2 Beaten-Down Dividend Stocks to Buy Now

In the ever-changing landscape of the stock market, finding reliable dividend stocks that offer both income and growth potential can be a challenge. However, for income-focused investors, beaten-down dividend stocks present an attractive opportunity. These stocks, which have seen their share prices decline, often offer higher dividend yields and the potential for capital appreciation as they recover. In this article, we will explore two such stocks: Nordson Corp. (NDSN) and Sysco Corp. (SYY). Both companies have strong fundamentals and are currently trading at discounted prices, making them compelling investments for dividend investors.

Nordson Corp. (NDSN)

Nordson Corp. is a global leader in the engineering, manufacturing, and marketing of precision dispensing equipment. Founded in 1954, the company has a rich history and a diverse product portfolio that includes adhesives, coatings, sealants, biomaterials, and plastics. Nordson's products are used in a wide range of applications, from consumer goods like diapers and straws to advanced technologies like cell phones and aerospace components.

# Financial Performance
Nordson reported its fourth-quarter results for the period ending October 31, 2024. The company generated sales of $744 million, a 4% increase compared to the same period in 2023. This growth was driven by a positive acquisition impact, offset by an organic decrease of 3%. The Industrial Precision segment saw a 3% decrease in sales, while the Medical and Fluid Solutions and Advanced Technology Solutions segments showed sales increases of 19% and 5%, respectively. The company's adjusted earnings per share (EPS) increased by 3% to $2.78, indicating strong profitability despite the sales decline.

# Dividend Yield and Growth
Nordson's expected total return is 14.5%, which includes earnings-per-share growth, dividend payments, and the expansion/contraction of the valuation multiple. While the exact dividend yield is not provided, the expected total return suggests that Nordson's dividend yield is likely higher than the market average of 1.2%. This makes Nordson an attractive investment for income-focused investors, especially given its strong financial performance and diversified product portfolio.

Sysco Corp. (SYY)

Sysco Corp. is the largest wholesale food distributor in the United States, serving over 600,000 locations with food delivery, including restaurants, hospitals, schools, hotels, and other facilities. The company's extensive distribution network and strong customer base make it a reliable investment for dividend investors.



# Financial Performance
Sysco reported its second-quarter results for fiscal year 2025, with sales increasing by 4.5% to $20.2 billion. U.S. Foodservice volume grew by 1.4%, while gross profit rose by 3.9% to $3.7 billion. Operating income increased by 1.7% to $712 million, with adjusted operating income growing by 5.1% to $783 million. Earnings per share (EPS) remained at $0.82, while adjusted EPS grew by 4.5% to $0.93. Sysco reaffirmed its full-year guidance, projecting sales growth of 4%-5% and adjusted EPS growth of 6%-7%.

# Dividend Yield and Growth
Sysco's expected total return is 14.7%, which includes earnings-per-share growth, dividend payments, and the expansion/contraction of the valuation multiple. Similar to Nordson, Sysco's dividend yield is likely higher than the market average, making it an attractive investment for income-focused investors. The company's strong financial performance and reaffirmed guidance suggest that Sysco has the potential for future dividend growth.

Conclusion

In conclusion, Nordson Corp. (NDSN) and Sysco Corp. (SYY) are two beaten-down dividend stocks that offer attractive opportunities for income-focused investors. Both companies have strong fundamentals, diversified product portfolios, and higher dividend yields relative to the market average. While the recent decline in their share prices may be concerning, the long-term growth prospects of these companies make them compelling investments for dividend investors. By purchasing these stocks at their current discounted prices, investors can benefit from both current income and potential capital appreciation as the companies recover.