3 Dividend Stocks Down 20% or More to Buy Hand Over Fist Right Now

Income investors can look at the proverbial glass of water as half-full amid intense stock market volatility. The turbulence presents great opportunities to scoop up shares of companies that pay solid dividends.

Some of those opportunities look especially attractive. Here are three dividend stocks down 20% or more to buy hand over fist right now.

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1. Energy Transfer LP

Energy Transfer LP (NYSE: ET) is on the bubble to qualify for this list. Units of the limited partnership (LP) have fallen just a hair over 20% from the previous high earlier this year. I think Energy Transfer is oversold, though.

This midstream energy leader's business should hold up quite well even if President Trump's steep tariffs remain in place. Fortunately for Energy Transfer (and its unitholders), its revenue doesn't fluctuate based on the prices of the oil and gas that flow through its pipelines.

Even better, the demand for the company's pipelines and other midstream assets should grow over the next several years. Rising adoption of artificial intelligence (AI) is creating a need for more data centers, which require a lot of electricity. Natural gas is a top source of fuel for the power plants that produce the electricity needed by those data centers.

Meanwhile, Energy Transfer offers an exceptionally juicy forward distribution yield of 7.73%. The LP expects to increase its distribution by 3% to 5% annually.

2. Occidental Petroleum

Occidental Petroleum's (NYSE: OXY) share price has dropped roughly 28% below its high set earlier this year. However, the oil and gas stock's decline began in the first half of 2024.

This sell-off has made Oxy a bargain buy, in my view. Its forward price-to-earnings multiple now stands at 11.8. The average S&P 500 energy stock trades at 13.6 times forward earnings.

Warren Buffett wrote to Berkshire Hathaway shareholders last year, "We particularly like [Occidental's] vast oil and gas holdings in the United States, as well as its leadership in carbon-capture initiatives, though the economic feasibility of this technique has yet to be proven." I agree with Buffett's take on Oxy. The company's industry position and its leadership in carbon capture and storage technology are appealing.

I don't think it's surprising that Buffett listed Occidental as one of only a handful of stocks he plans to "maintain indefinitely." I also expect the legendary investor will buy more shares of Oxy, as he has done in most quarters since early 2022.

One positive side effect of Occidental's sell-off is that its dividend is more attractive than it's been in quite a while. Oxy's forward dividend yield now tops 2.5%.

3. United Parcel Service

Shares of United Parcel Service (NYSE: UPS) have fallen around 27% below the high from earlier this year. The package delivery giant's stock is nearly at the same level it was during the early part of the COVID-19 pandemic in 2020. I think UPS is a better investment choice than its stock chart shows.

Many investors are concerned that UPS is reducing its volume with Amazon, the company's biggest customer, by more than 50% by the second half of 2026. However, I understand the logic behind this shocking move. UPS doesn't generate as much profit margin from the Amazon business as it would like. Management believes that the company will become more profitable by cutting costs related to supporting Amazon while replacing some of the lost business with higher-margin shipments.

I think UPS' business will hold up well over the long term. The barriers to entry to compete against the company are high. The need for tighter supply chains and increased e-commerce should provide tailwinds for UPS.

Income investors should like UPS' forward dividend yield of 6.65%. And they should love that the company has increased its dividend payout for 16 consecutive years and has never cut its dividend since its initial public offering in 1999.

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Keith Speights has positions in Berkshire Hathaway, Energy Transfer, and United Parcel Service. The Motley Fool has positions in and recommends Berkshire Hathaway. The Motley Fool recommends Occidental Petroleum and United Parcel Service. The Motley Fool has a disclosure policy.