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3 Magnificent S&P 500 Dividend Stocks Down 15% to Buy and Hold Forever
FRTFederal Realty Investment Trust(FRT) The Motley Fool·2025-04-23 01:33

Core Viewpoint - The S&P 500 index has declined over 15% from its recent peak, raising concerns about potential recession due to tariffs, making dividend-paying stocks like ExxonMobil, Federal Realty, and PepsiCo more attractive for investors seeking stable income [1][10] ExxonMobil - ExxonMobil's shares have dropped over 15%, resulting in a dividend yield of 3.8%, which is more than double the S&P 500's yield of 1.4% [2] - The company has a strong dividend history, recently increasing its payment by 4%, marking 42 consecutive years of dividend growth, a milestone achieved by only 4% of S&P 500 companies [2] - ExxonMobil generated 34.4billioninfreecashflowaftercapitalexpenseslastyear,significantlycoveringits34.4 billion in free cash flow after capital expenses last year, significantly covering its 16.7 billion dividend payout [3] - The company's long-term strategy aims to boost annual cash flow by 30billionby2030throughcostsavingsandinvestmentsinlow−costassets[3]FederalRealtyInvestmentTrust−FederalRealty′sstockhasfallenover2030 billion by 2030 through cost savings and investments in low-cost assets [3] Federal Realty Investment Trust - Federal Realty's stock has fallen over 20%, leading to a dividend yield of 4.8%, with 57 consecutive years of dividend increases, placing it among the elite Dividend Kings [4] - The company focuses on high-quality shopping centers and mixed-use properties in affluent suburban areas, ensuring high demand and enabling steady rental rate increases [5] - Federal Realty invests in upgrading its portfolio, redeveloping existing properties, adding new property types, and acquiring high-quality shopping centers while divesting lower-quality assets [6] PepsiCo - PepsiCo announced a 5% dividend increase, extending its growth streak to 53 years, with its stock down over 20%, resulting in a forward dividend yield of 4% [7] - The company has a diverse portfolio of brands that generate stable and growing earnings, targeting organic revenue growth of 4% to 6% annually while aiming for high-single-digit earnings-per-share growth [8] - PepsiCo maintains a strong balance sheet, allowing for strategic acquisitions to accelerate growth, including a recent 1.7 billion deal for Poppi and a $1.2 billion acquisition of Siete [9]