3 Magnificent S&P 500 dividend stocks down 62%, 63%and 64%to buy and keep forever

• After a few years of insufficient results, the target of the retailer is ready for a rebound in more discretionary editions.

• The post-pandemic hangover of pharmaceutical pfizer can finally decrease.

• Pepsico shares the long -term weakness is logical, but the future looks promising than the recent past.

• 10 shares that we like more than Target ›

With China and the United States who finally talk to each other about rates, there is a spark of hope for the macro -economic horizon. Investors may want to keep thinking and acting defensively, given that we still are still not exactly in store. That would mean that the possession of less risky growth shares than you could normally, and to keep a few more dividend payers that can generate a reliable cash flow, regardless of the economic environment.

With that as a background, here is an overview of three solid S&P 500 Dividend supplies that are much more driven than they deserve, which means that their dividend revenues to levels are too good to leave.

There is no denial Walmart The stock is better performed Goal (NYSE: TGT) Stock since the dust of the Pandemie finally started to establish in 2021. Indeed, although Walmart is back in sight of his record high in February, his target shares low for almost five years. The inappropriate performance of the shares reflect the different results of the two retailers. The higher “cheap chic” tick from Target has not resonated that much with consumers who are simply looking for affordable consumer tablets in this high inflation environment.

However, nothing lasts forever. As the time marches without any hint of an actual recession that involves, the closer we get closer to the economic growth that creates the demand for the more premium discretionary supply from Target.

We already see a glimpse of this recovery, even if it is difficult to believe that the world is ready to recover in the midst of turbulence with a rate. Target, for example, was his income and winning scores for the quarter that ended at the beginning of February, while the turnover of the same stores improved by 1.5%. That is not much, but it is a respectable start of a change after several years in insufficient sales. In this spirit, although analysts are not looking for a lot of heroic growth this year, the top line would have to swell by almost 3% next year, following the profit. That would actually be a big win for this recently besieged retailer.

This does not mean that it will be easy – or consistent – to be clear. Although there is a reason for hope that consumer spending can grow again (perhaps stimulated by lower interest rates), the American economy is still on shaky ground.

With target shares now more than 60% compared to their High 2021 and acting at a future -oriented price/winning stratio of less than 12, the majority of the risk has been eradicated. Newcomers will intervene while the future -oriented yield is just over 4.6%.

It has been a tough few years for drug maker Pfizer (NYSE: PFE). The shares are now falling 64% of the wave driven by Pandemie that peaked at the end of 2021, when the sale of his blockbuster COVID-19 vaccine (Comirnaty) and antiviral treatment (Paxlovid) began to tap off. The company was unable to compensate for this decrease in total turnover of 40% with something else in its portfolio.

However, as the old saying goes, nothing takes forever. This multi -year silence can finally end and make way for new growth.

The key to that potential growth is of course the candidates in his development frame. Although the pharmaceutical giant disappeared last month, by the development of a weight loss medicine, it had hoped to compete with people like Wegovy and Ozempic, 108 drug candidates have still undergone. Of these, there are 30 tests at a late stage and will soon be ready for the final approval process of the FDA. Oncology -Medicines are prominently present in this line -up thanks to the acquisition of Seagen in 2023 by the company. Although that is always a competitive market, effective drugs for cancer are also reliable.

Pfizer does not stop there. Although the company became a bit sloppy with his finances during and due to the pandemic, it is now being cited and intended to pay another $ 1.7 billion in expenses in the next two years, with plans to ultimately reduce costs with a total of $ 7.7 billion from 2023 to 2027. For the $ 63.6 and 197 billion, the perspective of $ has an intention was the $ 17.7 billion of that income from 2023 to 2023 to 2023 to 2027 to 2027.

Companies cannot be their way to growth, and although the pipeline of Pfizer is promising, even assuming that some of his candidates earn approval, they will not start producing meaningful sales for at least a few years. As CEO Albert Bourla admitted during Pfizer's first quarter of the income conference: “We know that we will not be a strong top-line growth story in the coming three years.”

However, take a step back and consider the larger whole. The dividend of the company is hardly in every pendant and it becomes clearer that Pfizer's things are moving in the right direction. Rates are also not entirely the headache for the company that they are made. This should all be sufficient to turn the tide of the shares rather than later, which means that the dividend yield goes back from its currently elevated 7.7%.

Finally add Pepsico (Nasdaq: Pep) To your list of S&P 500 dividend shares to scoop at a bargain price.

It's strange. Although they are clearly two different companies, one would expect shares of Pepsico and its larger rival, Coca-ColaTo move more or more. But no: because the shares of Coke 2022 have continued to forge on record high territory, while Pepsico shares have fallen 64% compared to their peak at the end of 2021 and still makes new lows.

What gives?

The reduced profit guidance of last month in itself cannot be blamed in itself, because the weakness started well for that. But that back-back-outlook has been in the making for a while.

Pepsico does not enjoy the same scale, operational flexibility or focus that Coca-Cola does. It is also older to cut Outfit Frito-Lay, as well as the Quaker Oats brand, both of which feel the impact of higher costs in a degree that drinks companies are not. The total turnover of Frito-Lay, for example, fell last year, because the company's price increases ultimately led to a decrease of 2.5% on an annual basis in the total sales volume. In the meantime, the total volume of Quaker fell by a good 14%, with the turnover just as lower lower. The stock of Pepsico reflects this headwind as long as the wind blows.

However, as experienced investors can confirm, things change. Performance from the past are no guarantee for future results, which in this case work in the favor of the company – and the shares.

Although the analyst community expects stagnant sales to lead to the profit per share this year slips from $ 8.16 in 2024 to $ 7.97, these same analysts expect a respectable top and bottom-line recovery from next year that should exist in 2027. The possession still has a family of highly tradable brands.

Tarry just not when you see it coming. The forward dividend yield from Pepsico Stock is at a healthy 4.3%. That is based on a dividend that has now been raised for 53 years in a row. That streak is not inclined to end quickly.

Consider this before you buy shares in Doel:

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James Brumley has positions in Coca-Cola. The Motley Fool has positions and recommends Pfizer, Target and Walmart. The Motley Fool has a disclosure policy.

3 beautiful S&P 500 dividend shares with 62%, 63%and 64%to buy and keep forever was originally published by the Motley Fool