2 Quality Dividend Stocks Down Over 40% to Buy Before a Rebound

Core Viewpoint - The stock market's recent climb has led to historically low dividend yields, with the S&P 500 average yield at 1.24%, the lowest since 2000. This environment presents opportunities in retail stocks that offer attractive yields despite weak consumer spending trends [1]. Group 1: Nike - Nike is the leading footwear brand globally, generating $49 billion in trailing 12-month revenue, with two-thirds from footwear sales [2]. - The company experienced an 8$2.06 from $3.73 in fiscal 2024, but expect a rebound to$2.50 in fiscal 2026, marking a potential low point before recovery [5]. - Nike raised its quarterly dividend by 8% to $0.40, representing 78$77.50 [6]. Group 2: Target - Target has a long-standing history of paying dividends annually since 1967, indicating a resilient business model capable of weathering economic fluctuations [7]. - The company is sensitive to consumer spending trends, with its stock down 47% from its peak, and comparable sales grew only 0.3% year-over-year in the third quarter [8]. - Holiday sales showed improvement, with total sales up 2.8% and comparable sales up 2%, particularly in discretionary categories like apparel and toys [8]. - Analysts expect Target to report earnings of $8.67 in 2025, slightly down from the previous year, but anticipate a rebound to$9.27 in 2026 [9]. - The current quarterly dividend is $1.12, representing 52$140.75 [9].