Dip Buying Opportunity: 2 Dividend Growth Stocks For Potential Long-Term Upside

Sep. 30, 2024 8:00 AM ET, , , , , , , 11 Comments
(11min)

Summary

  • Visa and Pepsi are facing headwinds, creating attractive buying opportunities for long-term investors due to their recent price declines.
  • Visa's strong fundamentals include double-digit revenue growth, low payout ratio, and robust cash flow supporting continued buybacks.
  • Pepsi, a Dividend King, has a solid dividend track record, and I expect growth to pick up as interest rates should provide tailwinds.
  • Both companies offer potential upside and are well-positioned to navigate economic headwinds with strong business models and experienced management.
  • Both companies face downside risks if the economy slips into a recession as a result of increased unemployment and financially constrained consumers.
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Introduction

At the time of writing, the market is down overall by roughly 300 points, which may create a buying opportunity for dividend hunters like myself. With the S&P's performance, good deals seem far and few between. However, with things like lawsuits, a slowing economy, and downgrades, some



This article was written by

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Contributing analyst to the iREIT+Hoya Capital investment group. The Dividend Collectuh is not a registered investment professional nor financial advisor and these articles should not be taken as financial advice. This is for educational purposes only and I encourage everyone to do their own due diligence. I'm a Navy veteran who enjoys dividend investing in quality blue-chip stocks, BDC's, and REITs. I am a buy-and-hold investor who prefers quality over quantity and plans to supplement his retirement income and live off dividends in the next 5-7 years. I aspire to reach and help the hard working, lower and middle class workers build investment portfolios of high quality, dividend-paying companies. I also hope to give investors a new perspective to help them reach financial independence.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of V, PEP either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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SymbolLast Price% Chg
V--
Visa Inc.
PEP--
PepsiCo, Inc.
MA--
Mastercard Incorporated
KO--
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MS--
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