Title: 3 S&P 500 Dividend Stocks Down 30% (or More) to Buy and Hold Forever
In a market where investors are struggling to find high-yield opportunities, Realty Income, Franklin Resources, and Hormel Foods stand out as down-and-out stocks with attractive dividend yields. Despite their current low stock prices, the stories behind each company reveal potential for long-term growth and stability.
Realty Income, known as the net-lease giant, boasts an investment-grade balance sheet and a portfolio of over 15,400 assets. With a dividend yield near a 10-year high at 5.5%, the stock price is down roughly 30% from its 2020 highs due to rising interest rates. However, the company’s diversified portfolio and access to capital make it a solid choice for conservative dividend investors.
Franklin Resources, an asset manager with $1.6 trillion in assets under management, has increased its dividend annually for 44 consecutive years. Despite facing challenges from mutual fund outflows, the company is expanding into ETFs and alternative investments to offset the impact. With a dividend yield of nearly 5.3%, Franklin Resources has proven its ability to reward investors over time.
Hormel Foods, a Dividend King with 58 consecutive years of annual dividend increases, has seen its stock price decline around 35% from recent highs in 2022. Despite facing challenges such as inflation and slow growth in China, the company’s strong fiscal first-quarter earnings suggest it is regaining its footing. With a yield of 3.2%, Hormel Foods offers a historically attractive opportunity for investors.
While there may be no rush to buy these stocks, investors should consider the potential for long-term growth and stability that Realty Income, Franklin Resources, and Hormel Foods offer. With their attractive yields and solid track records, these companies could be valuable additions to a diversified portfolio.
