3 Magnificent S&P 500 Dividend Stocks Down as Much as 27% to Buy and Hold Forever

By Justin Pope – Mar 12, 2026 at 5:15AM ESTKey PointsCoca-Cola remains a solid buy despite its recent run.Domino's Pizza has many years of dividend growth ahead.Home Depot will continue to pay dividends as the retail center of a multitrillion-dollar housing market.Most people don't have the time to babysit their stock portfolio, so simple, dominant businesses that you can realistically buy and hold without having to do more than some occasional checking in on are often ideal. The consumer space is an excellent place to find these types of companies. Consumer spending is the engine that drives the economy, and people tend to remain loyal to the brands they know most. Here are three magnificent S&P 500 dividend stocks that have tumbled as much as 27% from their high but remain compelling buy-and-hold candidates. Tucking these blue chip dividend stocks into a long-term portfolio should yield steady wealth and dividend income for the foreseeable future. Image source: Getty Images. 1. Coca-Cola Market uncertainty has sent investors piling into The Coca-Cola Company (KO 0.40%). As a result, the global beverage giant has recently made new highs, though the stock has pulled back by about 5%. The legendary dividend stock offers investors safety, as the business has demonstrated remarkable consistency for more than a century, evidenced by its 64 consecutive annual dividend hikes. (Any company that has increased its annual dividend for at least 50 consecutive years is considered a Dividend King.) ExpandNYSE: KOCoca-ColaToday's Change(-0.40%) $-0.32Current Price$77.56Key Data PointsMarket Cap$334BDay's Range$76.60 - $77.7252wk Range$65.35 - $82.00Volume451KAvg Vol18MGross Margin61.75%Dividend Yield2.63% Coca-Cola's renowned brands and vast distribution network have a global footprint. These are tremendous competitive advantages in a highly fragmented beverage industry. The company continues to grow at a mid-single-digit pace, propelled by a mix of factors, including global population growth, price increases, and newly created or acquired products. I wouldn't call Coca-Cola's stock cheap at more than 23 times forward-looking earnings estimates, but it's not so expensive that investors should avoid it altogether. Holding shares and reinvesting its dividend over the course of 20 to 30 years is how the stock will do its best wealth-building work for you. 2. Domino's Pizza Just as people always get thirsty, they also need to eat. Domino's Pizza (DPZ 2.02%) has become a juggernaut. The world's largest pizzeria restaurant chain has more than 22,000 locations. Its franchise model produces stable revenue streams from fees and royalties on store sales. Pizza has a broad cultural appeal and is one of the best ways to feed a group at a low price. ExpandNASDAQ: DPZDomino's PizzaToday's Change(-2.02%) $-8.11Current Price$392.42Key Data PointsMarket Cap$13BDay's Range$391.37 - $399.7652wk Range$370.70 - $499.08Volume82KAvg Vol817KGross Margin39.95%Dividend Yield1.77% You could call Domino's Pizza a rising star in the dividend stock community; the company has raised its dividend for 14 consecutive years, and there's plenty of room to extend that streak. The dividend costs just 35% of this year's estimated earnings, and Domino's has big plans to continue opening more stores over the coming years. Many consumers are struggling financially, so sentiment toward many restaurant stocks has cooled. Domino's Pizza has fallen more than 27% from its all-time high. The stock now trades at less than 21 times forward earnings, an attractive long-term buying opportunity, with analysts expecting 11% to 12% annualized earnings growth over the next three to five years. 3.

Home Depot The U.S. housing market has been extremely lucrative for The Home Depot (HD 1.69%), the world's largest home improvement retailer. For many consumers, homes represent a significant chunk of their financial assets, and the emotional connection to your home is a strong motivator to stay on top of repairs, maintenance, and upgrades. ExpandNYSE: HDHome DepotToday's Change(-1.69%) $-5.99Current Price$348.79Key Data PointsMarket Cap$349BDay's Range$346.87 - $353.5552wk Range$326.31 - $426.75Volume133KAvg Vol4.2MGross Margin31.33%Dividend Yield2.62% Home Depot enjoys a widespread footprint in the United States and has adapted well to e-commerce. Much of what Home Depot sells is too large to ship online, and many consumers like to see appliances, paint colors, and other home goods in person before purchasing. Home Depot is also building a strong dividend track record with 17 consecutive annual increases and counting. The stock sits 17% off its high due to soft home improvement spending in recent quarters. Consumer finances will fluctuate over time, but housing is a staple of American culture. Home Depot will likely continue enjoying its firmly entrenched leadership in this space for years to come. That makes the stock a strong buy-and-hold candidate on notable dips, like what investors are seeing now.Read NextMar 12, 2026 •By Dave KovaleskiMy 2 Favorite Dividend Stocks to Buy Right NowMar 11, 2026 •By Prosper Junior BakinyWant Decades of Passive Income? 2 Stocks to Buy Now and Hold ForeverMar 11, 2026 •By Reuben Gregg Brewer2 Unstoppable Dividend King Stocks to Buy Right Now for Less Than $1,000Mar 10, 2026 •By Daniel SparksCoca-Cola Stock Is Crushing the Market This Year.

Is It Time to Buy?Mar 9, 2026 •By Leo SunBetter Stock to Buy Right Now: Coca-Cola (KO) vs. Altria (MO)Mar 8, 2026 •By Neil Patel2 Best Dividend Stocks to Buy Now and Hold ForeverAbout the AuthorJustin Pope is a contributing Motley Fool stock market analyst covering information technology, consumer discretionary, consumer staples, and industrials. Prior to The Motley Fool, Justin was a business manager for an industrial company.TMFbeardedFiStocks MentionedCoca-ColaNYSE: KO$77.63(-0.32%)-$0.25Home DepotNYSE: HD$348.79(-1.69%)-$5.99Domino's PizzaNASDAQ: DPZ$393.29(-1.80%)-$7.23*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.