10 Magnificent S&P 500 Dividend Stocks Down Over 10% to Buy and Hold Forever

Core Viewpoint - The article highlights S&P 500 dividend stocks that have experienced significant price declines, presenting them as attractive buying opportunities for long-term investors due to their strong fundamentals and consistent dividend growth. Group 1: Overview of Dividend Stocks - Dividend stocks are powerful wealth compounders, with the S&P 500 index showing over 300% growth in the past 25 years, and total returns exceeding 550% when including reinvested dividends [1] - The article identifies 10 S&P 500 dividend stocks that are currently trading at least 10% below their all-time highs, suggesting they are good buys for long-term holding [2] Group 2: Individual Stock Analysis - Johnson & Johnson: Down 11.5%, yield 3.4%, generated $95 billion in free cash flow over five years, returning 60% to shareholders, and has increased dividends for 62 consecutive years [4] - ExxonMobil: Down 11.6%, yield 3.7%, generated $55 billion in cash flow from operations in 2024, with a 42-year streak of dividend increases, and focusing on boosting cash flows post-acquisition of Pioneer Natural Resources [5] - Procter & Gamble: Down 14%, yield 2.7%, restructuring operations to target mid- to high-single-digit core earnings per share growth, and has increased dividends for 69 consecutive years [6][7] - NextEra Energy: Down 19%, yield 3.3%, operates the largest electric utility in America and is the largest producer of wind and solar energy, with over 20 years of dividend increases [8] - Chevron: Down 19%, yield 4.8%, has increased dividends for 38 consecutive years, and recently acquired Hess in a $53 billion deal [10] - American Water Works: Down 24%, yield 2.4%, serves over 14 million customers, targeting 7% to 9% annual dividend growth [11][13] - Realty Income: Down 29%, yield 5.6%, pays monthly dividends and has increased them for 110 consecutive quarters, owning over 15,000 properties [14] - Oneok: Down 29%, yield 5%, has a network of pipelines spanning 60,000 miles, targeting 3% to 4% annual dividend growth [15] - Nucor: Down 30%, yield 1.7%, America's largest steel company, has increased dividends for 52 straight years, and aims to return at least 40% of earnings to shareholders [16] - Medtronic: Down 33%, yield 3.3%, world's largest medical device manufacturer with $33.5 billion in revenue, plans to divest its diabetes business, and is close to becoming a Dividend King [18]