A Once-in-a-Decade Opportunity: 1 Magnificent Dividend Stock Down 36% to Buy Hand Over Fist in 2025

Julian WestSunday, Jan 19, 2025 5:47 am ET
7min read


Alright, fellow investors, let's talk about a once-in-a-decade opportunity that's staring us right in the face. We're looking at a magnificent dividend stock that's taken a 36% beating in the market, and it's time to pounce on this chance to buy hand over fist in 2025. But first, let's understand why this stock has taken such a tumble.



1. Market conditions: 2024 was a tough year for the markets, with the S&P 500 index experiencing a significant decline. This broader market downturn likely contributed to the price drop of our dividend stock.
2. Sector-specific issues: As a financial services company, our stock faced headwinds in 2024 due to regulatory changes and increased competition. These sector-specific issues may have negatively impacted the stock's price.
3. Company-specific concerns: The company's share price may have been affected by specific issues, such as earnings misses, dividend cuts or freezes, regulatory issues, or negative investor sentiment.

Now, let's address the elephant in the room: the 36% decline in this dividend stock's price. While it's never fun to see a stock we own or are interested in take a nosedive, this presents an opportunity for us to buy more shares at a discounted price. Remember, the best time to buy is when there's blood in the streets – and right now, there's plenty of it.



But why should we be interested in this particular dividend stock? Well, let me tell you, this company has a strong financial profile and a history of dividend growth. In fact, it's one of only a handful of companies with a AAA bond rating, which is higher than the U.S. government's. This means that the company has an elite balance sheet and can weather economic storms better than most.

Moreover, this dividend stock has a conservative dividend payout ratio, ensuring that it can continue to pay and grow its dividend in the future. And speaking of dividends, this company has increased its payout annually for over 60 years, qualifying it as a Dividend King – a rare and coveted title in the investment world.



So, what are the primary catalysts for a potential turnaround and price recovery in 2025? Here are a few reasons to be optimistic:

1. Regulatory changes and deregulation: The incoming Trump administration's focus on deregulation could benefit financial services companies, leading to improved performance and potentially higher stock prices.
2. Strong financial profile and dividend growth: Companies with strong financial profiles and a history of dividend growth, like our dividend stock, are well-positioned to continue increasing their dividends and maintain their financial stability.
3. Expansion of fiber internet network and 5G wireless subscribers: For companies like AT&T, expansion of their fiber internet network and growth in 5G wireless subscribers could drive increased free cash flow, leading to higher dividends and stock buybacks.



In conclusion, the 36% decline in this dividend stock's price presents a once-in-a-decade opportunity for investors to buy hand over fist in 2025. With a strong financial profile, a history of dividend growth, and several potential catalysts for a turnaround, this dividend stock is a must-own for income-focused investors. So, don't miss out on this chance to load up on shares at a discounted price – the future looks bright for this magnificent dividend stock.

Happy investing, and remember: fortune favors the bold!

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