great business that operates at a high level, and the valuation is more favorable now than it's been in a while. I wouldn't back up the truck or anything, but I think Magna is at least worth putting on the list for research after the five-month correction.

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