3 Magnificent S&P 500 Dividend Stocks Down 25%+ to Buy and Hold Forever
Despite some volatility earlier this year, the S&P 500 has rallied about 10% over the last 12 months. However, while most stocks are up in the past year, several have missed the market's current rally.
Alexandria Real Estate Equities (NYSE: ARE), Oneok (NYSE: OKE), and PepsiCo (NASDAQ: PEP) are currently down more than 25% from their 52-week highs. The silver lining to their sell-offs is that dividend yields move in the opposite direction of stock prices. Because of that, they currently offer much higher yields. With magnificent records of growing their payouts, they're great stocks to buy and hold for a potential lifetime of dividend income.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »
A healthy dividend
Alexandria Real Estate Equities' stock price has tumbled over the past year due to slowing demand for lab space. As a result, the healthcare REIT 's yield has risen above 7%.
However, the life science real estate pioneer has one of the largest and highest-quality portfolios in the sector, leased to a leading tenant group. Because of that, it generates durable and high-quality cash flows, 57% of which it pays out in dividends. That conservative payout ratio enables it to retain meaningful excess free cash flow to fund development projects. Alexandria also has a fortress balance sheet, giving it significant financial flexibility.
Alexandria is investing heavily in developing and redeveloping more lab space for the life science sector. These projects will supply it with incremental streams of durable rental income as they stabilize in the coming years. That should enable the REIT to continue increasing its dividend. It has grown its payout at a 4.5% average annual rate over the past five years.
A lot of fuel to continue growing
Oneok's stock price has tumbled due in part to lower oil prices. That has driven up the energy midstream company's dividend yield to around 5%.
However, the pipeline company has demonstrated the durability of its integrated midstream platform over the years. It has grown its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for 11 straight years (and at an impressive 16% annualized rate), which included two significant oil market downturns. Fueling that growth has been a combination of organic expansion and value-enhancing acquisitions.
Oneok's durable midstream business model has enabled it to deliver more than a quarter century of dividend stability and growth. While the pipeline company hasn't increased its payout every single year, it has nearly doubled its payment over the past decade.
The company is targeting to increase its dividend by 3% to 4% annually in the future. It should have plenty of fuel to achieve that target. Oneok expects to continue benefiting from a recent string of acquisitions, which should continue boosting its bottom line through 2027 as it captures deal synergies. In addition, the company has several expansion projects underway, including an export terminal and related pipeline that should enter commercial service in early 2028.
A satisfying income stream
PepsiCo's stock slump has pushed the food and beverage giant's dividend yield up toward 4.5%. That's a tasty yield for a company with PepsiCo's magnificent dividend-growth track record. It recently extended its growth streak to 53 straight years, keeping it in the elite group of Dividend Kings.
The company should have plenty of pop to continue pushing its payout higher. It's investing heavily to organically grow its revenue and bolster its margins through product innovation and productivity enhancements. PepsiCo anticipates these investments will drive 4% to 6% annual organic revenue growth and high-single-digit earnings-per-share (EPS) increases over the long term.
PepsiCo also has a strong balance sheet, which it's using to accelerate the transformation of its portfolio toward healthier options. It recently closed its $1.7 billion deal for healthier soda maker Poppi and acquired Siete and Sabra. These deals should enhance its ability to continue increasing its dividend in the future.
A great time to buy these top dividend stocks
Shares of Alexandria Real Estate Equities, Oneok, and PepsiCo have sold off over the past year. Because of that, these magnificent dividend growth stocks currently offer much higher yields. With more growth ahead, they're great dividend stocks to buy and hold for a potential lifetime of income.
Should you invest $1,000 in PepsiCo right now?
Before you buy stock in PepsiCo, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and PepsiCo wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $713,547!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $966,931!*
Now, it's worth noting Stock Advisor 's total average return is1,062% — a market-crushing outperformance compared to177%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor.
See the 10 stocks »
*Stock Advisor returns as of June 23, 2025
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Globe and Mail
an hour ago
- Globe and Mail
Canadian Analyst Coverage Updates: June 30th, 2025
Analyst Updates (Canada) Advantage Energy Ltd. (AAV:CA) had its price target raised to $12.00 by RBC Capital Markets, with the firm maintaining a Sector Perform rating. Air Canada (AC:CA) received a target price update to $25.00 from Citigroup, which reaffirmed its Buy rating. Air Canada (AC:CA) also saw Morningstar maintain an Underperform rating with a target of $17.50. ARC Resources (ARX:CA) had its target price updated to $34.00 by RBC Capital, which kept a Buy rating. Avino Silver & Gold (ASM:CA) received a target update to $3.50 from Roth MKM, maintaining a Hold rating. Birchcliff Energy Ltd. (BIR:CA) had its price target raised to $8.00 by RBC Capital Markets, maintaining an Outperform rating. Freehold Royalties (FRU:CA) had its target updated to $17.00 by RBC Capital, with a continued Buy rating. Guanajuato Silver Company (GSVR:CA) received a target update from Roth MKM to $0.45, reiterating a Buy rating. Headwater Exploration (HWX:CA) had its target updated to $9.00 by RBC Capital, keeping a Hold rating. Hudbay Minerals (HBM:CA) received a new target of $17.00 from Raymond James, maintaining a Buy rating. Kelt Exploration Ltd. (KEL:CA) saw its target price raised to $8.50 by RBC Capital Markets, with an Outperform rating. Kiwetinohk Energy Corp. (KEC:CA) had its target increased to $21.00 by RBC Capital Markets, with an Outperform rating maintained. MAG Silver (MAG:CA) received a price target update to $21.00 from Roth MKM, maintaining a Hold rating. NuVista Energy Ltd. (NVA:CA) had its target raised to $16.00 by RBC Capital Markets, continuing with a Sector Perform rating. Paramount Resources (POU:CA) received a target update from RBC Capital to $23.00, holding a Hold rating. Peyto Exploration & Dev (PEY:CA) had its target revised to $21.00 by RBC Capital, maintaining a Hold rating. PrairieSky Royalty (PSK:CA) saw its target increased to $35.00 by RBC Capital, maintaining a Buy rating. Rogers Communications Inc. (RCI-B:CA) received a target update to $53.00 from National Bank, which reiterated its Outperform rating. Silvercorp Metals (SVM:CA) had its target raised to $6.75 by Roth MKM, maintaining a Buy rating. Strathcona Resources Ltd. (SCR:CA) received a new target of $42.00 from National Bank, with an Outperform rating. Tamarack Valley Energy Ltd. (TVE:CA) had its price target raised to $6.00 by RBC Capital Markets, keeping an Outperform rating. TC Energy Corporation (TRP:CA) saw Scotiabank maintain an Outperform rating with a price target of $77.00. Tecsys Inc. (TCS:CA) had its price target lowered to $47.00 by Ventum Financial, while maintaining a Buy rating. Telus (T:CA) received a price target update to $22.00 from Bank of America Securities, keeping a Hold rating. Topaz Energy Corp (TPZ:CA) had its target updated to $32.00 by RBC Capital, reaffirming a Buy rating. Tourmaline Oil (TOU:CA) received a new target of $78.00 from RBC Capital, maintaining its Buy stance. Vizsla Royalties Corp. (VROY:CA) had its Outperform rating maintained by CIBC World Markets, with a target price of $4.00. Whitecap Resources (WCP:CA) saw its target price updated to $14.00 by RBC Capital, which kept a Buy rating.
Globe and Mail
2 hours ago
- Globe and Mail
U.S. Senate's long day turns to night as Republicans work to shore up support on Trump's big bill
The Senate's long day of voting churned into a long Monday night, with Republican leaders grasping for ways to shore up support for President Donald Trump's big bill of tax breaks and spending cuts while fending off proposed amendments from Democrats who oppose the package and are trying to defeat it. The outcome was not yet in sight. Senate Majority Leader John Thune of South Dakota acknowledged the Republicans are 'figuring out how to get to the end game.' And House Speaker Mike Johnson signaled the potential problems the Senate package could face when it is eventually sent back to his chamber for a final round of voting, which was expected later this week, ahead of Trump's Fourth of July deadline. 'I have prevailed upon my Senate colleagues to please, please, please keep it as close to the House product as possible,' said Johnson, the Louisiana Republican, as he left the Capitol around dinnertime. House Republicans had already passed their version last month. U.S. Republicans agree to drop retaliatory tax from Trump's budget bill, citing G7 agreement It's a pivotal moment for the Republicans, who have control of Congress and are racing to wrap up work with just days to go before Trump's holiday deadline Friday. The 940-page 'One Big Beautiful Bill Act,' as it's formally titled, has consumed Congress as its shared priority with the president. The GOP leaders have no room to spare, with narrow majorities in both chambers. Thune can lose no more than three Republican senators, and already two – Sen. Thom Tillis of North Carolina, who warns people will lose access to Medicaid health care, and Sen. Rand Paul of Kentucky, who opposes raising the debt limit – have indicated opposition. Tillis abruptly announced over the weekend he would not seek reelection after Trump threatened to campaign against him. Attention quickly turned to key senators, Lisa Murkowski of Alaska and Susan Collins of Maine, who have also raised concerns about health care cuts, but also a loose coalition of four conservative GOP senators pushing for even steeper reductions. And on social media, billionaire Elon Musk was again lashing out at Republicans as 'the PORKY PIG PARTY!!' for including a provision that would raise the nation's debt limit by $5 trillion, which is needed to allow continued borrowing to pay the bills. Senate Democratic Leader Chuck Schumer of New York said his side was working to show 'how awful this is.' 'Republicans are in shambles because they know the bill is so unpopular,' Schumer said as he walked the halls. The Democrats have proposed dozens of amendments in what's called a vote-a-rama, though most were expected to fail. A new analysis from the nonpartisan Congressional Budget Office found 11.8 million more Americans would become uninsured by 2034 if the bill became law. The CBO said the package would increase the deficit by nearly $3.3 trillion over the decade. The White House said it was counting on Republican lawmakers to 'get the job done.' 'Republicans need to stay tough and unified during the home stretch,' White House press secretary Karoline Leavitt said. Few Republicans appear fully satisfied as the final package emerges, in either the House or Senate. Tillis said it is a betrayal of the president's promises not to kick people off health care, especially if rural hospitals close. Collins has proposed bolstering the $25 billion proposed rural hospital fund to $50 billion, and Murkowski was trying to secure provisions to spare people in her state from some health care and food stamp cuts while also working to beef up federal reimbursements to Alaska's hospitals. They have not said how they would vote for the final package. At the same time, conservative Senate Republicans – Rick Scott of Florida, Mike Lee of Utah, Ron Johnson of Wisconsin and Cynthia Lummis of Wyoming – have proposed steeper health care cuts and filed into Thune's office for a near-midnight meeting. As the first few Senate amendments came up Monday – to strike parts of the bill that would limit Medicaid funds to rural hospitals or shift the costs of food stamp benefits to the states – some were winning support from a few Republicans, though none passed. Sen. Mike Crapo, the GOP chairman of the Finance Committee, dismissed the dire predictions of health care cuts as Democrats trafficking in what he called the 'politics of fear.' Explainer: What's in Trump's big budget bill? From cuts to taxes and Medicaid, here's what to know All told, the Senate bill includes $4.5 trillion in tax cuts, according to the latest CBO analysis, making permanent Trump's 2017 rates, which would expire at the end of the year if Congress fails to act, while adding the new ones he campaigned on, including no taxes on tips. The Senate package would roll back billions of dollars in green energy tax credits, which Democrats warn will wipe out wind and solar investments nationwide. It would impose $1.2 trillion in cuts, largely to Medicaid and food stamps, by imposing work requirements on able-bodied people, including some parents and older Americans, making sign-up eligibility more stringent and changing federal reimbursements to states. Additionally, the bill would provide a $350 billion infusion for border and national security, including for deportations, some of it paid for with new fees charged to immigrants. Unable to stop the march toward passage, the Democrats as the minority party in Congress are using the tools at their disposal to delay and drag out the process. Democrats forced a full reading of the text, which took 16 hours, and they have a stream of amendments. Sen. Patty Murray of Washington, the ranking Democrat on the Appropriations Committee, raised particular concern at the start of debate late Sunday about the accounting method being used by the Republicans, which says the tax breaks from Trump's first term are now 'current policy' and the cost of extending them should not be counted toward deficits. She said that kind of 'magic math' won't fly with Americans trying to balance their own household books.
Globe and Mail
2 hours ago
- Globe and Mail
Your daily horoscope: July 1, 2025
The more friends and relatives and colleagues try to persuade you that this way or that way of doing things is best the more you will need to shut them out of your mind and make your own decisions. The only voice that matters is your inner voice. There is a lot of dead wood in your life at the moment and a big clean-out is needed. Start by getting rid of a few so-called friendships that are pretty much one-way traffic when it comes to who profits from them. They profit and you pay. If your workload is getting on top of you then it is time to make changes. Refuse to take on any more chores and responsibilities and start offloading some of those you already have on friends and colleagues who are clearly not pulling their weight. You need to get serious about something of a creative or artistic nature, especially if you are the sort of Gemini who has half a dozen activities on the go at the same time. Focus on one, maybe two, goals and forget about the rest for a while. You have been finding it much easier to express yourself of late and that's a good thing, but you also need to know when to hold back so as not to give away information that could be of use to rivals and competitors. Knowledge is power! It may come as a shock to discover that someone you had total trust in has not been totally honest with you, but don't overreact. Most likely they have a very good reason for keeping secrets from you – so you can still be friends. Changes you made earlier in the year are beginning to bear fruit but if you are smart you won't harvest all the goodies just yet. If you can hold back from cashing in then your profits will double and maybe even treble over the next few months. You may not have accomplished as much over the first half of the year as you had expected to but you have still done a lot and can be proud of your efforts. A slight adjustment in your plans can make the second half of 2025 truly memorable. You are not the sort to give up on something just because the going is tough. On the contrary, the fact that you have been falling behind in recent weeks will make you even more determined to catch up with and then pass your rivals. So many changes are taking place in the world around you that you may be getting worried as to where they might lead. The good news is that whatever happens in the weeks and months ahead your indomitable spirit will help you make the best of it. You must stick up for yourself over the next 24 hours, because if you don't protect your interests you can be certain that no one else will. Don't worry if you make an enemy or two along the way – let others know you won't be bullied. Someone you meet while on the move will intrigue you with their wit and wisdom but you must not believe every word they say. Just because they are good at communicating ideas does not mean those ideas can be allowed to supplant your own. If you want to make the most of your creative talents you will first have to let go of something that takes up too big a chunk of your time and energy. Be ruthless today and get rid of anything and everything that does not pay its way. Discover more about yourself at
