Investors Eye Discounted S&P 500 Dividend Stocks Today

Investors are looking at new investment opportunities. This report reveals three attractive S&P 500 dividend stocks to consider for long-term gains while prices are low.

Date: 09-03-2025

AI Rating: 5

Current Analysis of Key Stocks
According to the report, three S&P 500 companies present intriguing buying opportunities based on their current dividend yields and market conditions: PepsiCo, Merck, and AES.

1. PepsiCo (NASDAQ: PEP)
The report indicates that PepsiCo offers a forward-looking dividend yield of 3.5%, which is higher than Coca-Cola's yield of 2.9%. This suggests that PepsiCo might be more favorable for income-focused investors. The mention of a 20% decrease in its shares from their 2023 high can attract long-term investors looking for lower entry points.

2. Merck (NYSE: MRK)
Merck's stock has seen a nearly 30% decline due to various challenges, including slowing sales and disappointing guidance, along with concerns about patent expirations for its drug Keytruda. However, the company maintains a forward-looking dividend yield of about 3.5%, which could entice investors for potential upside amid current setbacks.
Furthermore, there are promising prospects in the pipeline, indicating that while the current situation is tough, Merck has opportunities for rebound and long-term growth.

3. AES (NYSE: AES)
AES is experiencing a significant downturn, down 63% from its late-2022 peak. However, the company is undergoing a transition towards renewable energy, which is future-oriented. AES expects a sales growth range of 5% to 7% through 2027, with earnings growth projected at 7% to 9%. The forward-looking yield is attractive at 6.4%, especially during its transformation phase.

The information reflects both the challenges and opportunities for these companies, which could significantly impact stock prices positively if they manage to navigate the current economic climate successfully.

Stocks: PEP MRK AES