3 Magnificent S&P 500 Dividend Stocks Down 33% to 40% to Buy and Hold Forever -- Including United Parcel Service (UPS) and Target (TGT)

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RegExp("[?&]notifications=1(&|#|$)");"desktop"===y&&i&&b.test(window.location.search)&&(i.checked=!0)};be("ybar-mod-notification",(function(e){var t={isUH3:"crunch"===e.getConfig().ytheme,notifContainer:document.getElementById("notification-container"),notifBadge:document.getElementById("notif-badge"),notifMenu:document.getElementById("ybarNotificationMenu"),notifMenuOpener:document.querySelector("#ybarNotificationMenu + label"),notifDropdown:document.getElementById("notifDropdownContainer"),tooltipContainer:document.querySelector(".".concat(Vn)),notifLabel:document.querySelector(".".concat($n))};t.notifDropdown&&ro(e,t)}))}()}};]]>Selena Maranjian, The Motley FoolSat, September 27, 2025 at 4:15 PM GMT+2 5 min readThese three stocks have fallen sharply, pushing up their dividend yields.Each of them faces some challenges, but they may overcome them.If they do, this will turn out to have been a great time to buy.10 stocks we like better than United Parcel Service ›Dividends are a wonderful thing, because healthy and growing dividend-paying stocks will tend to keep paying their shareholders regularly, no matter what the overall economy is doing. Better still, they'll generally increase their payouts over time -- often annually.Extra-generous dividend yields can be had when a stock swoons. That's explained by simple math. A dividend yield is simply a company's total annual payout divided by its current share price. So an $80 stock with a quarterly dividend of $1 (that's $4 on an annual basis) would have a yield of 5% ($4 divided by $80 is 0.05, or 5%).In that example, if the stock price falls to, say, $60, you'd divide $4 by $60, getting 0.067, or 6.7%. See? Lower stock prices boost dividend yields, all else remaining the same.Image source: Getty Images.Here, then, are three S&P 500 dividend payers that have sunk 33% or more so far this year. Each has turned in magnificent performances in the past and each has a promising future, so see if any deserve a closer look.Let's start with United Parcel Service (NYSE: UPS), whose stock is down about 33% year to date -- and which recently yielded a whopping 7.8%. (So if you invest, say, $5,000 in UPS, you can expect about $390 in annual income.)Why are UPS shares down? Well, our economy is on uncertain ground these days, with many people worried about rising prices, the effect of tariffs, and perhaps even job security. So online shopping isn't happening as much as it might. Another issue is self-inflicted. UPS has shrunk its business with Amazon.com, which has gone on to become a major delivery service on its own.Only invest in UPS if you're bullish that it can do well over time. I think it can, as I don't see e-commerce as any kind of fleeting fad. Its stock certainly looks appealing at recent levels, with a recent forward-looking price-to-earnings (P/E) ratio of 11.3, well below its five-year average of 15.8.Target (NYSE: TGT) is a familiar retailer, with $107 billion in net sales in 2024 and more than 45 owned brands. It boasts 1,989 stores in the U.S. and employs more than 400,000 people. (Wow!) Target also gives 5% of its profits back to its communities, amounting to many millions each month.It, too, has suffered a setback, with its shares recently down about 35% year to date. This is partly due to a decision to abandon its diversity, equity, and inclusion (DEI) policy, and partly due to supply chain issues from a few years ago. To many investors, these are temporary and fixable challenges -- but investors need to decide for themselves about any company.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P Futures6,712.00 +15.50 (+0.23%)Dow Futures46,637.00 +81.00 (+0.17%)Nasdaq Futures24,799.00 +72.25 (+0.29%)Russell 2000 Futures2,456.80 +6.40 (+0.26%)VIX15.29 -1.45 (-8.66%)Gold3,813.10 +4.10 (+0.11%)PortfolioSign in to access your portfolioSign inTop gainersCRNX Crinetics Pharmaceuticals, Inc. 45.91 +10.02 (+27.92%)QMMM QMMM Holdings Limited 119.40 +19.40 (+19.40%)EA Electronic Arts Inc. 193.35 +25.03 (+14.87%)SRRK Scholar Rock Holding Corporation 38.75 +4.26 (+12.35%)PPTA Perpetua Resources Corp. 21.16 +2.16 (+11.37%)Top losersCNXC Concentrix Corporation 47.66 -7.33 (-13.33%)MP MP Materials Corp. 68.63 -8.50 (-11.02%)KC Kingsoft Cloud Holdings Limited 15.64 -1.83 (-10.48%)IREN IREN Limited 41.86 -4.43 (-9.57%)OKLO Oklo Inc. 110.53 -8.60 (-7.22%)Most activeINTC Intel Corporation 35.50 +1.51 (+4.44%)OPEN Opendoor Technologies Inc. 8.81 -0.28 (-3.08%)SNAP Snap Inc. 8.27 -0.06 (-0.72%)NVDA NVIDIA Corporation 178.19 +0.50 (+0.28%)F Ford Motor Company 12.01 +0.39 (+3.36%)Earnings eventsMy earnings eventsEarnings eventsTrending tickersNQ=F Nasdaq 100 Dec 25 24,799.00 +72.25 (+0.29%)ES=F E-Mini S&P 500 Dec 25 6,712.00 +15.50 (+0.23%)YM=F Mini Dow Jones Indus.-$5 Dec 25 46,637.00 +81.00 (+0.17%)OXY Occidental Petroleum Corporation 47.47 +0.48 (+1.02%)BETRW Better Home & Finance Holding Company 0.5800 +0.0430 (+8.01%)Top economic events