3 Magnificent S&P 500 Dividend Stocks Down As Much As 36% to Buy and Hold Forever

There’s something oddly satisfying about snagging a great stock while it’s in the discount bin. I’ve always found this particularly true with dividend stocks - buying when they’re down means locking in higher yields for potentially decades to come. Let me share three S&P 500 dividend payers that have taken a serious beating but might deserve a permanent place in your portfolio.

1. Verizon Communications

Let’s be honest - Verizon isn’t going to make you rich through explosive growth. The wireless market is saturated to death with 98% of American adults already owning mobile phones, while landlines continue their slow march toward extinction.

But if immediate income is your game, Verizon’s 6.2% forward yield looks mighty tempting after the stock’s 30% decline from its 2019 peak. They’ve raised dividends for 18 straight years, and the $2.71 in annual payments is comfortably covered by expected earnings of $4.69 per share.

I’ll admit the $124 billion debt load makes me nervous - that’s nearly as much as their $136 billion annual revenue. But their consistent cash generation suggests they can handle these obligations, and let’s face it - Americans would sooner give up food than their smartphones at this point.

2. Accenture

Accenture might be the $158 billion giant you’ve never heard of. Despite generating $65 billion in revenue last year and $7.7 billion in profits, it operates largely behind the scenes.

What makes Accenture interesting is its hybrid business model. Half comes from one-off consulting gigs, but the other half is recurring “managed services” revenue - essentially companies outsourcing their complex ongoing operations to Accenture. This creates the predictable cash flow that dividend investors crave.

So why has the stock plunged 36% since February? Market paranoia about tariffs and rising rates potentially squeezing corporate budgets for Accenture’s services. Yet revenue still grew 8% last quarter, and analysts expect similar growth next year.

The 2.3% yield might seem modest, but the dividend has grown a staggering 85% in just five years. I’d rather have a smaller yield that doubles every few years than a stagnant higher one.

3. Lockheed-Martin

Defense contractor Lockheed has had a rough year, with shares down 26% since October. Much of this stems from reduced F-35 fighter jet orders from both the Pentagon and international allies due to performance issues and eye-watering costs.

But I think the market is overreacting. The F-35 represents less than a third of Lockheed’s revenue, and much of that comes from maintenance contracts that continue regardless of new sales. Meanwhile, their other weapons systems are seeing booming demand - the Army recently allocated $5 billion for Lockheed’s precision strike missiles, and they received an additional $2 billion for high-altitude defense interceptors.

The company still expects $74 billion in revenue this year, up from last year’s $71 billion, with similar growth projected next year. Their 2.9% dividend yield has increased for 22 consecutive years.

The market will eventually recognize that a few canceled fighter jets don’t outweigh Lockheed’s overall strong position in an increasingly unstable world. I wouldn’t wait too long on this one.

Disclaimer: For information purposes only. Past performance is not indicative of future results.