2 Oversold Dividend Growth Stocks to Buy Now
The stock market sometimes punishes both deserving and undeserving companies during periods of uncertainty, creating buying opportunities for long-term investors willing to sift through the beaten-down stocks to find the high-quality companies that have been oversold. Year to date, shares of financial data and ratings specialist Moody’s (NYSE: MCO) and swimming pool supplier Pool Corp (NASDAQ: POOL) are down sharply, falling 16% and 11%, respectively. But a closer look at the fundamentals of both businesses suggests these pullbacks might be an overreaction. Both companies operate incredibly durable models, generate substantial cash flow, and have a long history of returning capital to shareholders through consistently growing dividends. Will AI create the world’s first trillionaire? Our team just released a report on the one little-known company, called an “Indispensable Monopoly” providing the critical technology Nvidia and Intel both need. Continue » For income-focused investors looking to buy the dip, here is why these two oversold dividend stocks are worth a closer look today. Image source: Getty Images. Moody’s Despite the stock’s recent 16% slide, Moody’s underlying business is performing exceptionally well. The company’s fourth-quarter revenue for 2025 rose 13% year over year to $1.89 billion. And profitability grew even faster. Moody’s reported non-GAAP (adjusted) earnings per share of $3.64 for the period, up from $2.62 in the year-ago quarter. A major driver of this top-line momentum was its “Moody’s Investors Service” segment, where revenue climbed 17% year over year. A robust corporate finance environment and record-high fourth-quarter issuance in infrastructure finance helped fuel the segment’s strength. And the company’s analytics segment — which generates recurring subscription revenue — also contributed, growing 9% year over year. “Our 2025 results demonstrate the tremendous demand for Moody’s solutions and our ability to execute with precision and speed,” management noted in the company’s fourth-quarter earnings release. Additionally, Moody’s recently raised its dividend by 10%, lifting its quarterly payout to $1.03 per share. This marked the company’s 17th consecutive year of dividend increases. While the stock’s dividend yield of about 0.9% as of this writing might not look particularly appealing to investors seeking income, the safety and growth trajectory of the payout are compelling. Moody’s boasts a highly conservative payout ratio of about 29%. This means the financial giant retains plenty of capital to reinvest in its business while still having ample room to support future dividend hikes.