3 Magnificent S&P 500 Dividend Stocks Down 25%, 60%, and 26% to Buy and Hold Forever

Core Viewpoint - The article emphasizes the importance of investing in high-quality dividend-paying stocks, particularly when they are trading at a discount, as this can enhance income generation for investors. Group 1: Merck - Merck has experienced a decline in growth compared to its past, with its stock underperforming the S&P 500 for the last 20 years [4][5] - Despite the lack of explosive growth, Merck has maintained a reliable income stream, supporting a dividend that has grown annually for 14 years [5] - The stock is currently down 25% from its peak in June, offering a forward-looking dividend yield of nearly 3.3% [6] Group 2: Nike - Nike's stock has fallen approximately 60% from its late-2021 peak due to various operational challenges and changing consumer preferences [8] - Revenue for the quarter ending in February is expected to decline by 11% year-over-year, contributing to an overall sales dip of about 10% for the year [9] - The company has initiated a leadership change and operational reset, with a forward-looking dividend yield of 2.2%, which has been raised for 23 consecutive years [12] Group 3: PepsiCo - PepsiCo's stock is currently priced 26% below its mid-2023 high, resulting in a projected dividend yield of 3.8% [13] - The company has faced challenges due to inflation, leading to flat revenue and decreased total volume year-to-date [14] - Economic indicators suggest a stabilization in consumer spending and inflation, which may improve PepsiCo's pricing power and cost structure in the near future [15][16] - PepsiCo boasts an impressive track record with 52 consecutive years of annual dividend growth [17]