Core Insights - Dividends are a reliable source of income for shareholders, with healthy and growing dividend-paying stocks typically maintaining regular payouts regardless of economic conditions [1] - A decline in stock prices can lead to higher dividend yields, as the yield is calculated by dividing the total annual payout by the current share price [2] Company Summaries - United Parcel Service (UPS): - The stock has decreased by approximately 33% year to date, currently yielding 7.8%, which translates to an expected annual income of about $390 for a $5,000 investment [4] - The decline is attributed to economic uncertainties, reduced online shopping, and a strategic reduction in business with Amazon [4][5] - The forward-looking price-to-earnings (P/E) ratio is 11.3, significantly below its five-year average of 15.8, indicating potential value [5] - Target: - Target has reported net sales of $107 billion in 2024 and operates 1,989 stores in the U.S., employing over 400,000 people [8] - The stock has fallen about 35% year to date, influenced by the abandonment of its diversity, equity, and inclusion (DEI) policy and ongoing supply chain issues [9]
3 Magnificent S&P 500 Dividend Stocks Down 33% to 40% to Buy and Hold Forever -- Including United Parcel Service (UPS) and Target (TGT)