Dividend Stocks with Growth Potential Amid Price Slumps

A detailed look at Brookfield Infrastructure, PepsiCo, and Prologis, revealing their solid dividend strategies amid recent price declines. These stocks offer alluring yields of over 3%, with promising growth in earnings and dividends ahead for investors.

Date: 08-06-2025

AI Rating: 7

**Investment Outlook:** Dividend-investors have some bright spots in a fluctuating market with Brookfield Infrastructure (BIPC), PepsiCo (PEP), and Prologis (PLD) standing out. Despite price declines, their dividends and growth prospects offer tantalizing opportunities. Brookfield Infrastructure has shown robust performance despite a recent stock decline of nearly 10%. Its yield has climbed to 4.2%, and the FFO rose by 5% this year, supported by inflation-driven rate increases and new expansions. The company has a solid track record of increasing dividends, having raised them every year for 16 years at a compound annual growth rate of 9%. The expected 5% to 9% annual growth in dividends and a targeted increase in FFO per share further position Brookfield favorably for investors. PepsiCo's stock has also seen a significant decline of over 25%, which has improved its dividend yield to 4.4%. However, the company is contending with headwinds such as tariffs, slowing growth, and changing consumer preferences. While it has revised its EPS estimates downward, it remains optimistic about future growth driven by recent strategic investments. The continuation of its 53-year streak of dividend increases is a positive signal for long-term investors. Prologis has faced a 15% slippage in its stock price, yielding 3.7%. Despite this downward trend, the company reported an 11% increase in core FFO per share, indicating robust operational performance amid demand pressures. Prologis is strategically positioned to take advantage of long-term demand recovery in the industrial sector, which is complemented by its planned development of data centers, enhancing overall growth prospects. Overall, these three companies not only provide generous dividend yields but also exhibit strong underlying business growth potential that could bode well for recovery in stock prices. Investors may find these stocks appealing due to their capacity for capital appreciation alongside reliable dividend payouts.

Stocks: BIPC PEP PLD