2 Magnificent S&P 500 Dividend Stocks Down as Much as 55% to Buy and Hold Forever

By Reuben Gregg Brewer – Mar 31, 2026 at 10:15PM ESTKey PointsUnited Postal Service is generating higher profits on each package it delivers.Hormel's organic growth has been trending higher for more than a year.Investors have punished the stocks of United Parcel Service (UPS +3.41%) and Hormel Foods (HRL 1.56%). Both are S&P 500 index (^GSPC +2.91%) stocks, with each down by more than 55% since early 2022. That's a potential opportunity for investors who don't mind a turnaround. Here's a quick look at the positive story behind UPS and Hormel.

United Parcel Service says 2026 is the inflection point UPS did a lot of heavy lifting in 2025. It closed 93 buildings and deployed automation at 57 locations. The industrial giant overhauled its distribution network, allowing it to save $3.5 billion. And, perhaps most important, the package delivery company reduced its exposure to Amazon (AMZN +3.51%), a high-volume, but low margin customer. Image source: Getty Images. The bad news is that revenues and earnings fell year over year in 2025. The good news is that the company's revenue per piece in the U.S. market grew 7.1%. That's an indication that the company's turnaround effort is achieving its intended result. In fact, management is very clear that 2026 is likely to be the inflection point, with the second half of the year turning out better than the first. UPS offers a lofty 6.9% yield that the company appears ready to support. Offering a vital service, UPS is the kind of stock that you can buy and hold for decades. ExpandNYSE: UPSUnited Parcel ServiceToday's Change(3.41%) $3.24Current Price$98.19Key Data PointsMarket Cap$81BDay's Range$95.78 - $98.3752wk Range$82.00 - $122.41Volume261KAvg Vol6.6MGross Margin18.53%Dividend Yield6.91% Hormel expects the positives to continue into 2026 The big story for Hormel in 2025 was the strength in organic sales. The most recent fiscal quarter marked the fifth consecutive quarter in which this vital metric rose. In addition to this success, the company has been reworking its business, most notably through the sale of its commodity-based turkey business. The turnaround hasn't been easy and has involved bringing in a new CEO, but it is starting to take shape. Notably, Hormel expects adjusted earnings to rise between 4% and 10% in fiscal 2026. The packaged food company's effort to focus on value-added products is almost complete. And its protein-leaning portfolio looks well-positioned to benefit from changes in consumption driven by GLP-1 drugs. ExpandNYSE: HRLHormel FoodsToday's Change(-1.56%) $-0.36Current Price$22.66Key Data PointsMarket Cap$13BDay's Range$22.38 - $23.1652wk Range$21.03 - $32.07Volume79KAvg Vol4.7MGross Margin15.33%Dividend Yield5.05% With an over 50-year history of annual dividend increases, this Dividend King is a strong option for income investors. The yield is a historically high 5%, and well above the 1.1% on offer from the S&P 500 index. Buy while others are selling Given the deep price declines in UPS and Hormel, investors are worried about these businesses. However, if you dig in and see the positives that are taking shape, you'll probably start to like these out-of-favor S&P 500 stocks. Now, before their business upturns start to gain wider attention, could be the time to buy.Read NextMar 30, 2026 •By Keith Speights3 Monster Dividend Stocks to Hold for the Next 10 YearsMar 23, 2026 •By David Jagielski, CPAWill UPS' Move to Reduce Amazon Deliveries Backfire?Mar 22, 2026 •By Reuben Gregg Brewer6 Surprising Stocks Affected by High Oil PricesMar 20, 2026 •By Reuben Gregg BrewerCould Amazon and USPS' Failing Contract Negotiations Help UPS and FedEx?Mar 17, 2026 •By Justin Pope1 Magnificent Industrial Stock Down 58% to Buy and Hold ForeverMar 17, 2026 •By Kristi WaterworthBest Commercial Real Estate Stocks for 2026About the AuthorReuben Gregg Brewer is a contributing Motley Fool stock market analyst covering energy, utilities, REITs, and consumer staples. He is the former director of research at Value Line Publishing, where he rose from mutual fund analyst to equity analyst before leading all research operations. Reuben holds a bachelor’s degree in psychology from SUNY Purchase, a master’s in social work from Columbia University, and an MBA from Regis University. He has been featured as a financial expert on CNBC and in the Financial Times, Barron’s, and InvestmentNews.TMFReubenGBrewerStocks MentionedUnited Parcel ServiceNYSE: UPS$98.38(+3.61%)+$3.43S&P 500 IndexSNPINDEX: ^GSPC$6,528.52(+2.91%)+$184.80Hormel FoodsNYSE: HRL$22.65(-1.61%)-$0.37*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.