These 5 Dividend Stocks are Down 21% to 77%. Here's Why They're Worth Buying and Holding for at Least 5 Years.

Occidental Petroleum (NYSE: OXY), ConocoPhillips (NYSE: COP), United Parcel Service (NYSE: UPS), Toyota Motor (NYSE: TM), and Estee Lauder (NYSE: EL) are all down big from their all-time highs.

Here's why all have sold off and why each dividend stock is a great value now despite challenges.

Two beaten-down oil stocks to buy now

Exploration and production (E&P) company Occidental Petroleum, commonly known as Oxy, is the sixth-largest holding in Warren Buffett-led Berkshire Hathaway's public equity portfolio. Meanwhile, ConocoPhillips is, by far, the most valuable U.S.-based E&P by market cap. Despite these accolades, both companies have sold off during the past few months as West Texas Intermediate crude oil prices (the U.S. benchmark) have dipped below $70 per barrel.

Oxy and ConocoPhillips will sport lower profit margins when oil prices are low. But both companies can still be free cash flow (FCF) positive at prices much lower than today's levels. Oxy's portfolio has a breakeven level below $50 per barrel, while ConocoPhillips is working toward being FCF positive at just $35 per barrel.

Oxy completed its $12 billion acquisition of CrownRock in August, and ConocoPhillips announced plans to buy Marathon Oil for $22.5 billion in May. The more oil prices fall, the worse those deals will look, at least in the near term.

The sell-off is a buying opportunity for investors looking to scoop up shares of top E&Ps on sale. What's more, Oxy has a dividend yield of 1.7% and ConocoPhillips has an ordinary dividend of $0.58 per share per quarter and a quarterly variable dividend based on the performance of the business. The variable dividend has been $0.20 per share for the past three quarters, so investors can estimate ConocoPhillips' yield to be about 3%.

UPS can power a passive income portfolio

One look at the following chart, and it's easy to see why UPS is down about 45% from its all-time high and is hovering near a four-year low.

UPS's revenue has been falling for several years now, and margins have plummeted to 10-year lows. The main reason for the disappointing results is bloated costs due to overextended routes and higher operating expenses.

The good news is that UPS is returning to volume growth for U.S. package deliveries. It has assured investors that the dividend is safe, although it hinted that dividend raises are unlikely, given the company's high dividend expense relative to its earnings.

Add it all up, and UPS and its 4.9% dividend yield stand out as a compelling turnaround play for investors who believe the company is set to return to growth.