10 Oversold Dividend Growth Stocks to Buy

In this article, we will take a look at the 10 Oversold Dividend Growth Stocks to Buy. 

As the S&P 500 pushes toward record highs, investor concerns are rising alongside it. According to Bloomberg, bullish investors point to strong earnings growth driven by artificial intelligence, resilient corporate profits, and the potential for productivity gains. More cautious investors argue that the rally has been fueled by only a small group of mega-cap technology stocks and that valuations among leading AI-related companies have become stretched. There is also uncertainty surrounding the US-Iran conflict and questions about how persistent inflation could affect consumers whose finances are already showing signs of strain.

Even so, the broader market has recovered, and that is what many investors are focused on. Just two months ago, the S&P 500 was trading in negative territory. Back in March, Business Insider reported that Adam Kobeissi, founder of The Kobeissi Letter, believed the market was setting up for a rebound. In a note, he pointed out that the S&P 500 was trading at its lowest level in 232 days. He also noted that the index’s daily Relative Strength Index, which measures whether an asset is overbought or oversold, had fallen to around 29. When that indicator drops below 30, it is often viewed as a sign that an asset has become oversold.

Jay Woods, chief market strategist at Freedom Capital Markets, also highlighted historical market trends. In a note to clients, he said that in 20 of the previous 28 instances when the S&P 500 fell below its 200-day moving average, the index moved back above that level within 10 trading days.”In all cases except the bear market of 2022, things were short-lived and provided great entry points for traders over both the long and short-term,” Woods wrote.

For now, the broader market appears to have moved past the worst of its recent weakness. Even so, some oversold stocks may still offer opportunities before they fully recover.

Given this, we will take a look at some oversold stocks that pay dividends.

Our Methodology:

For this list, we used a Finviz stock screener and looked for dividend stocks with a 14-day Relative Strength Index (RSI) below 30 as of June 4. An RSI below 30 suggests that the stock is oversold. From that group, we picked stocks with a 5-year average dividend growth rate of over 5%. The stocks are ranked according to their RSI.

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. Insider Monkey’s quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).

10. Conagra Brands, Inc. (NYSE:CAG)

Relative Strength Index: 29.08

5-Year Dividend Growth Rate: 6.18%

On June 3, Bernstein downgraded Conagra Brands, Inc. (NYSE:CAG) to Underperform from Market Perform. It also reduced its price target on the stock to $12 from $16. The firm said the company appears to be moving toward a dividend cut, noting that its payout ratio has climbed to nearly 90%. In a research note, the analyst suggested that incoming CEO John Brase may seek additional investment spending to help revive sales growth. Bernstein pointed to ongoing commodity inflation and Conagra’s limited ability to raise prices as key reasons for the downgrade.

A day earlier, on June 2, UBS analyst Peter Grom lowered his price recommendation on CAG to $13 from $16. He reiterated a Neutral rating on the stock. In a research note, the analyst said the firm had revised its expectations for food companies to reflect current demand trends and inflationary pressures.

Conagra Brands, Inc. is a branded food company with operations across four segments: Grocery & Snacks, Refrigerated & Frozen, International, and Foodservice. Its Grocery & Snacks division includes branded shelf-stable food products that are sold through a variety of retail channels across the United States.

9. Westlake Corporation (NYSE:WLK)

Relative Strength Index: 29.05

5-Year Dividend Growth Rate: 14.44%

On May 27, Citi downgraded Westlake Corporation (NYSE:WLK) to Neutral from Buy. It lowered the stock’s price target to $95 from $125. The firm cited a slower-than-expected recovery in the housing market and what it described as “less favorable” polyvinyl chloride fundamentals. Citi noted that prices in Asia have started to normalize amid weak construction activity and ample supply. As a result, the firm sees few catalysts that could sustain the current momentum in polyvinyl chloride pricing. Given those conditions, Citi expects limited supply-driven upside for Westlake’s pricing going forward.

Earlier in the month, on May 18, JPMorgan analyst Jeffrey Zekauskas upgraded Westlake to Neutral from Underweight while maintaining a $90 price target. In a research note, the analyst said the shares were trading close to fair value. JPMorgan expects Westlake to generate free cash flow equivalent to about 3% of its share price in 2026 and 8% in 2027. The firm also pointed out that polyethylene prices had increased by 40 cents per pound over the previous two months, outpacing export prices. Based on that trend, JPMorgan said that “we would be surprised to find the May price increase successful.”

Westlake Corporation manufactures and supplies a wide range of materials and products used in everyday applications. The company operates across Asia, Europe, and North America, serving markets that include housing and construction, packaging, healthcare, automotive, and consumer products.

8. Atmos Energy Corporation (NYSE:ATO)

Relative Strength Index: 28.97

5-Year Dividend Growth Rate: 10.02%

On May 29, Mizuho lowered its price recommendation on Atmos Energy Corporation (NYSE:ATO) to $184 from $192. It reiterated a Neutral rating on the stock. The firm attributed the target reduction to lower valuation multiples across the utility sector.

During the fiscal Q2 2026 earnings call, CEO John Akers said the company generated year-to-date fiscal 2026 net income of $985 million, or $5.92 per diluted share. He also noted that management had updated its earnings guidance and now expected full-year EPS to be between $8.40 and $8.50.

Akers pointed to the company’s continued infrastructure investment, stating that capital expenditures totaled $2 billion during the first half of the fiscal year. He said more than 89% of that spending was allocated to projects aimed at improving the safety and reliability of the company’s distribution, transmission, and underground storage systems.

Addressing customer growth, Akers said the company added more than 51,000 new customers during the 12 months ended March 31, 2026. More than 39,000 of those additions came from Texas, highlighting the state’s role in the company’s long-term growth plans.

Atmos Energy Corporation is a natural gas-only distributor serving more than 3.3 million customers across over 1,400 communities in eight states, primarily in the southern United States.

7. The Buckle, Inc. (NYSE:BKE)

Relative Strength Index: 28.30

5-Year Dividend Growth Rate: 8.52%

UBS analyst Mauricio Serna lowered the price target on The Buckle, Inc. (NYSE:BKE) to $47 from $52 on June 1. The analyst reiterated a Neutral rating on the shares. The adjustment followed what the firm described as a “weak” first-quarter earnings report.

Despite the cautious view from UBS, the apparel retailer reported higher sales in its latest monthly update. On June 4, the company said comparable store net sales, which track locations open for at least a year, rose 2.2% during the four weeks ended May 30, 2026, compared with the same period last year.

Total net sales for the month reached $92.4 million, up from $88.4 million a year earlier, marking a 4.5% increase. The gains were not limited to the month alone. For the 17-week period ended May 30, 2026, comparable store sales increased 4.4% from the prior-year period.

Net sales for the year-to-date period climbed to $381.1 million from $360.5 million, an increase of 5.7%.

The Buckle, Inc. sells casual apparel, footwear, and accessories through a nationwide retail network. The company operates roughly 441 stores across 42 states.

6. The Carlyle Group Inc. (NASDAQ:CG)

Relative Strength Index: 28.28

5-Year Dividend Growth Rate: 6.96%

On May 18, TD Cowen reduced its price recommendation on The Carlyle Group Inc. (NASDAQ:CG) to $50 from $53. It reiterated a Hold rating on the stock. Following first-quarter earnings reports across the alternative asset management sector, the firm updated its models. The analyst noted that while the sector’s long-term earnings potential continues to improve, the quality of current earnings remains relatively weak.

Earlier, on May 12, BofA lowered its price goal on CG to $43 from $48. It maintained an Underperform rating on the shares after the company reported a miss in management fee revenue. The analyst said Carlyle’s growth rate continues to trail that of its peers. In response to the latest results, the firm reduced its EPS estimates for 2026, 2027, and 2028, mainly due to lower expectations for base management fees and realized principal investment income.

The Carlyle Group Inc. is a global investment firm that operates through three business segments: Global Private Equity, Global Credit, and Carlyle AlpInvest. Its Global Private Equity segment provides advisory services to the company’s buyout, growth, real estate, infrastructure, and natural resources funds.

5. Graco Inc. (NYSE:GGG)

Relative Strength Index: 27.60

5-Year Dividend Growth Rate: 9.47%

On May 21, Graco Inc. (NYSE:GGG) announced a definitive agreement to acquire Valco Melton in a $447 million cash deal. Valco is a global supplier of adhesive application and quality assurance systems. The purchase price includes the present value of approximately $40 million in expected tax benefits and remains subject to customary adjustments. Based on Valco Melton’s expected results, the transaction values the company at about 14x its full-year 2025 EBITDA.Graco expects the acquisition to close during its fiscal third quarter, subject to the usual closing conditions.

Valco Melton designs, manufactures, and supports industrial systems that apply adhesives with precision while helping manufacturers monitor product quality during production. Its technology is used mainly in packaging and a range of industrial manufacturing applications where dependable performance and product consistency are important. The company has approximately 650 employees and serves customers in more than 80 countries. In 2025, it generated roughly $145 million in revenue.

The deal fits into Graco’s long-term growth strategy. It gives the company a stronger position in an expanding market, extends its global presence, and adds products that can support demand from both original equipment manufacturers and aftermarket customers.

Following the completion of the transaction, Valco Melton will become part of Graco’s Industrial division.

Graco Inc. provides technology and expertise for managing fluids and coatings in industrial and commercial applications. The company designs, manufactures, and markets systems and equipment that move, measure, control, dispense, and spray fluid and powder materials.

4. Brown & Brown, Inc. (NYSE:BRO)

Relative Strength Index: 25.65

5-Year Dividend Growth Rate: 12.21%

On May 21, Morgan Stanley lowered its price recommendation on Brown & Brown, Inc. to $60 from $65. It reiterated an Equal Weight rating on the stock. Analyst Bob Huang noted that most property and casualty insurance companies reported slower premium growth in the first quarter, although underwriting profits remained strong. He also expects pricing and premium growth across the sector to weaken further. Following the Q1 earnings season, Morgan Stanley adjusted its price targets for the group.

Also on May 21, Citizens analyst Matthew Carletti initiated coverage of Brown & Brown with an Outperform rating. He also set a $70 price target on the stock. Carletti said the company is likely to experience “cyclically-soft” organic growth in the near term but expects growth to improve sequentially throughout the year. In a research note, he told investors that Brown & Brown’s margins should outperform those of its peers due to its organizational structure and business mix. Citizens also believes the company is well-positioned in attractive markets.

Brown & Brown, Inc. is a diversified insurance agency, wholesale brokerage, insurance programs, and service organization. The company markets and sells insurance products and services, primarily in the property, casualty, and employee benefits sectors.

3. ONE Gas, Inc. (NYSE:OGS)

Relative Strength Index: 25.56

5-Year Dividend Growth Rate: 5.21%

On May 21, Morgan Stanley lowered its price recommendation on ONE Gas, Inc. (NYSE:OGS) to $82 from $86. It reiterated an Equal Weight rating on the shares. The adjustment came as part of the firm’s update to price targets for North American Regulated & Diversified Utilities and Independent Power Producers (IPPs) for April. Arcaro told investors that utilities lagged the S&P 500’s return during the month.

Earlier, on May 18, Truist reduced its price goal on OGS to $95 from $99. It kept a Buy rating on the stock. The change was included in a broader research note updating the firm’s Power and Utilities models ahead of the American Gas Association’s Financial Forum. According to the analyst, the sector remains in the third year of the data center expansion cycle, with investment levels continuing to rise alongside growth expectations. The analyst added that vertically integrated electric utilities are among the biggest beneficiaries, given their role in building the infrastructure needed to support growing electricity demand from data centers.

ONE Gas, Inc. is a regulated natural gas distribution utility in the United States. The company operates through a single segment, regulated public utilities, and delivers natural gas to residential, commercial, and transportation customers.

2. Tyson Foods, Inc. (NYSE:TSN)

Relative Strength Index: 24.25

5-Year Dividend Growth Rate: 5.95%

On June 1, Goldman Sachs added Tyson Foods, Inc. (NYSE:TSN) to its US Conviction List as part of the firm’s monthly update. The firm said it expects Tyson to deliver earnings growth above consensus estimates, supported by its diversified protein portfolio and continued margin expansion. Goldman Sachs maintains a Buy rating on the stock. It also set an $81 price target on the stock.

During the fiscal Q2 2026 earnings call, CEO King said the company’s second-quarter results demonstrated the effectiveness of its strategy. Tyson generated $13.7 billion in sales and $497 million in adjusted operating income during the quarter. King noted that performance was led by the Chicken and Prepared Foods segments. He attributed the strength in those businesses to disciplined execution of operational initiatives within the company’s control, along with more efficient marketing and promotional spending.

Chief Financial Officer Curt Calaway said free cash flow remains a central part of Tyson’s strategy. He reported that operating cash flow totaled $829 million during the first half of the fiscal year, resulting in free cash flow of $432 million. Calaway also pointed to progress on the balance sheet. Over the previous 12 months, the company reduced its gross debt by nearly $1 billion.

Tyson Foods, Inc. is a food company with a portfolio of products and brands that includes Tyson, Jimmy Dean, Hillshire Farm, Ball Park, Wright, State Fair, Aidells, and ibp. The company operates through four segments: Beef, Pork, Chicken, and Prepared Foods.

1. Rollins, Inc. (NYSE:ROL)

Relative Strength Index: 22.61

5-Year Dividend Growth Rate: 21.72%

On May 29, Bernstein analyst Connor Cerniglia downgraded Rollins, Inc. (NYSE:ROL) to Market Perform from Outperform. It also lowered the firm’s price target to $52 from $70. The downgrade was driven by the resignation of CFO Ken Krause, whom Bernstein described as a “central figure behind the company’s potential margin transformation story.” The firm said it is now less willing to underwrite Rollins’ target of 30% to 35% incremental EBITDA margins, noting that progress toward that goal had been uneven under previous management. As a result, Bernstein believes the likelihood of achieving that margin target has declined. Cerniglia shared that view in a research note to investors.

During the Q1 2026 earnings call, management pointed to improving demand throughout the quarter. CEO Jerry Gahlhoff said the company delivered a strong first quarter and noted that organic growth exceeded 8% in March. He said part of that momentum came from continued investments in additional sales staff and marketing initiatives ahead of the peak season. Gahlhoff also stated that Rollins entered the busy period well prepared, with sufficient staffing across its sales, technician, and customer support teams.

Management highlighted acquisitions as another key driver of growth. Gahlhoff noted that the company recently announced the acquisition of Romex Pest Control, describing the deal as another example of Rollins’ successful M&A strategy. He said the acquisition would expand the company’s footprint in new markets and added that Romex shares a strong culture focused on both employees and customers.

Rollins, Inc. is a global consumer and commercial services company. Through its subsidiaries and independent franchises in more than 70 countries, the company provides pest and wildlife control services, along with protection against termite damage, rodents, and insects for residential and commercial customers.

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