Dividend stocks have been under pressure in the past few years due to the broader economy’s unpredictable swings. General Mills (NYSE:GIS | GIS Price Prediction), The Campbell’s Company (NASDAQ:CPB), and Pfizer (NYSE:PFE) in particular, have been beaten down to the point where it’s worth considering buying the dip if you want high yields plus significant upside potential.
These stocks are likely to bounce back for several reasons. First things first, the Federal Reserve is loosening monetary policy, and the roster of high-yielding assets is narrowing. Wall Street will be forced to dig deeper into the market for higher yield, and these three are among the most attractive as they have solid underlying businesses and have been paying growing dividends.
Let’s take a look.
General Mills (GIS)
General Mills sells consumer food products like cereals, yogurt, snacks, baking mixes, and more. GIS stock has fallen sharply in the past five years as weak unit sales and consumer demand forced the company to do price hikes. Moreover, GLP-1 weight loss drugs weighed down on the entire snacking industry. It is down over ~48% from its peak, but the selloff is moderating.
GIS may find a bottom above $45 as analysts expect FY 2026 (ends in May 2026) to be pivotal. EPS is expected to decline by 13% year-over-year before finally starting to grow again in the coming fiscal years. The revenue decline could end the same fiscal year and start growing at a 2% annual clip.
This is nothing impressive, but it can lead to a rebound as investors price out a doom and gloom scenario for the company. The bottom line may end up growing at an even faster clip as General Mills carries over $12.16 billion in total debt. Net interest expense came in at $126 million in Q2 fiscal 2026 and will decrease if rates keep going down.
The forward dividend yield is 5.15% and you’re paying just 13 times forward earnings for the stock. The payout ratio is 65.41%.
The Campbell’s Company (CPB)
The Campbell’s Company is a food manufacturer that makes convenience meals, snacks, and beverages. CPB stock has taken a clobbering and is down over 41% in the past five years due to margin compression from inflation and high debt levels.
General Mills declined for the same reason, and I see CPB stock recovering as the headwinds subside. The stock hasn’t dropped this low since 2008.
Once the broader industry bounces back, I expect CPB stock to make a meaningful recovery. Management is reducing costs and tweaking products to make the most out of the ongoing slump in the meantime.
Like General Mills, analysts expect FY 2026 (ends in July 2026) to be the final year of decline, with financials bouncing back in earnest. Campbell’s EPS is expected to grow from $2.44 in FY 2026 to almost $6 in FY 2035. I expect CPB stock to bounce back even faster as investors turn the discount into a premium.
You get a 5.46% dividend yield in the meantime. The payout ratio is 54.55%.
Pfizer (PFE)
Pfizer is down over 57% from its 2022 peak, and if you’ve lived through 2020 and 2021, it should be clear why the stock is down so much. The vaccine euphoria drove the stock to excessive levels, and once the demand started to wane, investors were quick to jump ship.
PFE stock has likely bottomed out and is showing signs of a recovery. Pfizer makes far more than just vaccines, and the broader pipeline is very promising. Revenue has been increasing since 2023, and profits have been nearing pre-COVID levels.
Analysts do not expect a quick and aggressive recovery from here. Both EPS and revenue are expected to remain more or less flat through the early 2030s. However, the pipeline may end up outperforming expectations. Management pointed out “15 programs with many of them being Phase III studies”.
It beat Q3 estimates with a $152 million revenue surprise. Adjusted EPS came in $0.24 higher at $0.87, with management raising full-year EPS guidance by $0.08. The momentum is clearly there.
PFE comes with a 6.82% dividend yield, and you pay just 8 times forward earnings for the stock.
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