2 DEEPLY Discounted Dividend Stocks To Buy In October 2026 💰

So guys, right now there is no shortage of deeply discounted dividend stocks to be found. There are so many companies that have just been beaten down in share price. And my knee-jerk reaction would be to talk about some of the more prominent positions in my portfolio. Stocks like Rollins which is down 20% in the past month, Bich Properties, which is down 14%, Zoetas, which is down 10%, or even Realy Income, which is down 13% in the past month and is now sitting in the mid $50 per share range. I think all of these stocks look like interesting buying opportunities right now and maybe I'll make a video about them here pretty soon. But at the same time, I feel like I and many other people have given these companies enough lip service as of late. So today, I want to talk about two other stocks that don't get discussed nearly as much, at least here on my channel, that I think also look like great stocks to consider as we make our way into October. 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 stocks and if you're on a mission to retire early, then hit that subscribe button. I'd love to have you along as we both continue to grow our portfolios and collect that cash flow. All right, guys. So, the first stock on our list today is Constellation Brands, which owns a portfolio of different beer, wine, and spirits brands. Most notably, they're the company behind popular beers like Melo, Corona, and Pacificico. They basically have the big three when it comes to surveas, but they also have a portfolio of different wines and spirits, including brands like Robert Mandavi Winery and Mikampo Tequila. Now, looking at the share price performance over here on Seeking Alpha, as we can see, Constellation Brands has had a really tough month. The stock is down 17.5% just in the past 30 days, which if we look at the year-to- date performance is going to leave it down about the same, about 17.2%. But if we zoom out even farther over the past five years, the stock has really taken a beating. It's down 46%. Now, there are a few different reasons why the stock has struggled so much over the past few years, but the biggest is that the alcohol industry as a whole has really been going through a difficult period and other companies like Brown Foreman and Dagio have also seen substantial share price declines over the past 5 years. One of the big trends that we've seen during this time and it's being talked about everywhere is that people just aren't drinking as much as they used to. This has been especially noticeable among younger consumers. There was a Gallup study a few years ago that found that only 62% of Americans between the ages of 18 and 34 said they drank alcohol compared to 72% of people in that same age group about 20 years earlier. With that said, more recent data actually shows that Gen Z has started drinking more and their drinking habits are now more in line with the rest of the population. So, I don't think it's quite as simple as saying that young people just don't drink anymore. There does seem to be a broader shift toward moderation, though. People are becoming more conscious about their health and because of that they're drinking less frequently and when they do drink they're usually not drinking as much. There are some other factors playing a role in this too. I mean spending money on alcohol is discretionary so affordability is certainly an issue for people as well especially if you're buying drinks out at the bar or at a restaurant. Not to mention there are also more alternatives today whether that's non-alcoholic drinks or potentially other substances. Overall there are just other ways that people are choosing to spend their money. All of this has had a negative impact on the alcohol industry. Though in 2025 alone, total alcohol consumption in the US fell about 5% with beer and wine volumes both falling around 6%. Despite all of these headwinds though, I think the underlying business has remained pretty resilient. If we look at the company's earnings per share and free cash flow per share over the past decade, there's obviously been some volatility, not really super aggressive growth, and we have seen a little bit of trouble and stagnation recently, but overall they both held up very well. And it's a similar story with the sales here. They have come down a bit recently over the past year, but if we zoom out, they've still grown very consistently over the past decade. And by the way, guys, all of these charts are coming from Simply Safe Dividends, which I think is a mustave for dividend investors. If you're trying to analyze stocks and really get a good sense for how safe a company's dividend really is, I think this is the best tool out there. They actually publish a public track record of how their dividend safety scores have performed. And since 2015, investors who follow those ratings would have avoided 97% of all dividend cuts. That's a big deal. Fortunately for us, Constellation Brands here has a dividend safety score of 70, which is safe. And that means that the risk of this company cutting its dividend is pretty low across a full economic cycle, and we'll look a bit more into this in just a moment. But if you want to check out Simply Safe Dividends for yourself, there's a link to it down in the description of the video where you can try it out for free for 2 weeks. And you don't even need to put in a credit card. you just sign up with your email and see what you think. Anyway guys, getting back to it. A lot of that resilience we saw in the charts, I think comes back to the strength of Constellation's beer portfolio. Medel is now the number one beer in the US by dollar sales. Corona is one of the largest beer brands in the country and even Pacificico has continued gaining market share. And that's one of the things I really like about Constellation brands in particular. I could be wrong about this, but at least from what I've experienced, if you're reaching for a survea, chances are you're going to go for one of those big three, and Constellation owns all of them. Anyway, on the dividend side of things, right now at current prices, you could lock in a 3.6% yield with Constellation brands. That's a pretty nice yield, and as we can see, this is way, way above the company's 5-year average yield of only about 1 and a.5%. So, a much higher cash flow return than usual. And the dividend is still very well covered. If we scroll down looking at the earnings payout ratio and the free cash payout ratio, these are both in great shape. In the trailing 12 months, the earnings payout ratio is only 34% which was very in line with the historical payout ratio. And same thing with the free cash flow payout ratio. This isn't even 40%. So in both departments, there's plenty of room to continue paying and growing this dividend. And speaking of growing the dividend, they've done a fantastic job of doing so. Over the past 5 years, the average growth rate is about 6.3%. It's double that over the past 10 years, which is very impressive. Although to be fair, the most recent raise was way lower than the average is only 1%. So hopefully they can pick that up in the future. But nonetheless, they do have a 10-year dividend growth streak, so the consistency is there so far. And with the payout ratios as low as they are, it looks like they have all the makings to continue growing the dividend despite the headwinds that the business is seeing. At any rate, in terms of the valuation, comparing a few different metrics, starting here with the Wall Street analysts, they have a price target for Constellation Brands of $16,548. If we do a discounted cash flow calculation, that's going to bring the fair value to 15178. And based on the company's 5-year average yield of 1 and a.5%, that's going to bring the fair value to $265.81, which is way higher than those first two numbers. But if we take an average of all three of these numbers, that's going to bring the average fair value to $194.36, which means that at its current prices, Constellation Brands is still about 41% undervalued. Now, personally speaking, Constellation Brands is sitting on my watch list right now. I think that the current valuation, the resilience of the underlying business, and just the general negativity surrounding the alcohol industry make this a pretty interesting contrarian investment. It's definitely a stock that I'm going to be thinking about a bit more going forward because despite all of the headwinds that we talked about, I still think there's a lot to like about this company. All right, guys. So, the second stock we're going to be talking about today is NN REIT, which is a real estate investment trust that's been around for more than 40 years now. The company was founded in 1984 and owns nearly 3,800 properties spread across all 50 states. And these are all single tenant net lease properties. And that's actually where the company's name comes from. NN stands for triple net, which is a type of lease where the tenant is responsible for most of the expenses on the property, which could include things like property taxes, insurance, and maintenance. So, from a landlord's perspective, this is a pretty ideal setup. And NNN has a really diversified portfolio. They work with more than 400 different tenants across 37 different industries. And no single tenant makes up more than 5% of the company's total rent. And historically, the portfolio's occupancy has been very high with an average of just over 98%. Their largest tenant is 7-Eleven, but they also work with companies like Casey's General Stores, Taco Bell, Raising Canes, along with car washes, gyms, other restaurants, and a bunch of other businesses. Not to mention about 88% of the company's rent comes from service-based and non-discretionary businesses, which I think gives the portfolio a pretty defensive nature as well, which is exactly what you want if you're looking for an investment that can pay you stable and dependable income. Anyway, getting into the share price performance back over here on Seeking Alpha. As we can see in the past month, NN is down about 11%. So, a pretty decent drop. But if we look at the year-to-ate performance, the stock is actually still in the green, still up close to 4%, which is not too shabby. And over the past 5 years, it is down a little bit. It's down about 7%. Now, as far as the recent drop in the past month, a lot of it just comes back to interest rates. The Federal Reserve recently raised interest rates by 25 basis points. And generally speaking, higher interest rates aren't great for real estate investment trusts for a couple of different reasons. The first is that REITs rely pretty heavily on debt to grow their businesses. Companies like N are constantly acquiring new properties and they often use debt to help fund those acquisitions. So when interest rates go up, debt becomes more expensive. And if you're borrowing money at higher rates to buy new properties, that can potentially make those deals less profitable. The same thing applies to their existing debt. As older debt eventually matures, they may have to refinance some of it at higher interest rates, which can increase their interest expense and leave less money available to do things like pay or grow the dividend. Fortunately, TripleN's debt maturities are pretty spread out, so it doesn't appear to be too big of an issue for them. With that said, there's another side to all of this as well, and that's the competition from bonds. When interest rates go up, yields on things like treasury bonds tend to become more attractive. And if investors can suddenly earn a higher yield from a relatively safe bond, which is widely considered to be a risk-free investment, other incomeroucing investments like REITs become less attractive by comparison. So, you basically get it from both sides. Higher rates make it more difficult for REITs to operate and grow their business, while at the same time, it makes competing income investments more attractive. Anyway, looking at the dividend stats over here at current prices, you can lock in a yield just north of 6% with NN. That's a very juicy yield, and this is a bit above the 5-year average yield of 5.3%, which is still a really nice yield. Furthermore, this dividend is very well covered. Looking at the AFO payout ratio here, in the trailing 12 months, it was only 69%, which is pretty in line with what you'd find with something like realy income. And this is definitely lower than what you'd find with Vichy Properties. Scrolling up, looking at the dividend growth, there's really not too much to speak of here regarding the dividend growth rate over the past 5 years and 10 years. We're looking at low single digits in the most recent raise does look to be right in line with both of those. But I will say what it lacks in aggressive growth, it makes up for inconsistency. They've been raising dividends for the past 36 straight years. And I also think with the starting yield as high as it is, you can get away with a lower dividend growth rate. I think that's a fair trade-off. Plus with a dividend safety score of 80, which means it is still safe. It seems like that dividend will just keep on growing. Now, in terms of valuation, we'll look at a couple different metrics here. Starting with the Wall Street analysts, they have a price target of $47.73. And based on the average dividend yield, which once again is about 5.3%, that's going to bring the fair value to $4653. Pretty close to what the Wall Street analyst had there. And if we take an average of these two numbers, that's going to give us a fair value of $47.13, which means that at current prices, tripleN would still be about 13% undervalued. So I think N here is looking great right now. Very underrated. REI Constellation Brands is looking pretty interesting as well. But these two are not the only ones. There are still so many stocks out there that I also think are worth considering right now. The first of which is Badger Meter, guys. We can see it's down another 2.76% in the past month, which is going to leave the stock down about 25% here year to date. Moving on, Casey's General Store is another one. I've really been waiting for a pullback in the stock and we finally got one, the start of one here in the past month where it dropped about 30% after reporting its quarterly earnings. That's what we see here on the chart. Basically fell off a cliff right there. But looking at the year-to-ate performance, Casey's is still up a little bit. It's still up 8.4%. But still, this most recent drop is a nice start and hopefully it keeps going. Next up, the Hershey Company is definitely one to watch. It's down almost 12% in the past 30 days, which is going to leave the stock down about 8.3% year to date and it is sitting right there at his 52-W week low. And the yield's looking pretty good, coming in at about 3 12%. Anyway, into it has pulled back quite a bit yet again in the past month. It's down 25%, sitting at $277 per share. That's going to leave the stock down almost 60% year-to date. It's pretty close there to its 52- week low. It looks like it's still maybe a few percent away from that, but the yield right now is coming in close to 2%. So, I think init's looking interesting. Next up, I know a lot of you guys out there are buying this one. We're talking McDonald's, which is down 13% just in the past month, which is going to leave it down 22 1.5% year to date. And McDonald's just became a dividend king. They just recently announced their 50th straight year of dividend growth, which is great. And it's right there at its 52- week low. Anyway guys, we kind of talked about this one in the intro a little bit, but realy income is definitely a good one to keep an eye on right now. Sitting in the mid50s. It's down 12.4% in the past month, which is going to leave it just barely in the red year to date. But still, nonetheless, it is sitting right there at its 52- week low, and that yield is getting up there close to 6% again. So, I think this is a good one to keep an eye on. I know we already touched on this one as well, but Rollins definitely a good one to keep an eye on. It's sitting at $30.40, 40s and I bet we'll see it under $30 per share at this point. I don't see how it couldn't get down below that. But crazy pullback in the past month. It's down 19% which is going to leave it down almost 50% year to date. And personally speaking, I'm just stacking shares every single week, swooping up shares of this bad boy. I love it. Anyway, you know, we got to mention V2 Properties again. Look at that share price. $2327. It's just unreal, guys. guys. I mean, the stock is down 14% in the past month, or I should say 14 more% and it's down 174% year to date, right there at its 52- week low, and the yield is getting pushed up very close to 8%. Anyway, next up, Verisk. Still one to watch in my opinion, sitting at $168. It is down about 11.7% in the past month. A nice little pullback there. That's going to leave it down 24.6% year to date. And then Wingstop, guys, officially under $100 per share. This one's been pretty crazy to see. It's been such a volatile stock over the past couple of years, but in the past month, shares are down 16%, which is going to leave it down about 60% year to date. Way off of its highs from earlier this year, just over $200 per share. Actually, closer to $300 per share, excuse me, what a drop. Anyway, next up, Watsco is still a good one to keep an eye on in my opinion. It is up a little bit in the past month, up close to 2%, but the share price is sitting at $320 per share. I think that's a great price and the stock is still down about 5% year to date. So, I think this is a good one to keep an eye on. Anyway, next up, Clear Secure is a good one to watch right now. The share price has really started to see quite the pullback. It's down 12% in the past month. Year to date, it is still up a little bit, up about 10%, but we can see it's quite a departure from its highs from earlier this year, about $62 per share. So, some pretty poor momentum with the share price right now. I wouldn't be surprised if it goes lower from here, which is why I think it's one to watch. All right, guys. And then we've got Zoetus. Of course, Zoetus is on this list now sitting at $70.27. I mean, this one will get below 70 at this point. I'm pretty sure of it. In the past month, it's down another 9.7% which is going to leave it down to 44% year to date. But look at the yield getting pushed up to around 3%. That's that's pretty nice. Anyway, guys, those are all of the stocks that I think are good ones to keep an eye on right now. And if you want to hear about a handful of stocks that I'm most definitely staying away from and suggest you do the same, then check out this next video right over here. In this one, you'll learn about three dividend stocks that are showing some pretty big red flags that make me think they could be next to cut their dividends. In fact, one of them already has. So, click right over here to learn about those.