Two stocks that have seen their dividends reduced and stock prices decline may actually present good buying opportunities right now.
Even in a market that feels stretched, there are stocks available at lower prices. You might need to let go of some expectations and, perhaps, take a contrarian approach since the best deals aren’t usually obvious.
So, are you ready? I find FMC Co., Ltd. and Camping World to be potential hidden gems, poised for a potential recovery. However, it’s crucial to note that both are currently facing challenges, so patience might be key.
1. FMC
FMC specializes in agricultural products like pesticides and herbicides, so one might assume it’s smooth sailing for them. But, surprisingly, their sales and profits have dropped for three years in a row.
Now doesn’t seem like the best time for agricultural stocks, especially since some of FMC’s key products are losing patent protections and facing competition from cheaper generics.
This company previously attracted investors with a nice dividend, but after its significant cut last October, the yield has risen. They had to slash their dividend by 86% due to plummeting free cash flow and a forecast of more challenges in 2026. While that double-digit yield was tempting, it’s now uncertain whether the current 2.3% divvy will stay unless they can grow and tackle their hefty $4 billion debt.
The guidance for 2026 released recently was somewhat vague. Analysts anticipated sales would be around $4 billion, but the company now projects $3.6 to $3.8 billion. Earnings per share expectations dropped significantly, too, falling short of analyst predictions.
Interestingly, FMC’s stock gained 8% on Wednesday amid discussions of strategic options. Could divesting assets help improve their finances? Even if they stay independent, if the business steadies, there might be a promising turnaround ahead. The stock is priced at just 8.5 times forward earnings, suggesting potential for more upside than downside in the near term.
2. Camping World
If an 86% dividend cut feels severe, consider Camping World, which eliminated its distribution completely. Its stock plummeted 17% on Wednesday, reflecting a tough quarter. Less than three years after slashing its dividend by 80%, the yield has skyrocketed to an uncomfortable 86x.
Camping World holds a 13% market share in both new and used vehicles and had a reasonably good year; revenues ticked up in 2025 after several years of decline. Still, the fourth quarter saw a dip in revenue, and the company noted it must reduce its excess inventory in the first half of 2026. They’ve also paused dividends to focus on debt management.
I find Wednesday’s drop a bit excessive. Camping World firmly holds its position as a leader in an industry that will eventually rebound. While it lost the equivalent of several years’ dividends in just a day, I believe it will emerge stronger three years down the line.
