3 DEEPLY Discounted Dividend Stocks To Buy In August 2026 💰

So, guys, right now it feels like we're in the midst of a rotation in the market. The month of July saw capital shifting out of semiconductor and AI-related stocks into more defensive sectors like healthcare and real estate. And as a result, in my portfolio, stocks like AbbVie, Kilroy Realty, and Realty Income have all been on fire, and there were plenty of other dividend stocks out there that shot up quite a bit as well. But, there are still a few laggards out there, and we'll be talking about three of them in this video, which I think all seem like solid buying opportunities as we head into August. Before we get into it, though, in case you're new to the channel, my name is Ryan, and here we talk all about dividend investing and how you can use it to create passive income and reach financial freedom. So, if you love dividend investing and if you're on a mission to retire early, then hit that subscribe button. We are officially less than 4,000 subscribers away from hitting 100K. I'm really gunning for that silver play button, guys, and I'd love to have you along as we continue to grow our portfolios and collect that cash flow. Also, guys, as we're going through this, leave me a comment below and let me know if you have any of the stocks that we're talking about in this video. And also, let me know about any other stocks that you might have your eye on. I'd be curious to hear what you think is looking good. All right, guys. Now, getting into our first stock of the day, this one is going to be Lowe's, and I don't feel like I've talked about Lowe's for some time here on the channel, but the share price has really just been beaten down as we see. In the past month, it's down 5%. It's pretty close to getting under $200 per share, which is pretty cool to see. And if we look at the year-to-date performance, Lowe's is down about 18%. So, a really big drop so far here in 2026. And just as a side note, guys, everything that we're looking at in this video today is going to be coming from Fiscal AI. All of the charts, all the graphs, the earnings reports, transcripts, literally everything. This is a really great stock analysis platform, and if you want to check it out for yourselves, there's a link to this down below, where you can save 15% on your subscription. Definitely check it out. But anyway, guys, getting back to Lowe's, one of the big reasons, the main reason that I think the stock is down, really just comes back to the housing market. Right now, the housing market is basically stuck, okay? Mortgage rates are still relatively high. So, for the millions of homeowners who locked in 3% mortgages a few years ago, the last thing they want to do is sell their house and finance another one at today's rates. Economists sometimes call this the lock-in effect. And when people aren't moving, then they also aren't taking on many of the big renovation projects that tend to come with buying or selling a home. Things like remodeling a kitchen, replacing flooring, or completely redoing a bathroom. Those are exactly the kinds of projects that Lowe's benefits from. On top of that, the bulk of Lowe's' business comes from DIY customers. And because inflation is still running rampant and people are tightening their budgets, a lot of consumers have been putting off these larger, more discretionary home improvement projects. In fact, Marvin Ellison, who is the CEO of Lowe's, recently said that this has been the most difficult housing market that he has faced in this business since the financial crisis. So, this isn't really a Lowe's-specific problem. This is something that's been impacting the entire home improvement industry. In fact, if you look at Home Depot's share price over the past year, its performance has been pretty similar to Lowe's, with both stocks down around 8 or 9%. Now, having said all of that, why would you want to buy Lowe's today with all of the headwinds that it's currently facing? Well, in my opinion, all of the headwinds that we just talked about are really more cyclical things rather than permanent. Eventually, people are going to start moving again. You know, eventually, they'll want to update their kitchens or their flooring or their bathrooms. Eventually, people will tackle all those home improvement projects they've been putting off over the last few years. I mean, at the end of the day, homes don't stop needing maintenance just because interest rates are high. In many cases, those repairs are just being delayed. Meanwhile, Lowe's is still the same high-quality business it's been for decades. Along with Home Depot, it has one of the strongest brands in the home improvement industry. It still generates billions of dollars in free cash flow every year. And this is most certainly not the first difficult housing cycle the company has been through before. And in the meantime, one of the best parts about owning a business like Lowe's is that you're getting paid to wait. The dividend is still very safe. it's still growing. They've actually been growing the dividend for over 60 years making Lowe's a dividend king. And because of the share price drop, the yield right now is quite a bit above the average. Right now, you know, at about $203 per share, you can get a yield at 2.35%. Pretty moderate yield, but this is way above the average yield of 1.7%. So, that's looking good. Like I said, they have a 60-year dividend growth streak, and that dividend is very well covered. In the trailing 12 months, the payout ratio is only 40%. Not to mention, they've been buying back shares like it's nobody's business. And with that said, looking at the valuation comparing a few different metrics, the Wall Street analysts have a price target for Lowe's of $263.73. Doing a discounted cash flow calculation, this is coming in quite a bit lower. Based on this, the fair value is only $186.82, which would still make it a bit overvalued, actually. But also based on the average dividend yield of this company, that gives it a fair value of $260.41, which is much more in line with the analyst price target. All in all, if you take an average of these three numbers, that's going to give us an average fair value for Lowe's of $236.98, which means that at current prices, it's still about 14% undervalued. Now, out of the three companies that we're looking at today, Lowe's is the only one that I actually have in my portfolio. And if we look at my position over here, on my dividend portfolio tracking spreadsheet, which you can start using for free to track your own portfolio, there's a link to this down in the description of the video. But here we can see I have 16 and 1/2 shares at an average cost of $195.05. So, I am up just a little bit in terms of share price, only 4.6% including dividends. I'm up 13.2% and this is a pretty small position in my portfolio, just here in my taxable account. It's only 3%. So, very small position. I have plenty of room to increase this if I should decide to. And it's an even smaller percentage of the taxable account's income at about 2.1%. So, in both departments, there's plenty of room to add to Lowe's, and I actually would not mind doing so at current prices, about 200 bucks per share, I think it's looking like a good buy. [music] Now guys, moving on to our second stock of the day, this one is Booz Allen Hamilton, ticker symbol BAH. And looking at the share price performance back over here on fiscal, it's actually up in the past month. It's up 1.4%. But if we look at the year-to-date performance here, it looks more like it stepped in the ring with Ivan Drago and has it really been beaten up. Here in 2026, the stock is down 24.4%. So a really big decline. Now guys, before we talk about why the stock is down, I think it's worth touching on what this business actually does because Booz Allen Hamilton is definitely not a household name. I'd be surprised if many of you have heard of this company before. I don't even think I've covered it here before on the channel. I think this is the first time. But in a nutshell, Booz Allen is a technology consulting company that works almost exclusively with the US government. Its customers include organizations like the Department of Defense, intelligence agencies, the Department of Homeland Security, and the Department of Veteran Affairs. And Booz Allen helps them with different problems in the realms of cybersecurity, AI, cloud computing, software development, and tons of other technical stuff. Now, from what management has said, Booz Allen is really operating two completely different businesses right now. Its defense and intelligence segments continue to perform extremely well, but its civilian business has really been going through a tough time. In fact, the company's CEO, Horacio Rozanski, recently said, "This is the most bifurcated environment I have seen in my decades with Booz Allen Hamilton. Our civil business is operating in the most challenging market in a generation." Recently, many civilian government agencies have become more cautious with their spending. They've been slower to approve funding or new contracts and take on new projects, which has naturally created a more difficult environment for companies like Booz Allen. Despite that though, as I said, their defense and intelligence segments are still doing great. And considering everything that's happening around the world right now, it's hard to imagine that the US government will dramatically cut spending on areas like cybersecurity and AI anytime soon as those have a direct impact on national security. And while some investors are worried that AI could disrupt some of these consulting companies, we talked about that quite a bit as it pertains to Accenture. I actually think in the case of Booz Allen it could benefit the company. Government agencies are going to be pretty particular about who they work with to help them implement AI. And that's exactly the kind of work Booz Allen already does. They're already a trusted partner of the US government which is a huge competitive advantage. So really kind of like with Lowe's, I think a lot of the headwinds here are more temporary. And also just like with Lowe's, because Booz Allen pays a nice growing dividend, you're also getting paid to wait. Looking at the dividend stats right now, you could lock in a 3 and 1/2% yield which is a pretty great yield. And this is basically twice as high as the company's average yield of 1.7%. So that's looking pretty good. And over the years Booz Allen has been a great dividend growth stock. Nice looking chart right there. And the CAGR in this time period is about 15%. So very nice dividend growth, but in recent years it looks like that growth has slowed down a bit, but we're still looking at high single digit increases which I think pairs pretty well with a 3 and 1/2% starting yield. Not to mention the dividend is very well covered. And in the trailing 12 months the payout ratio is only about 32%. So plenty of dividend coverage and they've also consistently been buying back shares. And with that said, looking at the valuation, the Wall Street analysts give Booz Allen a price target of $85.67. Based on the discounted cash flow calculation, this is coming in even higher at about $111. And based on the company's average dividend yield over time, the fair value comes in at about $124, which is about twice as high as the current share price. But taking an average of these three numbers, that's going to give us an average fair value of $107.06, which means that Booz Allen is still about 39% undervalued. That's quite the discount. [music] Now guys, getting into our third stock of the day, this one is going to be Dolby Laboratories, ticker symbol DLB, and this stock has also taken quite a beating in the past month. The share price is down exactly 5%. So, a nice little pullback there, and an even greater one year-to-date. So far in 2026, the stock is down 21.6%. You know, I've talked about this stock quite a few different times here on the channel, and I think this is a really interesting business. Many of you probably recognize the company name and the logo, but in case you're not familiar with what Dolby actually does, in a nutshell, they create technologies to improve the quality of audio and video experiences. Their popular Dolby surround sound is widely used in movie theaters, and also in many home entertainment systems to create a more immersive and enjoyable experience, whether you're watching a movie, or listening to music, or playing video games. But, that's really just the tip of the iceberg. The biggest revenue driver for Dolby is actually the licensing of their technology. They license out this video and audio tech to other companies like Microsoft, Sony, Samsung, and Visio, who implement it into their products like phones, computers, TVs, and gaming systems. Now, what's cool about this is that licensing is a pretty high-margin business for Dolby. They basically get paid to let other companies use their technology, and all in all, that leaves them with a consistently high gross profit margin that historically has hovered at around 90%, which is very impressive. On top of that, one of my favorite things about Dolby is that it has negative net debt on the balance sheet, which is another huge plus in my book. That's one of my favorite things to see. Now, going back to the performance, here we can see that the share price peaked sometime in 2021, and since then, it's really struggled to do anything positive. It just keeps going down and down and down, and at this point, it's really not far off at all from its pandemic lows. And the big reason for that really actually does just come back to the pandemic. During 2020 and 2021, when everyone was stuck at home and had all that stimulus money to spend somehow, people rushed out and bought new TVs, they bought new laptops, gaming consoles, and other electronics. The problem with that is that people don't typically replace some of these items every few years. They typically hold on to them for a longer period of time. So, after that big jump in demand, sales of some of these consumer electronics started to slow down. And because Dolby earns a large chunk of its revenue by licensing its technology to these companies, every time they sell one of their devices, fewer TVs, PCs, and phones being sold has translated into slower revenue growth for Dolby. In fact, the company CEO, Kevin Yeaman, recently said, "2021 was a great year for foundations. The next 3 years after that, we suffered from the hangover of all those pandemic purchases, especially around TVs and also PCs. So, right now, they're just in the midst of a pandemic hangover. You know, consumers bought so many electronics during the COVID years that that demand was pulled forward, but now sales are just weaker after the fact." Now, with that said, looking at the dividend stats, right here it says that Dolby Labs has about a 1.3% dividend yield. But, as we can see, every single year they pay out $1.41 in dividends, and against a $49.80 share price, that means the yield is really more like 2.8%. So, it's a slight error in the reading here. While we're here though, you know, a 2.8% yield looks like the dividend growth rate is coming in at about 10%. So, some nice dividend growth, your classic dividend growth stats, and the payout ratio is only about 26%. So, the dividend is still very well covered here. Moving on, looking at the valuation here, the Wall Street analysts give Dolby a price target of $78.33, which is quite a bit above the current share price. Based on the discounted cash flow calculation, this is pretty comparable at $77.66. Based on the average dividend yield, this is way higher than those first two numbers at $91.71. And if we take the average of these three numbers, that's going to give us an average fair value for Dolby of $82.56, which means the stock is still about 40% undervalued. So, I think Dolby is looking pretty interesting right now, and I think the same is true for all three of the companies that we talked about today. With that said though, these three are not the only ones. There are still quite a handful of other stocks out there that I think you need to keep your eye on. The first of which, guys, is Accenture. We briefly mentioned it earlier in the video, but Accenture is still looking good. It is up 12 and 1/2% in the past month, so a nice little rebound there, but it's still down so much for the year. The stock is down 46%, so I think it's worth keeping an eye on. Moving on, stock number two is American Tower Corporation, AMT, which has seen a pullback of 6.6% in the past month, and that's going to leave it down 5.7% year to date. So, I think this is a great REIT, and I think it's another one to keep an eye on. Moving on, stock number three is Badger Meter. This one's up 9 and 1/2% in the past month, so a nice rebound here, but it's still down so much year to date. It's still down 16.4%. I think this is a great company, and I still think it's worth considering, even at current prices. With that said, also keep an eye on The Hershey Company. It's down a little bit in the past month, about half a percent, but year to date the stock is down 7%. It's really coming back down, so I think this is a good one to start watching again. Moving on, Intuit is still another great stock to watch. Still under $300 per share, even though it has seen a nice pop in the past month. It's up 12%. Good for Intuit, but it is still down 54% year to date. So, I think it's worth watching. Next up, guys, we got McDonald's. This is a great-looking stock right now. It is down about 2% in the past month, and it's down 12.6% year to date. It's been a great dividend payer. Not a bad price right now for McDonald's, so I think it's a good one to keep an eye on. Next up, we've got Universal Display Corporation, OLED. I think we talked about this one in last month's video. It was either last month or the month before, but in the past 30 days it's down about 11%, so it just keeps getting hit, and year to date here in 2026 it's down over 33%. Anyway, next up is Pepsi. I know a lot of you guys out there are actually buying Pepsi yourselves. Not a bad time to do so. It's down 4.3% in the past month, and year to date Pepsi is down 5.4%, and the yield is still above 4%. So, you're getting a nice cash flow return right now. I think this is a good one to keep an eye on. Anyway, next up we've got a stock that's near and dear to my heart and also my wallet. This one is Rollins. I'm actively buying this one myself. I'm dollar cost averaging into it every single week. It's down about 1% in the past month, but year-to-date it's down 25 and 1/2% and sitting at about $44 per share. This has been a great time to buy Rollins. It's been so much fun adding more shares to this position. And then moving on guys, we've got Beazley Properties who has seen a nice little rebound in the past month up 2%, but there was a period where it was below $26 per share, which is so low for this stock. And the year-to-date the performance has been poor. It's down 5.4%. I think this is a great price to buy Beazley Properties. So, definitely keep an eye on this one. And last but not least, we've got Zoetis guys. Poor Zoetis at $74.80. It's down 1 and 1/2% in the past month, still down 40% year-to-date. The stock just cannot catch a break. So, I definitely think it deserves an honorable mention here. So, a lot of good buying opportunities out there guys. So many great dividend stocks to buy. But buying great companies is really only half the battle. Avoiding bad investing habits is just as, if not more, important. I'm telling you all about that in this next video right over here where I'm covering 10 bad investing habits that destroy your portfolio and I bet you're doing at least one of these. So, click right over here to learn about those and I'll see you in the next one.