The market is now in its second half of 2023 and what a roller coaster ride it’s been. We’ve seen stocks fly high and plummet due to high inflation, aggressive interest rate hikes and a devastating banking crisis. With such high-impact issues beating down on investor portfolios, finding sustainable income and growth is a challenge for many. However, finding discounted dividend stocks is arguably easier.

The market is showing signs of recovering. The S&P 500 has recently entered into a bull market, signaling investor optimism is in the air. Additionally, many companies haven’t caught up with the indices, and some offer not just potential growth, but attractive dividends. That makes these stocks prime choices for long-term investors to buy discounted dividend stocks.

Heartland Financial USA, Inc. (NASDAQ:HTLF) is a multi-bank holdings company that operates as an independent entity or independently branded division through the community banks it operates. It provides various services in Colorado, Illinois, Iowa, Kansas, Minnesota, Arizona, California, Colorado, New Mexico, Texas and Wisconsin communities. HTLF’s services include deposit and credit offerings, treasury management and retirement plan services, commercial and small business banking and more.

Even though the company is in a downtrend, it has consistently increased dividends for seven straight years. The stock’s annual dividend yield is currently at 4.17% and is trading at a 27.3% discount relative to its target price mean. Additionally, its continued improvements in net interest income have positively impacted the company’s earnings growth. That makes it one of the best dividend stocks to buy today.

Another company from our list of discounted dividend stocks is Hooker Furnishings Corporation (NASDAQ:HOFT). HOFT is a furniture company that designs, markets and imports leather, wooden, metal and fabric-upholstered furniture for various markets. It operates in different segments like Hooker Branded, Domestic Upholstery and Home Meridian. These segments offer furniture for home offices, home entertainment, bedrooms and other marketing units like Accentrics Home and Pulaski Furniture.

Thanks to the company’s 4.57% annual dividend yield, HOFT allows investors to earn a stable passive income. Not only that, the company has also consistently increased its dividend payouts for the last seven years. 

The company’s recovery from previous lows hasn’t affected its low trading price compared to the analysts’ target of $30.00. In addition, based on its last financials, the company has strengthened its receivables, inventory positions and improved its balance sheet. The result is a strengthened business model that shareholders will appreciate. It’s now considered one of the top discounted dividend stocks to monitor.

Atlantica Sustainable Infrastructure Plc (NASDAQ:AY), formerly Atlantica Yield Plc, is a U.K.-based sustainable infrastructure company that is mainly focused on renewable energy assets in North America, South America and EMEA. It operates in 4 main segments: renewable energy, transmission lines, water, natural gas and heat. Its assets can produce 2,161 megawatts (MW) of renewable energy, 1,229 miles of electric transmission lines, 55 thermal megawatts (MWt) of district heating capacity and 17.5 M ft3 per day of water desalination and 343 MW of natural gas-fired power generation capacity.

The company is the last on our list of high-yield discounted dividend stocks. It currently offers a yield of 7.71% and is trading at a 27.9% discount from its mean target price of $32.22. As markets continue to transition into sustainable energy, AY offers investors a defensive play with income and growth, making it a highly attractive dividend stock to buy.

On the date of publication, Rick Orford 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.