Top S&P 500 Dividend Stocks Down Over 25% Present Buying Opportunities

In a market where the S&P 500 has experienced a rally of approximately 10% over the last year, several stocks have notably lagged, presenting unique buying opportunities for dividend investors. Alexandria Real Estate Equities (NYSE: ARE), Oneok (NYSE: OKE), and PepsiCo (NASDAQ: PEP) are identified as three top dividend stocks that are currently down over 25% from their 52-week highs.

Alexandria Real Estate Equities specializes in life science real estate and boasts a portfolio leased to a leading group of tenants, which allows it to generate strong cash flows. Even with its stock price decline, it maintains a dividend payout ratio of 57%, indicating a conservative approach to distributing cash while retaining sufficient funds for development projects. The company also possesses a robust balance sheet, enhancing its financial flexibility to support growth.

Oneok, facing challenges partly from declining oil prices, has seen its stock tumble, resulting in an appealing dividend yield of around 5%. The company boasts over 25 years of dividend consistency and plans to increase its dividends by 3% to 4% annually moving forward, fueled by ongoing acquisitions aimed at enhancing its financial standing until 2027.

PepsiCo's stock has also suffered, but that has led to an increased dividend yield of approximately 4.5%. The company recently achieved a notable milestone by extending its dividend growth streak to 53 years, earning its place among the elite "Dividend Kings," characterized by consistent dividend increases over decades. The significant selloff of these stocks provides an opportunity for long-term investors looking for impressive dividend growth potential.