2 Magnificent S&P 500 Dividend Stocks Down 20% or More to Buy and Hold Forever

Group 1: Realty Income - Realty Income is a REIT that owns over 15,000 properties, primarily occupied by retail tenants, focusing on recession-resistant tenants with long-term leases that include annual rent increases [2][3] - The stock is currently down about 22% from its all-time high, largely due to rising interest rates, but could benefit significantly from anticipated rate cuts by the Federal Reserve [2][3] - Realty Income's dividend has consistently grown, yielding just over 5% at the current price, and has rebounded 26% from its 2024 lows due to expectations of rate cuts [2][3] Group 2: Capital One Financial - Capital One is down more than 20% from its 2021 all-time high despite being a strong performer in 2024, with shares trading 10% below book value [4][5] - The company has a high net interest margin of 6.7%, benefiting from high-interest credit card products, with the average credit card interest rate nearly 25% [4][5] - The pending acquisition of Discover will expand Capital One's credit card portfolio and provide it with a payment network, reducing reliance on Visa and Mastercard [5] Group 3: Investment Outlook - Both Realty Income and Capital One are seen as long-term investment opportunities, with short-term catalysts such as interest rates and the Discover acquisition potentially impacting their share prices [6]