3 Dividend Stocks to Double Up on Right Now

Under the right circumstances, buying the dip can prove to be a profitable move. If a stock has sold off too heavily due to investor overreaction, buying on weakness could lead to an opportunity to sell on strength down the road.

Add in the steady cash returns from dividend stocks, and you can further increase your potential total returns. With this in mind, let's look at three blue chip dividend stocks, each one recently experiencing a pullback, that may have the potential to deliver strong gains in the years ahead and generate consistently growing dividend income as well.

The stocks I'm talking about are Kraft Heinz (NASDAQ: KHC), Kimberly-Clark (NASDAQ: KMB), and Philip Morris International (NYSE: PM).

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2026 could be the year Kraft Heinz shakes off its yield-trap reputation

Kraft Heinz has been a value trap and yield trap over the past decade. Since late 2025, shares of the packaged-foods leader have fallen by nearly 65%. This decline has far outweighed the gains generated from the stock's quarterly dividend, which at one point was 62.5 cents per share but was reduced to 40 cents in 2019 and has remained at this level since.

However, following the stock's steady decline, shares have moved to a price that gives them a high forward dividend yield of 6.5%. In the years ahead, shares may have the potential to deliver significantly stronger price performance.

It all has to do with an upcoming event: the planned stock spinoff of Kraft Heinz into two separate entities. Management plans to complete this transaction during the second half of 2026.

Kraft Heinz currently trades for less than 10 times forward earnings. A big reason: these negative perceptions about the company's future growth.

However, if broken apart, the company could experience a scenario similar to that of the former Kellogg's. Since that split, each of the two spinoffs -- Kellanova and the former WK Kellogg -- has been acquired or is in the process of getting acquired , at much higher valuations.

Kimberly-Clark's pending deal for Kenvue could help it stay a Dividend King

Kimberly-Clark -- best known for products such as Huggies disposable diapers, Kleenex, and Scott tissue -- is about to add a whole new set of brands to its portfolio. The company is in the process of acquiring Kenvue.

The maker of Tylenol, Neutrogena, and Listerine split from Johnson & Johnson in a divestiture that was completed last year. At first, it may seem odd to combine a company that makes diapers and tissues with a company that makes pain relievers and mouthwash, but this headline-making merger could bode well for investors .

Management expects this transaction to create cost synergies totaling $2.1 billion, making the deal accretive to shareholders in the long term. In turn, this suggests the potential for Dividend King Kimberly-Clark to continue increasing its quarterly dividend, as it has done for each of the past 52 years. Currently, it has a forward dividend yield of 4.9%.

Philip Morris International remains on its smoke-free path to continued dividend growth

Philip Morris, which was spun off of Altria Group in 2008, was originally in the business of selling cigarettes outside the U.S. In more recent years, however, the company, known as PMI for short, has made a major pivot toward becoming a purveyor of smoke-free tobacco and nicotine products.

First, PMI launched its Iqos heated tobacco device. Then, via its purchase of Swedish Match, it became the owner of Zyn, which has become the leading nicotine pouch in the U.S. PMI, with a forward price-to-earnings ratio (P/E) of around 19, trades at a huge premium to its former corporate parent, which trades for around 12 times forward earnings.

However, this valuation premium is justified and likely sustainable given PMI's more certain growth prospects. As smokers switch to cigarette alternatives, the company stands to benefit from organic growth. Hence, PMI may have stronger potential to increase its 3.7% dividend.

Meanwhile, Altria, still experiencing mixed success with its smoke-free efforts, may have trouble sustaining, much less growing, its current 7.1% yield.

Thomas Niel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Kenvue. The Motley Fool recommends Kraft Heinz and Philip Morris International. The Motley Fool has a disclosure policy.