2022 has been a volatile year for the U.S. stock market. Searching for a stable income by investing in stocks is a one-way path to high-quality dividend stocks. Thankfully, there are still some good dividend stocks to buy out there. We are officially entering a bear market and higher interest rates along with high inflation make dividend stocks a top choice now for all portfolios. Why is that?

First, the dividend stocks in this article have solid fundamentals and very attractive valuations. Second, in volatile market conditions, it is nice to be able to generate passive income in the form of dividends as they mitigate stock losses and at the same time increase total returns when capital appreciation occurs. Third, the stock market almost always bounces even when it is declining — it does not move in a straight line up or down. Therefore, I would suggest to buy these dividend stocks when they are declining. This will make potential profits better than if you were to buy them during a rally.

Here are seven dividend stocks to buy before the bull market returns:

Dividend Stocks to Buy: Steel Dynamics (STLD)

According to Yahoo! Finance, Steel Dynamics (NASDAQ:STLD) is a “steel producer and metal recycler in the United States.” The company’s second quarter (Q2) financial results were very strong, with the firm reporting five record figures.

Record net sales of $6.2 billion, record operating income of $1.6 billion, record cash flow from operations of $1 billion, and record adjusted EBITDA of $1.7 billion were among these amazing figures. At the same time, the company repurchased $517 million of the company’s common stock. Additionally, Steel Dynamics reported an earnings per share (or EPS) GAAP of $6.44, a beat by $0.72, and revenue of $6.21 billion, which was a beat by $285.72 million.

The stock has a forward dividend yield of 1.87% and a one-year estimate target of $85.39 for upside potential of nearly 22%. A lot of positive factors support investing in this steel stock now.

Westlake Corporation (WLK)

Westlake Corporation (NYSE:WLK) is a company in the Specialty Chemicals industry that makes products like polyethylene that is used in food packaging and PVC pipe that is used for clean drinking water.

The stock has a forward dividend yield of 1.26% and trades at a trailing 12-month price-to-earnings (P/E) ratio of 4.72.

The company has a strong record of beating EPS estimates over the past four consecutive quarters. In Q1 2022, the EPS GAAP of $5.83 was a beat by $1.14 and revenue of $4.06 billion was a beat by $600.34 million.

The stock has a very attractive valuation now with a price/earnings-to-growth (PEG) GAAP ratio of 0.01, and a forward price-to-sales (P/S) ratio of 0.72. In 2021, net income soared 509.42% to $2.01 billion.

The one-year target estimate of $129.87 signals a potential upside of nearly 40%.

Dividend Stocks to Buy: Huntsman Corporation (HUN)

Huntsman Corporation (NYSE:HUN) is a global chemicals firm consisting of four business divisions, polyurethanes, advanced materials, performance products, and textile effects. These products are used in several markets like aerospace, automotive and transportation, building and construction, energy, and textiles.

The stock has a forward dividend yield of 2.93% and trades at a P/E ratio of 5.39. Additionally, the company has a very strong earnings momentum, a catalyst that can drive the stock price higher. A beat of EPS estimates during all past four consecutive quarters is a great reason to consider adding HUN stock now to your portfolio.

The profitability is robust, with net income surging 303.47% to $1.05 billion in 2021 and a very strong growth of free cash flow to $609 million.

Having a forward P/S ratio of 0.66, the stock is a bargain now.

UFP Industries (UFPI)

UFP Industries (NASDAQ:UFPI) is a holding company that has business operations in three markets, retail, industrial, and construction. The firm reported record second quarter 2022 financial results, record net sales of $2.9 billion, and “record earnings per diluted share of $3.23, a 16 percent increase over the second quarter of 2021.”

This is the ideal scenario for a stock to move higher. The company has consistent strong sales growth and has found an effective way to grow its net profits faster than its sales.

In 2021, sales growth was 67.56% and net income grew 116.07%. The stock has a forward dividend yield of 1.19% and analysts are bullish about it as the one-year estimate target is $102.50, a potential upside of 17%.

Dividend Stocks to Buy: Weyerhaeuser Company (WY)

According to MarketWatch, Weyerhaeuser Company (NYSE:WY) “engages in the manufacture, distribution and sale of forest products. It operates through the following business segments: Timberlands, Real Estate, Energy and Natural Resources (Real Estate & ENR), and Wood Products.”

The stock has losses of approximately 14% in 2022 and offers a forward dividend yield of 2.01%. The P/E Ratio of 9.88 is low, but this is not a value trap stock since sales are robust and net income has increased in the past two consecutive years by 1,148.68% in 2020 and 227.1% in 2021.

The firm has a very strong free cash flow trend with an increase of 117.79% to $2.72 billion in 2021. The consistent free cash flow generation can support higher dividends soon, which is very positive.

The one-year price target of $41.30 implies a potential upside of nearly 17%.

WestRock Company (WRK)

WestRock Company (NYSE:WRK) has a vast portfolio of paper and packaging products and provides packaging solutions to companies in the beverage, beauty and personal care, food, e-commerce, retail and tobacco sectors, among others.

WRK stock has declined nearly 6% year-to-date to now trade at a P/E Ratio of 14.03, which is rather low. Additionally, they offer a forward dividend yield of 2.4%.

The firm’s sales growth is consistent and rising. In 2021, the return to profitability was made with impressive net income growth of 221.29% to $838.1 million. Moreover, free cash flow growth is phenomenal and gained momentum in 2020 and 2021, rising 16.1% and 34.03%, respectively. EPS momentum is also present and the valuation is just too appealing to ignore now.

The forward price-to-book ratio of 0.88 and forward P/S ratio of 0.49 are both supportive of a very cheap stock to start accumulating now.

Dividend Stocks to Buy: Olin Corporation (OLN)

According to Yahoo! Finance, Olin Corporation (NYSE:OLN) is a manufacturer and distributor of chemicals products operating “through three segments: Chlor Alkali Products and Vinyls; Epoxy; and Winchester.”

The stock trades at a P/E ratio of 5.49 and offers a forward dividend yield of 1.62%.

Having strong EPS momentum by beating estimates in the past three out of four consecutive quarters is the first positive factor about OLN stock.

2021 is a turnaround year as the firm returned to profitability, reporting sales growth of 54.75% and net income growth of 233.69%.

Turning to valuation, things look exceptionally favorable for OLN stock. The company has a consistent positive free cash flow trend and the stock has a forward P/S ratio of 0.72.

Shares have lost nearly 14% in 2022, but have a one-year target estimate of $71.13, which gives it a potential upside of 45%. This is a cheap dividend stock that is now at a discount and offers a good risk-adjusted return for a bounce higher.

On the date of publication, Stavros Georgiadis, CFA  did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.