Top S&P 500 Stocks Offering Bargains and Dividends Now

Investors looking for reliable dividend stocks will find a few appealing options among S&P 500 constituents, as a recent report outlines. Stocks like Pfizer, Realty Income, and Franklin Resources provide attractive yields and solid investment potential despite facing challenges.

Date: 27-10-2024

AI Rating: 6

The report highlights three S&P 500 stocks currently regarded as solid long-term investments offering dividends: Pfizer, Realty Income, and Franklin Resources. Below is an analysis of the key indicators affecting these stocks.

Pfizer (NYSE: PFE)

Pfizer's stock has decreased by 53% from its peak in late 2021 following the pandemic-fueled bullish period. The company's challenges stem from competitive pressures and setbacks in drug development, as pointed out by the activist investor Starboard Value. Notably, Starboard criticizes Pfizer for its lack of returns from the significant acquisition of Seagen and the dim prospects of drugs touted as blockbusters in 2019. However, the involvement of Starboard is seen as a potential catalyst for necessary changes. Importantly, Pfizer continues to maintain a strong dividend history, having paid quarterly dividends for years and raised its annual payment for 15 consecutive years. This positive aspect remains unaffected by ongoing criticisms, with a forward-looking dividend yield of 5.8%.

Realty Income (NYSE: O)

Realty Income, despite its quiet reputation, is noted for its structural transparency as a REIT, primarily investing in retail space. The occupancy rate, even during the COVID-19 pandemic, held at an impressive 97.9%, indicating resilience amid challenges in the brick-and-mortar retail sector. Realty Income's reliability is underscored by its monthly dividend payments over the past 54 years and consistent quarterly hikes for 27 years, contributing to a sustained forward-looking yield of just under 5%.

Franklin Resources (NYSE: BEN)

Franklin Resources is presented as an investment opportunity with a staggering 6% forward-looking dividend yield, driven by a history of annual dividend growth spanning 44 years. Despite its stock falling 43% from its post-pandemic peak, strategic acquisitions are believed to enhance its service offerings, making it an attractive play for investors. However, it’s essential to note that ongoing profit margin challenges may still create a cloud of uncertainty over its performance.

In summary, while each of these companies navigates various barriers, their strong dividend history considerably lessens investment risk and raises their appeal for income-focused investors.

Stocks: PFE O BEN