Almost nobody enjoys it when stock prices fall, but it’s going to happen. Prices fluctuate; it’s a part of life in the stock market.

Ironically, smart investing decisions often don’t feel good in the moment. When prices decline, it can be an opportunity to invest in awesome companies at lower valuations, which frequently translates to better investment returns in the future.

The tricky part, though, is that highly regarded stocks don’t come cheap unless there is some adversity. When they do stumble, it’s crucial to distinguish between companies with temporary setbacks and those with more serious problems.

Here are four fabulous dividend stocks trading between 15% and 45% off their all-time highs today. They all have some question marks, but will probably work through them, making them worth buying on the dip.

Image source: Getty Images.

1. Alphabet (Google)

Technology giant Alphabet (GOOGL -0.86%) (GOOG -0.79%), Google’s parent company, is down approximately 15% from its high. There has been some noise surrounding Alphabet, with concerns that ChatGPT and other artificial intelligence (AI) models will impact its search engine business, as well as antitrust litigation that could eventually force it to divest assets. Yet the company continues to perform, with 12% revenue growth in the first quarter of 2025, including nearly 10% revenue growth in Google Search.

Alphabet announced its first dividend last summer. Investors are probably not buying Alphabet for its yield, which currently stands at just 0.5%. What investors are getting, though, is a dividend-paying technology stock, a rarity, especially one with such strong growth prospects across artificial intelligence, cloud, quantum computing, and autonomous driving. The stock trades at under 20 times earnings, a bargain for a company that analysts expect to grow at a 15% annualized rate over the long term.

2. Lockheed Martin

Weapons and defense manufacturer Lockheed Martin (LMT 1.77%) plays an enormous role in how the U.S. operates on the global stage. The company develops some of America’s most advanced equipment and technology across land, sea, air, and space. Lockheed Martin is most known for the F-35 Lightning II program, which could last until 2088, meaning it will generate revenue for decades to come.

Lockheed Martin is a longtime dividend rockstar, having raised its dividend for 22 consecutive years. Investors receive a solid starting yield of 2.7% at the current share price. The stock is 27% below its all-time high as efforts to cut government spending dominated headlines. However, it seems that military spending will remain largely untouched. Analysts expect Lockheed Martin to grow its earnings by an average of nearly 13% annually over the long term, making the stock a juicy buy at just under 21 times earnings.

3. Canadian National Railway

Railroads remain crucial for transporting a wide range of goods and resources throughout North America. Canadian National Railway (CNI 0.27%) is one of the industry leaders, with a rail network spanning the eastern and western coasts of Canada, extending down through the U.S. to the Gulf Coast. The Canadian company raised its dividend for 29 consecutive years, and the stock currently yields 2.3%.

The great thing about railroads is that they’re durable, reliable businesses. However, they are sensitive to fluctuations in the economy, which can impact rail traffic. The uncertainty surrounding U.S. trade policy and tariffs has led to a decline of 24% from its all-time high. It has become hard to pass on Canadian National Railway and its anticipated 12% annualized growth at just 20 times earnings.

4. Novo Nordisk

Pharmaceutical giant Novo Nordisk (NVO 2.02%), which specializes in treatments for diabetes and obesity, is the leader in a red-hot weight loss drug market that could still increase by over 10 times its 2024 sales over the next decade. As a European company, it doesn’t increase its dividend at the same scheduled and structured pace as these others do. Still, the dividend has risen significantly over time as the business has grown.

However, despite a massive opportunity for weight loss drugs ahead, Novo Nordisk has lost nearly half its value. CagriSema, its upcoming successor to Ozempic, which had become the face of GLP-1 agonist drugs, hasn’t performed as well in clinical trials as investors hoped. Yet, the market could be overly pessimistic about Novo Nordisk’s future. The stock’s valuation has plummeted to 22 times earnings, which is a great value, even with analysts lowering their long-term growth estimates to an annualized rate of 14%. It appears the selling has gone too far.