3 Dividend Bargains for September

One of the strongest ways to navigate an uncertain market is through dividend stocks. With hundreds of dividend stocks, you can pick the ones that have maintained and increased payments for years and have the ability to keep doing so. Generating passive income is a smart way to make your money work for you. 

The right stocks will have a yield higher than the S&P 500, and these companies will keep raising dividends. Fortunately, some of these stocks have depressed prices, making them a strong bargain. As the economy improves, there’s a rate cut and business fundamentals grow, and you’ll see an impressive stock price recovery. But before that happens, here are three dividend bargains for September. Make your move before it’s too late. 

Target Corporation 

Target (NYSE: TGT | TGT Price Prediction) has become a household name today. It offers household essentials like groceries, apparel, beauty products, accessories, and shoes. It has become a family shopping destination, and despite that, the stock trades at an attractive valuation today. Target has a dividend yield of 5.07%, and it is exchanging hands for $89, down 34% year-to-date. While this is a significant drop from the 52-week high of $161, it is an opportunity for investors to load up on the stock. 

The decline in stock price is due to rising prices, and consumers have been stretched lately, leading to a slump in sales. Target saw a 1.9% drop in same-store sales for the second quarter and management doesn’t expect it to improve this year. However, the sales drop due to high inflation and tariffs could be a temporary factor. There’s a lot of uncertainty about the impact of tariffs and large retailers are hurt due to the price hikes as they try to pass along some of the increase to consumers. 

Target has an attractive valuation, and the stock has a P/E ratio of 10.49, which is much lower than the S&P 500’s P/E of 30. I believe Target has the ability to bounce back from the dip, and the current factors will pass. Target has a new CEO from February 2026 who plans to focus on products that people may not easily get anywhere else. This could help draw customers. 

Looking at Target’s cheap valuation and strong performance, the stock is a bargain for September. 

Occidental Petroleum

One of Warren Buffett’s favorite stocks, Occidental Petroleum (NYSE:OXY) is a part of Berkshire Hathaway’s (NYSE:BRK-B) portfolio today. The oil and gas company has a strong 2.1% dividend yield. Exchanging hands for $45, the stock is down 8.3% year-to-date and 10% in 12 months. It is one of the biggest oil and gas companies in the U.S. and has assets in the Permian Basin and Denver-Julesberg Basin. It has an upstream, midstream, and downstream business and an impressive profit margin. 

Despite a drop in crude oil prices, Occidental Petroleum reported a net income of $288 million in the second quarter and produced 640 million barrels of oil. Its total revenue stood at $934 million and the operating cash flow came in at $3 billion. The total company production hit the midpoint of guidance. 

Berkshire Hathaway has a 26.9% stake in the company and is one of the biggest investors. Occidental Petroleum hasn’t had an easy year. It is expected that oil prices will continue to drop to $60-70 per barrel. However, its appeal comes down to the discipline, strong cash flow, and operations. The company ensures high-margin production at the Permian Basin, and it is working on cutting debt to maintain steady cash flow. It has the ability to navigate through volatile commodity prices. 

The stock’s dip makes it a strong dividend bargain to add to your portfolio. A temporary dip doesn’t change the long-term narrative of a company. It is a high-quality business worth holding on to for the long term. 

Coca-Cola

Beverage giant Coca-Cola (NYSE:KO) is a Dividend Aristocrat with a history of increasing dividends for 53 consecutive years. The company has a dividend yield of 3.04%, and the stock is exchanging hands for $67, up 8.36% year-to-date. It has a strong presence in more than 200 countries and enjoys consumer loyalty.

It is a stable business but hasn’t had a good 2025. The company operates in a slow-moving industry that doesn’t change much about its fundamentals. One good thing about Coca-Cola is that it performs well under all economic scenarios and has survived several market ups and downs. 

While soda consumption declines worldwide, Coca-Cola’s diversified portfolio keeps it relevant even in changing times. It includes bottled water, fruit juices, tea, energy drinks, coffee, sports drinks, and alcoholic beverages in its wide portfolio. 

In the second quarter, its net revenue was up by 1%, and organic revenue grew 5%. The EPS was up 58%, but it saw a volume decline across several countries. The long-term revenue prospects are strong, but margin expansion could be limited. However, Coca-Cola will keep the dividends intact and is a bargain stock to buy this month. 

Don’t expect market-beating performance from Coca-Cola, but buy it for steady passive income. It is a safe, reliable stock that wouldn’t let you down in any market condition. KO is an evergreen stock for patient investors.