Three Outstanding S&P 500 Dividend Stocks Experiencing Declines of 25%, 60%, and 26%, Potential Long-Term Investments
If you're aiming for dividend stocks to generate income, with quality being essential, timing can also significantly impact your returns. Acquiring dividend stocks while they trade at a discount allows you to buy more shares, thereby boosting your effective yield.
Let's dive into three top dividend payers from the S&P 500 current on sale, perfect additions to your portfolio.
1. Merck
Merck, a pharmaceutical giant, has seen fluctuations in its growth decades ago but still remains as a robust income-generating machine for investors. With a constant dividend growth for 14 years, it's a reliable income source that leverages its enormous size to either develop new drugs or acquire them. For instance, its top-selling cancer drug, Keytruda, was acquired from Schering-Plough during a 2009 acquisition.
Merck's stock is down 25% from the June peak. Despite an industry shift to a more competitive landscape, its forward-looking dividend yield offers a tempting 3.3% reward for investors.
2. Nike
Nike's stock hit a stumbling block in 2022 due to a mix of setbacks like supply and distribution challenges, evolving consumer preferences, economic slowdown, and perceived lack of innovation. As a result, the stock plummeted, losing nearly 60% from its peak.
However, the sell-off could be overblown. With a new CEO Elliott Hill and wholesale operations reset, Nike is poised to recover. A return to the stock's heights may not be far, considering the company's dominant market presence, brand strength, and commitment to innovation.
Nike's forward-looking dividend stands at 2.2%. With 23 years of uninterrupted dividend growth, the company offers reliable income for investors.
3. PepsiCo
Lastly, PepsiCo is also down 26% from its mid-2023 peak. Inflation has hit sales hard, driving the stock lower. However, PepsiCo's resilience is inspiring. Despite the setbacks, the company is adapting to the cost increases and enjoys a stable consumer expenditure growth.
PepsiCo is still a powerful investment with a 52-year unbroken streak of raising its dividends. The company provides a quarterly dividend of $1.355 per share, yielding a 3.6% dividend.
These three stocks are on sale, offering investors massive dividend yields and stable income. Investors who act now can benefit from these opportunities and enjoy a steady income stream from these tried-and-true dividend paying giants.
Investing in these discounted stocks can significantly boost your finance, as the high dividend yields from Merck, Nike, and PepsiCo provide a steady income stream. The pharmaceutical giant Merck, for instance, offers a tempting 3.3% reward with its forward-looking dividend, despite a recent market downturn.
