2 Magnificent S&P 500 Dividend Stocks Down 7% and 19% to Buy and Hold Forever

American stocks were volatile this year, but they had a strong run. the S & P 500 The index gained 17.3 % during the past year until September 16.

However, just because the index has achieved well does not mean that you cannot find exceptions. coca cola (Nyse: ko) and Eli Lily (NYSE: LLY) More than 8 % and 14 % decreased, respectively.

This may make some investors be ashamed of shares. After all, the shares have reduced performance on the market for various reasons.

However, long -term investors interested in profit distributions should look at this as an excellent purchase opportunity.

Most people around the world heard about Coca -Cola. The company, which was launched in 1886, sells its drinks, including the brand of the same name, in more than 200 countries.

A mature company, the days of its revenue appear to be fossilized behind it. However, Coca-Cola has increased its upper line. The revenues of the second quarter, removal of foreign currency fluctuations and promotions, and acquisition/disposal, have grown by 5 %. This helped pay the 15 % modified operating income.

The revenue was fully due to the high prices and the variable product mixture, which contributed to 6 degrees Celsius. However, the decrease in the size of the latitude of 1 percentage. This may lead to the position of some investors, but consumers are likely to feel weary of constantly high inflation. At some point, prices will stop and sizes will increase. More importantly, the Coca -Cola market share in the non -alcoholic drink sector continued to expand.

Coca-Cola shareholders are based on stock profits, which are still an important source of the total shares. In fact, they expected a regular increase, and Coca-Cola raised the payment by more than 5 % in February. This company ran to 63 years in a row, making it the property of profits.

The stocks have a 3.1 % profit distribution return, more than twice the S&P 500 1.2 %. The payment rate of 71 % of Coca-Cola should provide the comfort that the company can easily bear.

Elie Lily, who was also present since the late nineteenth century, was very successful in developing and selling medications used to treat diabetes, cancer and immunity (rheumatoid arthritis), among other diseases.

It has three drugs, mounjaro, Zepbound, and Verzenio, which represents 65 % of the second -quarter revenue of $ 15.6 billion. These medications treat type 2 diabetes, obesity and breast cancer, respectively. Products have achieved growth above 12 % to 172 %, and continue to increase revenue growth.

The second -quarter revenue grew by 38 %, and the profits of the share increased by 61 % to $ 6.31. The administration raised its revenue instructions for 2025 and is now expecting better growth than 35 % of revenues, based on the mid -term point from 60 billion dollars to 62 billion dollars.

Elie Lily continues to invest money to develop new drugs. It increased spending on research and development in the second quarter by 23 % compared to the past year, to $ 3.3 billion. It is the largest element of expenses, which represents more than 21 % of revenues.

It is difficult to argue with these results, but the arrow may have already been in front of itself. A year ago, the shares were traded by the price rate (P/E) for more than 100. They now have 50 P/E more reasonable.

The stock return by 0.8 % less than the S&P 500 index, but the ELI Lilly Board of Directors has raised profits annually since 2015. With a 37 % payment rate, profits are easily covered by profits.

The joint appreciation capabilities and profit distribution payments give ELI Lilly shares of attractive overall return.

Before buying shares at Coca-Cola, think about this:

the Motley Adviser is a lie The analyst’s team has just identified what they think 10 best stocks For investors to buy now … Coca -Cola was not one of them. The ten shares that made the pieces can produce monster revenues in the coming years.

Look at when Netflix This list was submitted on December 17, 2004 … if you invest $ 1,000 at the time of our recommendation, You will have 661,694 dollars!* Or when Nafidia This list was presented on April 15, 2005 … if you invest $ 1,000 at the time of our recommendation, You will have 1082,963 dollars!

Now, it is worth noting Stock consultant The average total return is 1067%-Crushing supremis to the market compared to 189 % on the S&P 500 index. Stock consultant.

See the ten stocks »

*The stock consultant dates back from September 15, 2025

Lawrence Rotd does not have a position in any of the mentioned shares. There is no position in Motley Fool in any of the mentioned stocks. Motley Fool has a disclosure policy.

2 Gorge Distribution Discounts S&P 500 by 7 % and 19 % for purchase and nodes forever was originally published by motley fool