In this article, we will take a look at some of the best beaten-down dividend stocks.
Dividend-paying stocks have traditionally been a reliable source of income for investors, though their performance has recently lagged. Since the start of 2025, the S&P 500 Dividend Aristocrats Index has gained just over 2.5%, compared with nearly 13% for the broader market.
Howard Silverblatt, Senior Index Analyst at S&P Dow Jones Indices, noted that dividend growth remained slow in the third quarter of 2025. He explained that uncertainty surrounding evolving tariff policies and their potential impact on sales, costs, and the overall economy made companies cautious about future cash commitments. While most firms continued to raise dividends, the increases were smaller among those that typically do so on a set schedule. Others that do not follow a fixed schedule appeared to delay their actions for the time being.
Silverblatt further made the following comment:
“Given the start of tariff and policy clarity in Q3, companies may increase their payouts but still require more legislative and executive assurances for forward, long-term dividend commitments. Current tax and write-off benefits from the ‘One Big Beautiful Bill’ have added to corporate earnings; as expected increased tax refunds for consumers (starting in February 2026) has permitted increased sales expectations, giving companies short-term assurances but not the longer-term confidence for larger dividend commitment.”
With this in mind, we will now take a look at some of the best beaten-down dividend stocks.
Our Methodology
For this list, we used a stock screening tool to identify stocks that are delivering negative returns in 2025. From that group, we picked dividend stocks with YTD share price declines of over 25%, as of the close of October 16. The stocks are ranked according to their share price decline.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
10. Edison International (NYSE:EIX)
YTD Drop in Share Price as of October 16: 29.11%
Edison International (NYSE:EIX) is among the beaten-down dividend stocks to invest in. The stock has declined by over 29% since the start of 2025.
Edison International (NYSE:EIX), based in California, operates as an energy holding company that provides clean and reliable electricity as well as related services through its main subsidiaries, Southern California Edison Company (SCE) and Trio. The company faced a challenging start to the year, as a series of wildfires in California put pressure on its stock. Southern California Edison, which supplies power to the greater Los Angeles area, has been at the center of this issue.
At the end of July, Edison International (NYSE:EIX) reported lower second-quarter earnings, citing increased operating costs and ongoing investigations tied to the Los Angeles wildfires. The January fires burned tens of thousands of acres, marking what could be the most expensive natural disaster in US history, and drawing heightened scrutiny toward the region’s utility providers.
Even so, analysts remain cautiously optimistic. On October 16, TD Cowen began coverage on Edison International (NYSE:EIX) with a Buy rating and a price target of $71.00, suggesting a potential upside of about 25% from its current level.
In addition to its growth prospects, Edison International (NYSE:EIX) is recognized as a reliable dividend payer, having increased its dividend for 21 consecutive years. The company offers a quarterly dividend of $0.8275 per share and has a dividend yield of 5.84%, as of October 16.
9. Bath & Body Works, Inc. (NYSE:BBWI)
YTD Drop in Share Price as of October 16: 31.39%
Bath & Body Works, Inc. (NYSE:BBWI) is one of the most beaten-down dividend stocks to invest in. The stock has fallen by over 31% since the start of 2025.
On October 13, Jefferies lowered its price target for BBWI from $32.00 to $28.50, while keeping a Hold rating on the stock. The firm observed that the company has made little headway in cutting back on promotional activity, both online and in stores. Despite management’s stated goal of relying less on discounts, new product releases are still being marked down soon after launch.
Jefferies also pointed out that the recent Disney Villains collection did not perform as well as the earlier Disney Princess collaboration, raising concerns about Bath & Body Works, Inc. (NYSE:BBWI)’s ability to sustain growth through product innovation rather than constant discounting.
Their research indicated that customer traffic, both in stores and online, has shown minimal improvement following new launches, suggesting that innovation alone has yet to meaningfully lift engagement.
Considering the continued dependence on promotions, the mixed results of new products, and the uncertain economic backdrop, Jefferies expects limited short-term growth in Bath & Body Works, Inc. (NYSE:BBWI)’s sales and margins.
That said, Bath & Body Works, Inc. (NYSE:BBWI) has been a consistent dividend payer, as the company has paid regular payouts to shareholders since initiating its dividend policy in 2021. Currently, it offers a quarterly dividend of $0.20 per share and has a dividend yield of 3.08%, as of October 16.
8. Matson, Inc. (NYSE:MATX)
YTD Drop in Share Price as of October 16: 31.89%
Matson, Inc. (NYSE:MATX) traces its roots to the late 1800s when it was established to connect the US West Coast with Hawaii. Over time, it has grown into one of the leading carriers serving US Pacific territories and Alaska, while also providing expedited shipping between the US mainland and China.
Matson, Inc. (NYSE:MATX) continues to face headwinds from market volatility and global trade uncertainty driven by tariffs. In the second quarter of 2025, operating income from its Ocean Transportation segment declined compared to the previous year, mainly due to lower shipping volumes in its China service. Freight demand dropped sharply in April following the introduction of tariffs, but began to recover by mid-May after the US and China reached a temporary agreement to reduce tariff levels.
Looking forward, management expects continued uncertainty surrounding tariffs, global trade policies, regulatory changes, and broader economic and geopolitical developments. For the third quarter of 2025, Matson, Inc. (NYSE:MATX) anticipates that Ocean Transportation operating income will be significantly lower than the $226.9 million reported in the same period of 2024, primarily as a result of weaker freight rates.
Despite these challenges, Matson, Inc. (NYSE:MATX) remains attractive to income-focused investors with 13 consecutive years of dividend growth under its belt. The company pays a quarterly dividend of $0.36 per share and has a dividend yield of 1.53%, as of October 16.
7. Accenture plc (NYSE:ACN)
YTD Drop in Share Price as of October 16: 32.9%
Accenture plc (NYSE:ACN) is among the best beaten-down dividend stocks with a share price drop of nearly 33% since the start of 2025.
On October 16, Stifel reaffirmed its Buy rating on Accenture plc (NYSE:ACN) and set a price target of $315.00, noting that the company continues to face challenges related to the transition toward artificial intelligence and broader economic conditions. The firm pointed out that the company’s projected organic revenue growth of around 2% for fiscal 2026 is roughly 350 basis points below its pre-pandemic average, or about 200 basis points lower if DOGE-related pressures are excluded.
According to Stifel, two major factors are weighing on Accenture plc (NYSE:ACN)’s performance: persistent macroeconomic headwinds that are unlikely to ease soon, and the high costs and complexity tied to adopting AI technologies. However, these issues are expected to lessen over time. The research firm reviewed three past periods of significant technological change that initially created uncertainty but ultimately led to recovery within 12 to 24 months.
Despite the near-term hurdles, Accenture plc (NYSE:ACN) remains a dependable dividend payer, with 15 consecutive years of dividend growth under its belt. The company offers a quarterly dividend of $1.63 per share and has a dividend yield of 2.79%, as of October 16.
6. Conagra Brands, Inc. (NYSE:CAG)
YTD Drop in Share Price as of October 16: 33.9%
With a share price drop of nearly 34% in 2025 so far, Conagra Brands, Inc. (NYSE:CAG) is among the beaten-down dividend stocks to invest in.
On October 2, RBC Capital reaffirmed its Sector Perform rating and $22.00 price target on CAG following the company’s latest quarterly results. The firm described the report as “better than feared,” noting that both revenue and margins surpassed muted market expectations. Although Conagra Brands, Inc. (NYSE:CAG)’s revenue declined 4.11% over the past twelve months, the company continues to maintain a healthy gross profit margin of 25.6%.
RBC observed that the company’s recent margin and revenue gains were partly supported by favorable trade spend timing, but this benefit is likely to reverse in the next quarter. The firm also warned that profitability could remain under pressure for the rest of the year due to higher input costs, especially in proteins.
While RBC believes Conagra Brands, Inc. (NYSE:CAG)’s full-year guidance is attainable, it also flagged risks to the expected growth acceleration in the latter half of the fiscal year, pointing to consumer spending trends and pricing dynamics as potential hurdles.
Conagra Brands, Inc. (NYSE:CAG) continues to uphold a strong dividend record, having paid uninterrupted quarterly dividends since January 1976. The company currently distributes $0.35 per share each quarter and has a dividend yield of 7.66%, as of October 16.
5. V.F. Corporation (NYSE:VFC)
YTD Drop in Share Price as of October 16: 34.22%
V.F. Corporation (NYSE:VFC) is one of the beaten-down dividend stocks to invest in. The stock has fallen by over 34% since the start of 2025.
Despite recent challenges in performance, UBS raised its price target for V.F. Corporation (NYSE:VFC) from $14 to $15 on October 7, while maintaining a Neutral rating on the stock. According to the firm, VF’s underlying fundamentals remain under strain, and second-quarter results are expected to be roughly in line with consensus earnings estimates. UBS noted that the stock’s near-term outlook appears balanced, with limited upside or downside potential around the results.
While V.F. Corporation (NYSE:VFC) does not have a record of consistent dividend growth, it has been paying regular dividends to shareholders since 2010. The company’s quarterly dividend comes in at $0.09 per share for a dividend yield of 2.54%, as of October 16.
V.F. Corporation (NYSE:VFC) oversees a diverse portfolio of apparel, footwear, and accessories brands across the Outdoor, Active, and Work categories. Its leading brands include The North Face, Vans, Timberland, and Dickies. Each brand serves a distinct market segment while benefiting from strong global recognition and reach.
4. Target Corporation (NYSE:TGT)
YTD Drop in Share Price as of October 16: 34.35%
An American multinational retailer, Target Corporation (NYSE:TGT) is among the beaten-down dividend stocks to invest in.
On October 13, DA Davidson cut its price target on TGT from $115 to $108 but maintained a Buy rating on the stock. The firm also added Target to its “Stampede List,” noting that an “Equity/Debt Recapitalization” could act as a potential catalyst. According to the firm, the company’s shares have fallen roughly 65% from their pandemic-era peak and are down over 34% so far this year.
DA Davidson suggested that under a leveraged buyout scenario, buyers would need to achieve an annual EBITDA increase of 2.8% over the next five years to deliver a 25% internal rate of return. While Target Corporation (NYSE:TGT) continues to face fundamental challenges, the firm noted that margins appear to be stabilizing, and management guidance points toward a gradual improvement.
Consumers continue to struggle with elevated prices, tighter budgets, and growing uncertainty tied to shifting tariff policies and a slowing US economy. These conditions have weighed heavily on Target Corporation (NYSE:TGT), contributing to softer sales performance.
Even so, Target Corporation (NYSE:TGT) dividend remains a key source of stability, providing steady returns for shareholders amid a difficult retail environment. The company has been growing its dividends for 54 consecutive years and currently offers a quarterly dividend of $1.14 per share. As of October 16, the stock has a dividend yield of 5.06%.
3. Dow Inc. (NYSE:DOW)
YTD Drop in Share Price as of October 16: 44.6%
Dow Inc. (NYSE:DOW) is among the beaten-down dividend stocks to invest in. The stock has declined by over 44% in 2025 so far.
On October 14, RBC Capital analyst Arun Viswanathan reduced the firm’s price target on DOW from $26 to $24 while maintaining a Sector Perform rating on the stock. The adjustment came as part of RBC’s broader outlook ahead of third-quarter earnings for chemical companies.
According to the analyst, recent discussions with Investor Relations teams across the industry suggest that demand remained relatively soft throughout the quarter. The firm noted that activity in the Building and Construction sector has been subdued, and although potential rate cuts could offer some relief, a sluggish job market continues to weigh on new housing starts and property turnover. In addition, demand for consumer durables has not yet shown a meaningful recovery.
Despite these challenges, Dow Inc. (NYSE:DOW) continues to appeal to income-focused investors. Although ththe company reduced its dividend earlier this year, it has maintained an impressive streak of 457 consecutive dividend payments to shareholders. The company offers a quarterly dividend of $0.35 per share and has a dividend yield of 6.39%, as of October 16.
Dow Inc. (NYSE:DOW) remains one of the world’s leading materials science companies, providing innovative solutions across high-growth sectors such as packaging, infrastructure, mobility, and consumer applications.
2. The Wendy’s Company (NASDAQ:WEN)
YTD Drop in Share Price as of October 16: 44.9%
The Wendy’s Company (NASDAQ:WEN) is among the beaten-down dividend stocks, with a share price decline of nearly 45% since the start of 2025.
On October 10, Bernstein SocGen Group reiterated its Market Perform rating and $12.00 price target on The Wendy’s Company (NASDAQ:WEN) after the company introduced its new strategic initiative, Project Fresh.
Project Fresh is centered on revitalizing the brand, improving system efficiency, enhancing operations, and optimizing capital allocation. The initiative represents a shift in focus from aggressive unit expansion to boosting average unit volumes and strengthening franchise profitability.
According to Bernstein analyst Danilo Gargiulo, The Wendy’s Company (NASDAQ:WEN) board is still in the process of selecting a new CEO, with the appointment expected to be finalized by the end of 2025. Bernstein noted that the goals outlined in Project Fresh are consistent with their expectations, adding that renewed emphasis on brand equity and franchisee profitability should help ensure long-term sustainability.
However, the firm expects the initiative to lead to reduced near-term projections for same-store sales and unit growth. The plan could also allow franchisees to opt out of breakfast offerings, increase investments in training, equipment, and technology, and scale back short-term promotions that drive sales but hurt margins.
Although The Wendy’s Company (NASDAQ:WEN) cut its dividend by 44% in May, which concerned income-focused investors, it has continued to pay regular dividends since 2003. The company offers a quarterly dividend of $0.14 per share and has a dividend yield of 6.31%, as of October 16.
1. Robert Half Inc. (NYSE:RHI)
YTD Drop in Share Price as of October 16: 53.2%
Robert Half Inc. (NYSE:RHI) is among the beaten-down dividend stocks, with a 53% decline in its share price in 2025 so far.
Global economic uncertainty remained high, leading both clients and job seekers to act cautiously. This resulted in longer decision-making processes, fewer hiring activities, and delays in starting new projects. In the second quarter of 2025, Robert Half Inc. (NYSE:RHI) global enterprise revenue came in at $1.37 billion, representing a 7% decline compared with the same period last year, both on a reported and adjusted basis.
On October 13, Truist Securities lowered its price target on Robert Half Inc. (NYSE:RHI) to $50 from $55 but maintained a Buy rating as part of its broader outlook on the Human Capital sector. The firm noted that discussions with private IT staffing companies pointed to steady demand, though there was still no clear sign of a significant recovery.
Despite the slowdown, Robert Half Inc. (NYSE:RHI) continues to stand out as a dependable dividend payer, having raised its dividend for 21 consecutive years. The company pays a quarterly dividend of $0.59 per share and has a dividend yield of 7.37%, as of October 16.
Headquartered in California, Robert Half Inc. (NYSE:RHI) operates globally, offering contract staffing, permanent placement services, and business consulting services.
While we acknowledge the potential of RHI to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than RHI and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: 15 Dividend Stocks That Have Raised Payouts for 20+ Years and 12 Must-Buy Dividend Stocks to Invest in.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
