2 Magnificent Dividend Stocks Down 33% and 39% to Buy Right Now While Their Dividend Yields Are Near Once-in-a-Decade Highs

Group 1: Hershey Company - The Hershey Company operates in recession-resistant industries, showcasing stability with a five-year beta of 0.37, indicating lower volatility compared to the broader market [2] - The company's current drawdown of 33% from its all-time high is its third-largest in three decades, following significant drops during past market crashes [2] - Despite recent challenges, Hershey's enterprise value to EBITDA ratio has improved from an all-time high of 24 to 15, indicating a more reasonable valuation [3] - Hershey is facing short-term headwinds, including a new enterprise resource planning system and fluctuating cocoa prices, but its market-leading brands are expected to endure [4] - The company has increased its dividend payments by 32% over the past three quarters, with the current payout using only 55% of net income, allowing for future increases [5] - Hershey's leadership position and recent acquisitions, such as Skinny Pop Popcorn and Dot's Homestyle Pretzels, have contributed to sales growth of 13% and 65% annually since 2019 [4][6] Group 2: MTY Food Group - MTY Food Group's stability is attributed to its diversified portfolio of approximately 90 quick-service food brands, catering to various cuisines and seasonal demands [7] - The company's asset-light model, primarily through franchising, allows for stable free cash flow margins, maintaining a 20% margin during the pandemic [8] - MTY has made 27 acquisitions worth over $1.7 billion in the last decade, effectively redeploying free cash flow into new ventures [9] - The current dividend yield of 2.3% is at a decade-high outside of the 2020 crash, utilizing only 14% of free cash flow, indicating potential for significant future increases [9] - MTY's shares are trading at an EV/FCF ratio of 10, prompting management to buy back shares at discounted prices, with a 39% drop from all-time highs [9][10] - The company has reduced its share count by 1.2% annually since 2019, enhancing cash returns to shareholders through dividends [10]