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3 Magnificent S&P 500 Dividend Stocks Down 43%, 20%, and 53% to Buy and Hold Forever | The Motley Fool

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3 Magnificent S&P 500 Dividend Stocks Down 43%, 20%, and 53% to Buy and Hold Forever | The Motley Fool

The market is overlooking the bigger picture for these three names. That means opportunity for you.

Like bargains? Need dividends? No problem. Several of the S&P 500‘s stocks fit both bills at this time, with a bunch of them boasting the makings of a true “forever” holding. Here’s a rundown of three of these best bets right now.

Pfizer

There’s no denying that Pfizer (PFE -0.66%) isn’t quite the pharmaceutical powerhouse it used to be. The loss of patent protection on its blood thinner Lipitor in 2011 was a blow it never quite got over, but it would also be naïve to believe the company’s research and development (R&D) and acquisitions are as strong now as they were in the past. The drugmaking business has also seemingly become even more competitive in the meantime.

That’s why, after a burst of bullish brilliance during and because of the COVID-19 pandemic (Pfizer’s Paxlovid was an approved treatment), this stock’s peeled back 53% from its late 2021 peak.

The long-awaited winds of change are finally blowing, even if in a way that feels more disruptive than helpful. Activist investor Starboard Value is shaking the chains, so to speak, calling Pfizer out for its failures on the drug-development front and the acquisition front. Starboard specifically points out that 2023’s $43 billion acquisition of oncology company Seagen has yet to show meaningful benefit given its high cost, and adds that Pfizer’s failed to turn the 15 drugs it was touting as potential blockbusters in 2019 into those major moneymakers.

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In CEO Albert Bourla’s defense, the coronavirus contagion slowed R&D for most pharmaceutical companies, if only by complicating the logistics of drug trials. Nevertheless, Starboard makes several fair points.

But what does this mean for current and prospective shareholders? While it’s typically better when any organization recognizes its own weaknesses and implements much-needed changes, Starboard Value’s involvement should still drive this overdue overhaul.

Nothing about this drama changes anything about Pfizer’s dividend, by the way. It’s not only paid one every quarter like clockwork for years now, it’s also raised its net annual payment for 15 years in a row. This streak isn’t in any real jeopardy, either.

Newcomers will be plugging into the stock while its forward-looking dividend yield stands at 5.8%.

Realty Income

There’s a decent chance you’ve never heard of Realty Income (O -3.16%). Don’t let its lack of notoriety fool you. This $55 billion S&P 500 constituent is here to stay, and thrive.

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Realty Income is a landlord. It’s structured as a real estate investment trust, or REIT. REITs are investments that trade like stocks, but pass along the bulk of any rental profits generated by that REIT’s underlying real estate portfolio. It’s an easy way for investors to be in the rental real estate business without the usual hassle of buying, selling, finding tenants, and performing maintenance on a property.

There are all kinds of real estate investment trusts, ranging from office buildings to apartment complexes to hotels. Even by REIT standards, though, Realty Income is a bit unusual. Its specialty is retail space.

This potentially raises red flags. The brick-and-mortar retailing industry is largely on the defensive, contending with the rise of online shopping. Don’t be too rattled, though. Realty Income’s tenant list includes the likes of Walmart, FedEx, and Dollar General, just to name a few. These are major companies with staying power, in addition to their vested interest in staying put once they’ve established brick-and-mortar roots.

That’s what this REIT’s numbers say, anyway. Even with the COVID-19 pandemic picking off retailers en masse in 2020, Realty Income’s occupancy for the year held at 97.9%.

Those aren’t the only numbers that make a strong bullish argument for owning this dividend payer that’s currently yielding (on a forward-looking basis) just under 5%. Not only has Realty Income paid a dividend every month — yes, a monthly dividend — for the past 54 years, it has also raised its payouts every quarter for the past 27 years.

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Franklin Resources

Last but not least, add Franklin Resources (BEN 0.69%) to your list of S&P 500 dividend stocks to buy. It’s down 43% from its 2021 post-pandemic peak, and lower by a whopping 65% from its record high reached in late 2013. That weakness has pumped its forward-looking dividend yield up to a healthy 6%.

Investors may be more familiar with the outfit than they realize. This is the company behind Franklin Templeton mutual funds, although it operates several other profit centers beyond the Templeton brand. Technological solutions, alternative lending, and real estate are all within its wheelhouse.

Anyone who’s kept tabs on this company likely knows that it hasn’t always been a stellar performer. While certainly respected within the investment management industry, Franklin struggled to hold on to investors’ money in 2015 and 2016. You may recall that the market had been soaring for some time then, and investors were looking for performance beyond what this investment manager could offer.

Much has changed since then, however. Namely, through a few strategic acquisitions like last year’s purchase options-trading technology company volScout, this mutual fund giant can now deliver more of what investors — individual as well as institutional — are clamoring for.

It’s not exactly easy to see the upside yet. The 2022 bear market that followed the pandemic’s wind-down has made it difficult to determine exactly how much business this company should be doing, and how much profit it should be producing. It’s only easy to see that profit margins still appear to be crimped right now.

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Even so, the investment management’s dividend has grown every year for the past 44 years. Given that the bulk of its revenue is driven not by its funds’ performances but by fees based on a percentage of the assets it’s managing, the cash flow it needs to maintain these payments is actually rather secure.

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Finance

Departing inspector general targets Council Office of Financial Analysis

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Departing inspector general targets Council Office of Financial Analysis

The $537,000-a-year office created in 2014 to advise the City Council on financial issues and avoid a repeat of the parking meter fiasco has failed to deliver on that mission, the city’s chief watchdog said Tuesday.

Days before concluding her four-year term, Inspector General Deborah Witzburg said a shortage of both adequate staff and financial information closely held by the mayor’s office prevents the Council’s Office of Financial Analysis from helping the Council be the the “co-equal branch of government” it aspires to be.

In a budget rebellion not seen since “Council Wars” in the 1980s, a majority of alderpersons led by conservative and moderate Democrats rejected Mayor Brandon Johnson’s corporate head tax and approved an alternative budget, including several revenue-generating items the mayor’s office adamantly opposed.

But Witzburg said the renegades would have been in an even better position to challenge Johnson if only their financial analysis office had been “equipped and positioned to do what it’s supposed to do” — provide the Council with “objective, independent financial analysis.”

“We are entering new territory where the City Council is asserting new, independent authority over the budget process. It can’t do that in a meaningful way without its own access to financial analysis,” Witzburg told the Chicago Sun-Times.

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Chicago Inspector General Deborah Witzburg’s latest report focuses on the Chicago City Council’s Office of Financial Analysis.

Jim Vondruska/Jim Vondruska/For the Sun-Times

But the Council’s financial analysis office, she added, “has never been equipped or positioned to do what it needs to do. It needs better and more independent access to data, and it needs enough staff to do its job. It has a small number of employees and comparatively limited access to data.”

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The inspector general’s farewell audit examined the period from 2015 through 2023. During that time, the financial analysis office budget authorized “either three or four” full-time employees. It now has a staff of five .

Witzburg is recommending a staffing analysis to identify how many people the financial office really needs — and also recommending that the office “get data directly” from other city departments, “ rather than having it go through the mayor’s office.”

The audit further recommends that the office develop “better procedures to meet their reporting requirements” in a timely manner. As it stands now, reports are delivered “sometimes late, sometimes not at all,” the inspector general said.

“We find that those reports have been both not timely and not complete in terms of what they are required to report on and that those reports therefore have provided limited assistance to the City Council in its responsibility to make decisions about the city’s budget,” she said.

The Council Office of Financial Analysis responded to the audit by saying it hopes to add at least three full-time staffers in the short term and has made “some progress” over the last three years in improving their access to data, but not enough.

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The office was created in 2014 to provide Council members with expert advice on fiscal issues.

For nearly two years the reform was stuck in the mud over whether former 46th Ward Ald. Helen Shiller had the independence and policy expertise to lead the office.

Shiller ultimately withdrew her name, but the office was a bust nevertheless. In an attempt to breathe new life into it, sponsors pushed through a series of changes.

Instead of allowing the Budget chair alone to request a financial analysis on a proposal impacting the city budget, any alderperson was allowed to make that request.

The office was further required to produce activity reports quarterly, not just annually.

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Now former-Budget Chair Pat Dowell (3rd) then chose Kenneth Williams Sr., a former analyst for the office, as director and gave him the “autonomy” the ordinance demanded.

Two years ago, a bizarre standoff developed in the office.

Budget Committee Chair Jason Ervin (28th) was empowered to dump Williams after Williams refused to leave to make way for a director of Ervin’s own choosing.

The standoff began when Williams said he was summoned to Ervin’s office and told the newly appointed Budget chair was “going in a different direction, and I’m putting you on administrative leave” with pay.

“He took all my credentials and access away. I would love to come to work. I wasn’t allowed to come to work,” Williams said then.

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Williams collected a paycheck for doing nothing while serving out the final days remainder of a four-year term.

Ervin’s resolution stated the director “may be removed at any time with or without cause by a two-thirds” vote or 34 alderpersons. He chose Janice Oda-Gray, who remains chief administrator.

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Finance

Reilly Barnes Returns to Little League® as Purchasing/Finance Assistant

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Reilly Barnes Returns to Little League® as Purchasing/Finance Assistant

Little League® International has announced that Reilly Barnes accepted a new role as Purchasing/Finance Assistant, effective April 6, 2026. Barnes transitions from a temporary Purchasing Assistant to this full-time position to assist in the year-round demands of purchasing for the organization, as well as the region and Little League Baseball and Softball World Series tournaments. 

“We are thrilled to welcome back Reilly to our team as a full-time Purchasing/Finance Assistant. Reilly’s prior experience, time management, and attention to detail make him an invaluable asset to the purchasing team,” said Nancy Grove, Little League Materials Management Director. “We look forward to the positive contributions he will have on our organization.” 

In this role, Barnes will be responsible for processing purchase requisitions, coordinating souvenir products, and tracking order fulfillment. He will also assist with evaluating suppliers, reviewing product quality, and negotiating contracts for effective operations.  

After most recently working as a Logistician Analyst at Precision Air in Charleston, South Carolina, Barnes, a Williamsport native, returns after honing his skills in the fast-paced environment. Prior to his time at Precision Air, Barnes served as a Procurement Specialist at The Medical University of South Carolina, where his expertise and knowledge were instrumental in supporting both education and healthcare needs.  

“I am thrilled to return to Little League in this full-time role,” said Barnes. “Coming back to my hometown and having the opportunity to work for an organization that has played such a special part of my upbringing means a lot. I can’t wait begin this new opportunity.” 

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Barnes graduated from the University of Pittsburgh in 2022 with a B.A. in Supply Chain Management, Finance, and Business Analytics.  

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Finance

Why this sleepy Swiss town has become a ‘bolt-hole’ for the Gulf elite

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Why this sleepy Swiss town has become a ‘bolt-hole’ for the Gulf elite

As conflict continues to destabilise the Middle East, the Gulf States elite are seeking solace in European alternatives that offer comparable financial benefits with a far lower risk of war on the doorstep. One such destination is the small Swiss town of Zug, which is becoming a “bolt-hole” for Gulf-based wealth, said the Financial Times.

‘Swiss Monaco’

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