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Three Dividend Stocks on Sale: Down 33% to 65% Worth Considering Now

Three Dividend Stocks on Sale: Down 33% to 65% Worth Considering Now

Quarterly Dividend Income and Top Consumer Brands

Quarterly dividends can provide some relief during stock market downturns. Companies like Constellation Brands, Hershey, and Target have strong businesses that sustain their ability to pay dividends to shareholders.

Even though these companies are facing short-term challenges, their high dividend yields are supported by their earnings. In the midst of market volatility, it’s quite reassuring to regularly add cash to your brokerage account, especially since some major consumer brands are offering attractive yields. So, if you’re looking for opportunities to improve your passive income, here are three notable consumer brands with yields between 2.91% and 4.89%.

Constellation Brands (NYSE: STZ) saw its stock drop 49% from its recent peaks due to economic pressures. But hey, people have been drinking beer for millennia, and that’s not going to change anytime soon. So, this could indeed be a good time to consider buying in.

Constellation is behind some of Mexico’s leading beer imports. Brands like Modelo and Corona are among the top sellers in the U.S., and their new product, Corona Sun Brew, has quickly gained popularity. While full-year adjusted sales are projected to dip slightly, the dividend remains secure for income-seeking investors. The quarterly payout of $1.02 is well covered by an expected annual adjusted profit of $11.51, leading to a future dividend yield of 2.91%, which is quite appealing.

Hershey (NYSE: HSY) faces its own set of temporary challenges—rising cocoa prices and poor harvests have increased costs, resulting in a 33% decline from its all-time high. However, the downturn has also made its yields more attractive, potentially marking a good buying season.

With a legacy of over a century, Hershey continues to be a favorite among consumers, generating $11 billion in snack sales. In the second quarter of 2025, the company reported robust sales, which helped it capture a larger portion of the U.S. candy market. Hershey has been consistent with dividends for 95 years, underscoring its stability. Despite recent supply chain hurdles, its quarterly dividend of $1.37 is backed by expected annual earnings of $5.49, projected to grow to $6.80 by 2026. This represents a rare chance to invest in this beloved brand at a favorable future yield of 2.97%.

Now, shifting gears a bit, let’s discuss Target (NYSE: TGT), which has witnessed a 65% drop from its previous high largely due to weak sales and tariffs. Nonetheless, it has been an excellent dividend payer since 1967. Currently, Target boasts the highest yield among the trio but distributes roughly half of its profits.

Although sales dropped by 1% last quarter, this setback is expected to be temporary. Target has weathered numerous economic challenges, including the Great Depression, and it remains profitable as of 2025.

With a quarterly dividend of $1.14 and annual earnings projected at $7.34, its forward yield stands at 4.89%. This is a resilient retail operation that has demonstrated effective inventory management and consistent profitability, which support its dividend payments.

Before diving into investing in Constellation Brands, it’s worth considering that there may be other opportunities available—like those identified by our analyst team, who suggest there are stocks with strong potential that don’t include Constellation.

When weighing your options, it’s always prudent to do your homework. Investing shouldn’t be rushed; rather, it’s often beneficial to take your time and evaluate where you believe your dollars could work best for you.

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