2 Overlooked and Unloved Dividend Stocks to Buy and Hold Forever

Group 1: McCormick - McCormick is a global leader in flavor, spices, and seasoning, generating over $6.5 billion in annual sales across 150 countries [3] - The company declared a quarterly dividend of $0.42 per share, marking its 100th consecutive year of dividend payments, with a current yield of 2% [3] - Management's Comprehensive Continuous Improvement (CCI) program contributed to a 60-basis-point improvement in gross margins in Q2 compared to the prior year, with expectations for continued improvement in the second half of 2024 [4] - Focus on innovation in higher-growth product opportunities aims to reverse slowing sales volume, despite a recent divestment affecting sales results [5] Group 2: Stanley Black & Decker - Stanley Black & Decker is a global leader in tools and outdoor products, owning well-known brands like DeWalt and Craftsman [6] - The company achieved a 28.4% increase in gross margins in Q2, up 600 basis points from the previous year, as part of its cost-reduction efforts [7] - Strong cash generation allowed for $1.2 billion in debt reduction during Q2, alongside a respectable dividend yield of 3% [8] - The company is focused on cutting costs and reinvesting in high-opportunity products and brands, making it a solid long-term hold for income investors [9] Group 3: Investment Outlook - Both McCormick and Stanley Black & Decker have underperformed the S&P 500 over the past three years but are actively working to improve operating efficiencies and cut costs [10] - Both companies possess strong brand portfolios that are expected to drive future growth through innovation and reinvestment [10] - While it may take time for their stock prices to regain traction, they are positioned to rebound and offer respectable dividend yields during the wait [10]