Investors looking to pad their passive-income streams have some interesting options right now. The two stocks in this article have been beaten down to valuations that seem too low, given the strength of their underlying businesses.

When bought on the dips, stodgy old dividend businesses like these two can produce market-beating gains that make growth-stock investors envious. To produce big returns, though, businesses need to significantly raise their payouts over time.

Investors could jump on these seemingly underpriced dividend stocks simply because they've been beaten down. Instead, have a look below at the opportunities and challenges they're facing so you can gauge their chances of delivering outsized gains.

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Source Fool.com