3 Magnificent S&P 500 Dividend Stocks Down 25%+ to Buy and Hold Forever
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Despite some volatility earlier this year, the S&P 500 has rallied 10% over the last 12 months. However, while most stocks are up in the past year, several have missed the...
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real estate
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June 28, 2025
06:15 PM
The Motley Fool
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Despite some volatility earlier this year, the S&P 500 has rallied 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 (ARE -1. 25%), Oneok (OKE -0. 07%), and PepsiCo (PEP 2. 26%) 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
Image source: Getty Images
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 jects
Alexandria also has a fortress balance sheet, giving it significant financial flexibility
Alexandria is heavily in and re more lab space for the life science sector
These jects will supply it with incremental s 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 mid company's dividend yield to around 5%
However, the pipeline company has demonstrated the durability of its integrated mid 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 mid model has enabled it to der 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 jects underway, including an export terminal and related pipeline that should enter commercial service in early 2028
A satisfying income PepsiCo's stock slump has pushed the food and beverage giant's dividend yield up toward 4
That's a tasty yield for a company with PepsiCo's magnificent dividend-growth track record
It recently ext 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 heavily to organically grow its revenue and bolster its margins through duct innovation and ductivity enhancements
PepsiCo anticipates these investments will drive 4% to 6% annual organic revenue growth and high-single-digit earnings-per- (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 s 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
Matt DiLallo has positions in PepsiCo
The Motley Fool has positions in and recommends Alexandria Real Estate Equities
The Motley Fool recommends Oneok
The Motley Fool has a disclosure policy.
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