Top S&P 500 Dividend Stocks with Significant Price Drops ranging from 26% to 60%, Suitable for Long-term Investors looking for Purchasing Opportunities
Article: Notable Dividend Stocks in the S&P 500 - Merck, Target, and PepsiCo
In the ever-changing landscape of the stock market, three companies continue to stand out as notable dividend-paying stocks within the S&P 500: Merck (MRK), Target (TGT), and PepsiCo (PEP). While this article primarily focuses on Merck, it is essential to acknowledge the potential of the other two companies as well.
Merck (MRK)
As of August 2025, Merck's stock price closed at approximately $87.37, showing a modest gain of 1.5% on August 22 [1]. Morningstar rates Merck with a 4-star rating and estimates a fair value of $111 per share, indicating potential undervaluation [4]. Merck offers an attractive dividend yield of around 3.7-4.0%, with an annual dividend of $3.24 per share and a payout ratio of roughly 50% [1][2]. Dividends are paid quarterly, with the next ex-dividend date on September 15, 2025 [1].
Merck's sales and earnings guidance for 2025 forecasts revenue between $64.3 billion and $65.3 billion, with non-GAAP EPS guidance of $8.87 to $8.97, reflecting stable to modest growth despite some foreign exchange headwinds and one-time charges [3]. The company boasts a wide economic moat and a sound balance sheet with low risk, supporting steady future dividends [4].
Target (TGT)
Target's current dividend yield, stock price, or growth forecast was not available in the latest search results. Historically, Target has been a prominent dividend-paying retailer with a reputation for consistent dividends and moderate growth driven by resilience in consumer spending and e-commerce efforts. For an updated view, financial and dividend performance data from market sources would be required.
PepsiCo (PEP)
PepsiCo's market and dividend specifics were not available in the search data. PepsiCo is typically categorized as a stable dividend growth stock in the consumer staples sector, often featuring a well-covered dividend yield (~2.5 to 3%) and steady earnings growth from its diverse beverage and snack portfolio. Up-to-date performance metrics and dividend guidance would be needed from current market financial sources.
In conclusion, Merck appears as a solid dividend-paying opportunity with modest growth and undervaluation potential as of mid-2025. Target and PepsiCo, while not covered in detail in this article, remain important players in the stock market, and further research is encouraged to make informed investment decisions.
References:
[1] Yahoo Finance (2025). Merck (MRK) Stock Quote. [Online]. Available: https://finance.yahoo.com/quote/MRK/
[2] Morningstar (2025). Merck Inc. Dividend Disclosure. [Online]. Available: https://www.morningstar.com/stocks/xnas/mrk/dividends
[3] Merck (2025). Merck Reports First-Quarter 2025 Results. [Online]. Available: https://www.merck.com/news/press-releases/merck-reports-first-quarter-2025-results/
[4] Morningstar (2025). Merck Inc. Overview. [Online]. Available: https://www.morningstar.com/us/stocks/xnas/mrk/overview
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