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3 High-Yield Dividend King Stocks Down Between 9% and 14% to Buy in October

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  Published in Stocks and Investing on Tuesday, October 21st 2025 at 9:18 GMT by The Motley Fool
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Three High‑Yield Dividend‑King Stocks Down 9‑14% – Prime Buying Opportunities in October

In a rapidly shifting market, October has proven to be a fertile month for dividend‑focused investors. MSN Money’s latest “Saving & Investing” feature highlights three long‑standing dividend‑king names—AT&T, Exxon Mobil, and Coca‑Cola—that have all slipped 9‑14% in recent weeks. While each company has a storied history of raising dividends for over five decades, their current price decline has opened a window for those seeking high‑yield, income‑generating positions. Below is a detailed look at the stocks, why they’re classified as dividend kings, and what investors should watch as October unfolds.

What Is a Dividend King?

A “dividend king” is a public company that has increased its quarterly dividend for at least 50 consecutive years. This distinction places the companies in a rare elite class that has outpaced the market in terms of both dividend reliability and capital appreciation. Dividend kings are often viewed as defensive investments, offering a mix of income and stability in turbulent markets. The three stocks discussed in this piece have all maintained dividend‑raising streaks of over 60 years, making them benchmarks for dividend growth investing.

1. AT&T – A Dominant Player in the Telecom Space

Current Yield & Performance
- Dividend yield: 8.7% (the highest among the trio).
- Price drop: ‑13% from the 52‑week high, presenting a near‑mid‑point discount to the previous rally.

Why AT&T?
AT&T’s dividend history dates back to the 1920s, and the company has been a staple in many dividend portfolios. Despite recent concerns about its debt load and a shift toward streaming services (via Warner Bros. Discovery), AT&T’s robust cash‑flow generation from its vast network infrastructure continues to support dividend payments.

Key Catalysts
- Debt Reduction: Management has outlined a plan to eliminate about $15 billion in debt by 2025, potentially freeing up more capital for dividends.
- Streaming Growth: The company's expansion into OTT services could diversify revenue streams and mitigate the decline in traditional cable.
- Stock Price: Analysts predict a gradual rebound as AT&T navigates its restructuring, making the current dip an attractive entry point.

2. Exxon Mobil – The Oil Giant with a Solid Yield

Current Yield & Performance
- Dividend yield: 5.6%.
- Price drop: ‑14%, reflecting the broader decline in energy‑sector stocks amid fluctuating oil prices.

Why Exxon Mobil?
With a dividend‑raising track record spanning 60 years, Exxon Mobil remains a key component in the “Dividend Kings” group. The company's diversified portfolio—from upstream oil exploration to downstream refining and petrochemicals—provides multiple revenue channels. In an environment where energy prices are recovering, the company is well positioned to sustain and potentially increase its dividend.

Key Catalysts
- Oil Price Rally: A gradual uptick in Brent crude could translate into higher margins for Exxon’s upstream operations.
- Capital Expenditure (CapEx) Focus: Recent CapEx plans aim to balance asset growth with shareholder returns, potentially leading to dividend enhancements.
- Geopolitical Factors: Ongoing geopolitical tensions may create supply constraints that favor higher oil prices, benefiting Exxon’s earnings and dividends.

3. Coca‑Cola – The Beverage King with Steady Growth

Current Yield & Performance
- Dividend yield: 3.1%.
- Price drop: ‑9%, the smallest decline among the trio but still a notable discount relative to its recent highs.

Why Coca‑Cola?
While Coca‑Cola’s dividend yield is lower than AT&T’s and Exxon’s, its 63‑year record of dividend increases speaks to its resilient business model. The company has successfully navigated consumer trends, shifting toward healthier product lines and expanding in emerging markets, which bolsters its long‑term sustainability.

Key Catalysts
- Product Innovation: Continued investment in low‑calorie and functional beverages helps maintain growth momentum.
- Emerging Markets: Expansion in Africa and Asia is expected to drive new revenue streams.
- Share Repurchases: Coca‑Cola’s sizable buyback program has historically supported share price resilience and dividend health.

Market Context & Strategic Outlook

The three dividend kings are currently positioned at a strategic intersection:
- Economic Uncertainty: Rising interest rates and inflationary pressures have prompted a rotation into income stocks.
- Sector Rotation: Investors are gradually moving from growth to value, and dividend‑heavy stocks are benefitting.
- Investor Sentiment: A renewed focus on cash‑generating assets has bolstered demand for high‑yield names.

For dividend‑growth investors, the current price dips—ranging from 9% to 14%—create potential entry points without drastically undercutting the long‑term value proposition. Analysts caution, however, that each company’s unique risk profile must be considered. AT&T’s debt and restructuring process, Exxon’s exposure to commodity price swings, and Coca‑Cola’s slower yield growth are all factors that could impact future dividend payouts.

Bottom Line

October’s dip in AT&T, Exxon Mobil, and Coca‑Cola offers an attractive buying window for investors who prioritize reliable income and long‑term dividend growth. These companies, each with over 60 years of uninterrupted dividend increases, have proven resilience across multiple economic cycles. While the current market environment poses certain risks, the potential upside—especially if price recovery is swift—renders these dividend kings compelling additions to any income‑focused portfolio. As always, investors should weigh their own risk tolerance and financial goals against the dynamic landscape of each sector.