Dividend stocks have enjoyed an uptick in popularity over the past few months. Most pundits, myself included, would argue that there’s a massive buying opportunity afoot currently. The S&P 500 fell into bear market territory which is affecting market perceptions. 

Again, while there is a lot of fear, that creates opportunity. For one, the official entry into a bear market is likely to push prices down farther. This is advantageous for dividend stocks because their yield will rise as price falls assuming dividends aren’t decreased.

That is very attractive to investors who are often lured in by momentarily higher yields. That sudden demand can raise overall prices. Then the dividend yield comes down as price rises. It’s important to remember that the dividend payment remains the same while this occurs. 

The stock price, though, rises. And that’s one of the main reasons to consider these dividend stocks trading at a discount. 

Ardagh Metal Packaging (AMBP)

Ardagh Metal Packaging (NYSE:AMBP) is a very intriguing stock. The company is a Luxembourg-based manufacturer of indefinitely recyclable metal beverage cans. Although the firm’s stock trades under $10, its $4.1 billion in sales is hardly tiny. 

The dividend is currently yielding 6.8%. That’s a very respectable yield but is significantly lower than it was earlier in the year, at 12.5%, when the company used $400 million for dividends. It has since shifted and will now use $200 million for buybacks and $240 million for dividends. That has resulted in the dividend yield falling to a still very attractive 6.8%. 

The company realized a profit in the most recent quarter, a change on a year-over-year basis. The company remains a strong play with twist on the traditional beverage canning industry. Its stock also possesses 41% upside based on the current price and target price. 

LyondellBassell Industries (LYB)

LyondellBassell Industries (NYSE:LYB) stock represents a leading firm in the global chemical industry based out of the Netherlands with offices in Houston and London. 

It is trading at a discount of roughly 25% based on the current price and target price. So, there’s plenty of reason to consider it based on that calculation alone. Add in the stock’s dividend which yields 5.33% and it begins to look even better. 

LyondellBassell Industries hasn’t reduced that dividend dating back to 2011. So, it’s relatively safe. In fact, the company raised the dividend by six cents last month. And given that the dividend payout ratio sits at a low 0.26, or 26% of earnings, the company could theoretically raise it again. 

Consider that the firm recently had its strongest first quarter since 2015 measured by EBITDA and there’s a lot to like about LYB stock.  

Annaly Capital Management (NLY)

Investors shouldn’t let the fact that Annaly Capital Management (NYSE:NLY) stock is heavily involved with mortgage-backed securities from the likes of Fannie Mae (USOTCMKTS:FNMA) and Freddie Mac (USOTCMKTS:FMCC) scare them away. 

The company has beaten analyst expectations each of the last eight quarters and it remains ‘overweight’ despite the current interest rate environment. Simply based on analyst expectations it has marginal upside of approximately 5%. But factor in its huge dividend yielding 14.25% and suddenly the calculus becomes much different. 

That dividend has held steady at 22 cents for the past nine quarters, so there’s little reason to expect that to change. Further, management is likely to use that dividend to entice investor capital in order to raise share price overall. Given that the company had a very strong EPS beat in the most recent quarter, it’s worth considering despite prevailing mortgage concerns.

Magellan Midstream Partners (MMP)

As readers may have guessed, Magellan Midstream Partners (NYSE:MMP) stock represents a midstream oil play. So, the company engages in the transportation, storage, and distribution of petroleum and oil. 

MMP stock has roughly 15% upside based on price predictions alone. Factor in the stock’s 8.67% yielding dividend and that rises higher. 

Investing in MMP stock right now is a bet. Essentially that bet is that the company has bounced back in the second quarter. The company failed to meet earnings expectations in the first quarter after beating them for several prior. 

But the company could rebound strongly when it reports earnings on July 28 on higher commodity prices. That’s essentially what the investor relations team said in the most recent earnings report from early May. Given that estimates have trended upward over the last 3 months that looks to be the case. 

Emerson Electric (EMR)

Emerson Electric (NYSE:EMR) is a legacy business that traces its roots back to 1890 when it was founded in St. Louis. What began as a small manufacturer of electric motors and fans has become a global company with 85,000 employees.

The firm is currently divided into Automation Solutions, Climate Technologies, and Tools and Home Products businesses. 

Investment in EMR stock is primarily about upside based on price. The dividend hasn’t been reduced since 1957 and yields 2.58% moving forward. In other words, don’t expect it to change at all providing quick cash. However, EMR stock has upside of approximately 32% based on target price. 

The reason to believe Emerson Electric could rise to meet those expectations soon lies in its recent performance. Sales were up in Q1, along with orders for the trailing three months and EPS figures. That led the company to increase its full-year guidance, usually a very strong signal. 

Kinder Morgan (KMI)

Kinder Morgan (NYSE:KMI) stock represents an investment in the energy infrastructure of the U.S. The company operates 141 terminals and more than 83,000 miles of pipeline.

Those pipelines transport natural gas, gasoline, crude oil, and CO2 among others. The company’s terminals store everything from petroleum to chemicals, to vegetable oil. 

Kinder Morgan’s dividend is attractive due to its high forward yield of 6.55%. It is also relatively predictable. One, it hasn’t been reduced dating back to 2016. And two, the company has been raising that dividend every fifth quarter since 2018.

Given that management recently raised it to $0.0278 last quarter it’s reasonable to expect it will remain there for the next three quarters. 

Kinder Morgan has roughly 25% upside at current price levels. 

Procter & Gamble (PG) 

Investors have flocked into Procter & Gamble (NYSE:PG) stock as the markets have become increasingly unsettled throughout 2022.

The consumer goods firm is a noted defensive stock with a 0.39 beta that indicates it simply won’t buckle along with the overall market. Further, its dividend is as steady as they come, having last been reduced in 1957. 

All of that implies that PG shares might be fully priced at their present price of $145 and change. They aren’t, though, and their average target price of $166.71 implies more than 14% upside. 

Those shares will likely fare well no matter what comes next for the markets. PG stock is just one of many consumer goods stocks to consider in the current environment for their stability and dividend payment. 

On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.