3 Undervalued Dividend Stocks to Buy on the Dip

"Many retail investors fear selloffs. But if you know where to look, pullbacks can be your best friend. If you look at any stock that pulled off a significant recovery from its trough, your natural reaction is likely "I wish I bought that dip!" However, it's understandable why many refuse to buy the dip. Many stocks that do go down turn into falling knives. When it comes to well-established dividend payers, the equation is in your favor."

"Instead of praying for a recovery, you get paid to wait, and that stream of dividends quietly compounds while the market decides whether it still wants to sit on the sidelines. Chances are, the market will decide to pounce, especially since the economy is sitting at a crossroads. Interest rates are expected to be cut soon, making dividend yields more attractive. Plus, undervalued dividend stocks with established underlying businesses are very likely to rebound in the long run. This gives investors both upside and dividends."

"UnitedHealth Group (UNH) has been facing a myriad of problems in the past year. It started with the Brian Thompson assassination, and it went downhill from there. The company started missing earnings estimates, withdrew its guidance and the group's CEO resigned. The latest earnings report kept investors in limbo as it missed estimates again, without giving investors a concrete outlook on where things were heading for the year. However, the stock is up nearly 28% over the past month"

Retail investors often fear selloffs, but pullbacks can present buying opportunities when investors know where to look. Well-established dividend payers provide ongoing income while share prices recover, allowing dividends to quietly compound over time. Expected interest-rate cuts will likely make dividend yields more attractive versus cash and bonds. Undervalued dividend stocks with established underlying businesses have a strong chance of rebounding in the long run, delivering both capital upside and dividend income. UnitedHealth Group has experienced operational and leadership setbacks, missed earnings and withdrawn guidance, yet the stock climbed nearly 28% over the past month.

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