2 Top Dividend Stocks Down More Than 12% That You'll Regret Not Buying

Stock market sell-offs like the one we've experienced this year can be a gift for dividend investors. As stock prices fall, dividend yields rise, meaning investors who buy high-quality dividend stocks during a sell-off can lock in an even more lucrative income stream.

Two top dividend stocks that have sold off this year are Realty Income (NYSE: O) and Brookfield Infrastructure (NYSE: BIPC)(NYSE: BIP). They both have fallen more than 12% from their 52-week high. Here's why dividend investors are likely to regret not buying them amid the current sell-off.

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This elite REIT is on sale

Shares of Realty Income have slumped more than 12% from their 52-week high. The decline has pushed the real estate investment trust's (REIT) dividend yield up to 5.7%. That's a very attractive level for such a high-quality dividend stock.

Realty Income's valuation has become even more attractive with its stock price declining. Last year, the REIT generated $4.19 per share of adjusted funds from operations (FFO). With its stock price recently around $57 each, it trades at only about 13.5 times its FFO. That's a very cheap level for a REIT, as many of its peers trade at more than 15 times their FFO.

Realty Income also has a terrific record of paying dividends. It has increased its payment an impressive 130 times since its public market listing three decades ago. The landlord has unbroken streaks of 30 straight years and 110 consecutive quarters of dividend increases. It has grown its payout at a 4.3% compound annual rate over the past three decades.

The REIT should have no trouble continuing to grow its dividend in the future. It has one of the strongest financial profiles in the REIT sector. That's evident in its top-notch bond rating, as it's only one of eight REITs with two A3/A- credit ratings or better. That gives it unparalleled access to low-cost capital to continue investing in income-generating real estate.

Meanwhile, the globally diversified REIT has a massive investment opportunity. The company estimates that the total addressable market for net lease real estate investments in the U.S. is $5.4 trillion and another $8.5 trillion in Europe. With $58 billion of properties in eight countries, it has an enormous growth runway. It should have no trouble continuing to grow its portfolio and dividend payments in the future.

An unbelievable bargain

Shares of Brookfield Infrastructure have slumped even further, falling more than 21% from their recent peak. That tumble has driven its dividend yield up to 4.9%.

The global infrastructure giant has increased its dividend in all 16 years since its inception. It has grown its payout at a 9% compound annual rate during that period.

Brookfield expects to continue growing its dividend in the future. It's targeting to deliver 5% to 9% annual dividend growth.

It has tremendous future growth prospects. The company estimates that the world will need to invest a staggering $100 trillion into maintaining, developing, and building infrastructure over the next 15 years. That should provide it with plenty of opportunities to expand. It currently has $8 billion of expansion projects under construction and another $4 billion in development.

Capital projects are only one of the company's growth drivers. It also benefits from inflation-driven rate increases, volume growth as the global economy expands, and accretive acquisitions. Brookfield estimates that these catalysts will drive 10%-plus annual growth in its FFO per share in the coming years.

Investors get all that growth and income for a very reasonable valuation following Brookfield's stock price slide. The company generated $3.12 of FFO per share last year. With its stock price recently down to around $35 apiece, Brookfield trades at a little more than 11 times FFO. That's dirt cheap compared with most stocks, as the S&P 500 trades at more than 20 times earnings. Given its robust growth prospects, Brookfield should trade at a much higher valuation multiple.

Top-notch dividend stocks at great prices

The sell-offs in Realty Income and Brookfield Infrastructure have driven down their valuations while boosting their dividend yields. They look like very attractive investments right now, since they should have no trouble continuing to grow their high-yielding dividends. That growth positions them to produce strong total returns over the long term, which is why you'll probably regret not capitalizing on the current sell-off to buy shares.

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Matt DiLallo has positions in Brookfield Infrastructure, Brookfield Infrastructure Partners, and Realty Income. The Motley Fool has positions in and recommends Realty Income. The Motley Fool recommends Brookfield Infrastructure Partners. The Motley Fool has a disclosure policy.