2 Magnificent S&P 500 Dividend Stocks Down 2% and 16% to Buy and Hold Forever

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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)}))}()}};]]>Lawrence Rothman, CFA, The Motley FoolWed, Jul 23, 2025, 2:00 AM 4 min readHome Depot and PepsiCo have seen results affected by larger economic forces.Home Depot will undoubtedly see sales growth accelerate when people take on major renovations.PepsiCo has a stable of well-known brands.10 stocks we like better than Home Depot ›Over the last year through July 18, the S&P 500 index has gained 13.6%. However, while certain stocks have done well, others have lagged.Home Depot (NYSE: HD) and PepsiCo (NASDAQ: PEP), two well-known companies, have been laggards. They have lost 1.8% and 15.9%, respectively, during this time.The market seems to have become concerned about short-term issues while ignoring the business' long-term strengths. That provides an opportunity for investors, who should get rewarded for their patience. In the meantime, you can collect dividends while waiting for their results and stock prices to recover.Image source: Getty Images.Many homeowners and professional contractors shop at Home Depot. The largest home-improvement retailer offers convenience and competitive prices.Its results can be sensitive to the economy, and more specifically, the housing cycle. Macroeconomic factors, such as interest rates, housing sales, and employment affect Home Depot's sales.Right now, people have been holding off on major home projects as high prices for things like food and housing eat away at discretionary income. Additionally, elevated interest rates have made borrowing, and hence large renovations, more costly, causing people to put them on hold.That's certainly hurt Home Depot's top line. Fiscal first-quarter same-store sales (comps) fell 0.3%, although foreign-currency translations subtracted 0.7 percentage points. The period ended on May 4.However, at some point, homeowners will proceed with renovations. It's just a matter of time before people remodel the kitchen or bathroom, for instance. When they do, it seems likely they'll return to Home Depot.In the meantime, shareholders can enjoy the 2.6% dividend yield, more than double the S&P 500's 1.2%.The board of directors also has a history of increasing payments. It has boosted dividends every year since 2010. Even during the Great Recession, Home Depot kept payments constant from 2007 through 2009.Aside from prioritizing dividends, the company has the wherewithal to keep making payments. Management expects this year's diluted earnings per share to fall about 3% from $14.91. That works out to about $14.26 a share, which would easily cover the $9.20 annual dividend.PepsiCo has a stable of beverage and convenience food brands. 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