2 Magnificent S&P 500 Dividend Stocks Down Over 39% to Buy and Hold Forever

Nike - Nike's stock is down 59% from its previous high, presenting a potential buying opportunity [1] - The company recently hired Elliott Hill, a former 32-year Nike veteran, as its new CEO, which could catalyze a turnaround [1] - Nike's revenue fell 8% year-over-year in the most recent quarter, reflecting a challenging economic environment [9] - The company generated $4.9 billion in net income over the last year and paid out 34$0.40, resulting in a forward yield of 2.19% [11] - The athletic wear market is expected to reach $451 billion by 2028, with Nike being the top brand with$49 billion in annual revenue [8] - Nike benefits from massive scale, partnerships with top athletes, and spends close to 10% of its revenue ($4 billion annually) on demand creation [10] Hershey - Hershey's stock is down 39$1.8 billion in net income on $10.8 billion in revenue over the last four quarters [3] - Hershey paid out 59% of its earnings in dividends over the last year, bringing its dividend yield to 3.29%, the highest level in over a decade [3] - The company owns several top chocolate and snack food brands, including Hershey's, Jolly Rancher, Reese's, Twizzlers, and Skinny Pop [4] - Hershey is expected to return to growth once cocoa prices decline, as higher commodity prices incentivize producers to boost supply, eventually driving prices down [5] - The company has paid a growing dividend since 1972, demonstrating resilience through periods of high cocoa prices and economic recessions [6] Market Context - The market indices hit new highs in 2024, but some top consumer brands saw their share prices tumble to new lows [7] - This presents an opportunity for income investors to buy quality dividend stocks offering their highest yields in years [7]