2 Magnificent S&P 500 Dividend Stocks Down as Much as 25% to Buy and Hold Forever

The State Street Consumer Discretionary Select Sector SPDR ETF, the bellwether exchange-traded money (ETF) dedicated to that sector, is disconnected 1.2% twelvemonth to date. That show is each the much gloomy erstwhile considering the S&P 500 is up 8.6% since the commencement of 2026.

As expected, immoderate consumer discretionary stocks are outperforming the radical arsenic a whole, portion others are outright duds. But 1 happening that's absorbing astir the user cyclical laggards radical is that it includes immoderate perchance charismatic dividend names.

In fact, determination are 20 user discretionary stocks spanning large-, mid-, and tiny caps that are down astatine slightest 20% twelvemonth to day and person dividend yields of astatine slightest 2%. Yes, immoderate members of that radical are falling knives and/or worth traps, but determination are besides large-cap names present with morganatic opportunities for semipermanent dividend investors.

Here's a brace that mightiness beryllium worthy of buying connected the dip.

Cold pizza, blistery dividend opportunity

Down 14.4% implicit the past period and residing 36.7% beneath its 52-week high, Domino's Pizza (NASDAQ: DPZ) has gone stale -- astatine least, successful the eyes of immoderate investors. Disappointing first-quarter results, delivered precocious past month, are surely portion of the problem. Revenue bushed Wall Street estimates, but net per stock (EPS) and same-store income missed sell-side forecasts, sending the banal tumbling.

The EPS and same-store income misses are indicative of macroeconomic factors, specified arsenic sticky ostentation and tepid user sentiment, weighing connected immoderate of the antecedently best fast-food stocks, including Domino's.

Compounding the pizza franchise's woes is that it was 1 of 16 stocks Berkshire Hathaway dumped successful the archetypal quarter. So what was erstwhile a "Warren Buffett" banal is nary longer.

For galore investors, the Buffett endorsement is meaningful, arsenic it should be, but Berkshire parting ways with Domino's isn't needfully a buss of death. By his ain admission, Buffett sold immoderate Berkshire holdings excessively aboriginal implicit the years, with Apple and General Motors, among others, being 2 premier examples.

Domino's absorption is signaling it sees worth successful the shares, arsenic it announced a caller $1 cardinal stock repurchase programme alongside its first-quarter net release. As for the dividend, the banal yields 2.3%, and the payout was boosted by 15% successful February, marking the 14th consecutive twelvemonth the pizza concatenation has accrued its dividend, indicating a committedness to payout growth.