In this article, we will take a look at the 5 Oversold Dividend Growth Stocks to Buy. For deeper discussion and analysis, read 10 Oversold Dividend Growth Stocks to Buy.

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. (NYSE:GGG) 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. (NYSE:BRO) 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. (NYSE:BRO) 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. (NYSE:OGS) 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. (NYSE:TSN) 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. (NYSE:ROL) 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.

READ NEXT: 15 Best Dividend Paying Stocks to Buy Right Now and 10 No-Brainer Dividend Stocks to Buy.

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