Finding discounts among dividend-growing stocks can be an incredible way to build a fortune. Not only does a lower price on a dividend-paying stock represent a cheaper valuation, but it also implies a higher dividend yield.

Consider the businesses three Motley Fool contributors recommend: Verizon Communications (VZ 0.43%)Pool Corp. (POOL 0.52%), and Tractor Supply (TSCO 0.56%).

Currently, each stock's forward dividend yield (projected dividend payments for the next year) trades well above its four-year dividend yield average -- potentially hinting at discounted passive income potential.

Let's take a deeper look at the trio.

Grab a massive yield on this telecom giant

Bradley Guichard (Verizon): Verizon stock has fallen out of favor lately -- and rightly so. The company has struggled to meaningfully grow revenue over several quarters. The lack of growth has led to an 11% drop year to date. But here's the silver lining: The bad news may already be priced in, and the yield is now 5.7%. 

Verizon posted anemic growth in the second quarter of 2022 -- just 9% year over year in a period of rising prices and expenses. The operating margin fell 4% year over year but still came in at a healthy 27.9%. Verizon also continues to post a margin of earnings before interest, taxes, depreciation, and amortization (EBITDA) over 40%. The results are far from stellar considering the company's history but nowhere near a disaster. 

There is no doubt that low consumer sentiment and inflation are hurting Verizon right now. But these are temporary obstacles the company can work through. Without these challenges, investors wouldn't be able to snag Verizon's highest dividend yield in over a decade.

VZ data by YCharts

Verizon's growth plan includes expanding 5G coverage to 175 million people by the end of the year and pushing to increase its subscriber base for broadband. The company is investing heavily in capital expenditures now and expects this to slow by 2024, leaving more cash for dividends and stock buybacks. 

Speaking of dividends, Verizon has faithfully paid one for 21 years and raised it annually for the past 17 years. The company has been through recessions and other economic upheavals along the way but still sent shareholders those quarterly checks. Verizon has generated $7.2 billion in free cash flow and paid $5.4 billion in dividends in the first half of 2022, so the dividend appears safe, especially given its predictable results. 

Verizon is facing challenges that have stunted growth and caused investors to run. The result is a stock with a positive risk-reward setup and a very enticing yield. This could make for a timely buy for patient passive income investors. 

Passive income potential and recurring sales with Pool Corp.

Josh Kohn-Lindquist (Pool Corp.): Down 34% in 2022, appropriately named swimming pool supplies distributor Pool Corp. has been unable to impress investors, despite posting 15% sales growth in the second quarter of 2022.

Making this solid revenue growth even more impressive is that it was on top of 40% growth year over year in Q2 2021. Best yet for investors, this success on the top line flowed through to Pool Corp.'s profits as its earnings per share (EPS) grew at an even faster clip of 20% year over year in its most recent quarter.

Thanks to this confounding combination of impressive earnings and declining share price, the company trades at a price-to-earnings (P/E) ratio lower than at any point in the last decade.

POOL PE Ratio Chart

POOL PE Ratio data by YCharts

Now sporting an attractive 5% earnings yield -- which is the inverse of its P/E ratio -- Pool Corp. offers immense passive income potential to investors, as it could quadruple its dividend payments and still have excess earnings remaining.

So how does Pool Corp. generate this seemingly outsize profitability?

The simplest answer is two of investors' favorite words: recurring revenue. Despite new pool construction remaining important to the company's long-term operations, 58% of its sales come from recurring and non-discretionary maintenance supplies and repair products. 

On top of this 58%, an additional 22% of sales is derived from the replacement and refurbishment of pools, which the company considers "somewhat discretionary." The combination of these revenue streams means that 80% of Pool Corp.'s sales are recurring.

This recurring revenue leaves the company well insulated from the fickle nature of the housing market and helps explain how Pool Corp. has delivered annualized shareholder returns of nearly 26% over the last decade.

In its guidance for 2022, management expects EPS to grow by 20% to 25%, with its longer-term growth outlook being in the mid-teens for the foreseeable future. With this EPS growth rate registering higher figures than Pool Corp.'s P/E of 20, it could represent growth at a reasonable price.

Thanks to this relatively cheap growth outlook, Pool Corp.'s 21% annualized dividend growth rate over the last five years and its surprisingly steady recurring revenue, investors should consider this unique stock for its promising passive income potential.

Meeting the needs of the rural lifestyle

Jeff Santoro (Tractor Supply Co.): Over the long term, Tractor Supply Co. has been a market-beating investment. Over the past one, three, and five years, Tractor Supply has outpaced the total gain of the S&P 500 by 9%, 35%, and 187%, respectively. However, the story in 2022 has been less rosy. Year to date, Tractor Supply is down 19%, compared to the S&P 500's loss of 12%.

The short-term stock movement belies the strength of this business and presents a buying opportunity for investors. Tractor Supply has shown consistent revenue growth, profitability, and cash generation and is navigating the inflationary environment with only a minor impact to its margins. Add in the dividend, and the investment picture becomes even more compelling.

Tractor Supply, which is a retailer that focuses on customers living the "rural lifestyle," recently reported second-quarter 2022 results that demonstrated the strength of the business. Revenue for the quarter was $3.9 billion, a year-over-year increase of 8.4%. Comparable store sales were up 5.5%, which included average ticket growth of 7.5%. 

These sales were driven by everyday needs such as consumable products and animal feed. This should be of interest to investors as it shows that even in uncertain economic times, customers still have a need to visit Tractor Supply stores to buy necessities. 

Importantly, Tractor Supply posted positive profitability results as well. Gross profit increased 7.7%, and even though the gross margin decreased by 24 basis points, that's a small impact considering the inflationary pressures the company faced. Tractor Supply's price-management actions and other initiatives were able to prevent the gross margin decline from being larger.

Operating expenses also trended in a positive direction. Selling, general, and administrative (SG&A) expenses were 22.1% of the company's revenue, an improvement from 22.3% in the year-ago quarter. This led to an operating income increase of 7% and an earnings per share (EPS) jump of 10.7%. Considering the economic headwinds, these are impressive results.

Lastly, Tractor Supply uses its free cash flow generation to reward shareholders. In Q2, the company repurchased $188 million of its stock and paid $103 million in dividends. Tractor Supply's dividend yield is currently 1.5%, only slightly lower than the S&P 500's 1.7%.