2 amazing S&P 500 dividend stocks dropped 14% and 20% to buy and support forever

These shares have declined due to wider economic problems.
Coca-Cola, the king of dividends, has an impressive experience.
Conoco-Phillips results should recover when energy prices are recovered.
10 shares we like more than Coca-Cola ›

S&P 500 Index, a popular benchmark used to estimate US high capital stocks, in recent years until October 10th. Increased by 12.7%.

While this measures a stock group, some individuals have done better than others in this capitalization weighted index. For example, technology investors were certainly satisfied S&P 500 Information Technology During that time, Index 22.9% profit.

However, this allows you to investigate stocks that have not been sufficiently shown by the common market. In fact, Coca-Cola (Nyse: what) and Conocophillips (NYSE: a policeman) has lost 3.6% and 20.7% respectively in recent years.

These two companies belong to your portfolio for those who are looking for shares for a very long time.

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Coca-Cola has existed since 1886. And currently sells their drinks in more than 200 countries. Its products are baking soda, water, juice and added value. In addition to its Coke brand, it also sells its goods to well -known brands such as Fanta and Sprite.

Coca-Cola produced a second-quarter-adjusted 5%income growth adapted to foreign currency translations and acquisitions and delay. When they are interrupted, investors can be compared to operational results. Higher income has helped increase the adjusted activity revenue by 15% higher.

Higher prices and the changing product combination accounted for 6 percentage points. I would like to see a larger volume that takes 1 percentage point from revenue growth.

However, the weaker volumes should be temporary. Consumers definitely feel tired of high overall inflation. When it returns to normal, I hope the volume will increase. Meanwhile, the Coca-Cola market share in the non-alcoholic beverage sector continues to expand-it is very positive during the development of difficult economic times.

Shares are trading a more attractive assessment based on the rear price and income (P/E) ratio.

Coca-Cola has shown how dividends remain the top priority. Shareholders regularly increased the annual increase, including more than 5% in February. This replaced the company’s stretch to 63 years, making it a king of dividends.

The shares have 3% dividend yield, more than twice the S&P 500%. Coca-Cola with a 71% payment ratio can easily afford payments.

Conocophillips (NYSE: a policeman) explores and produces oil and natural gas around the world. These include North America, Europe, Africa and Asia.

This means that it has cyclic results based on the price of natural resources. Raw oil oil prices based on West Texas Intermedia are less than $ 60 per barrel compared to nearly $ 80 in January.

Although production increased, the Conocophillips realized lower prices. Its adjusted profit per share decreased by 28% to $ 1.42.

Depending on its size and characteristics, income should retreat when prices recover. Meanwhile, despite the lower position, the Conocophillips create enough free cash flow (FCF) to cover the dividends. In the first half of the year, he created $ 2.9 billion FCF compared to $ 2.7 billion in dividend payments.

Shares P/E ratio has fallen from 13 to 12 in recent years. It seems to be probably due to short -term concern for energy prices.

As you wait for the price of goods, you can collect 3.6%of the stock higher than the market. Patient investors can rely on dividends while waiting for the shares to recover. You should have an attractive overall return over time.

Consider this: Coca-Cola before buying stocks:

Motley Fool Stock Advisor A team of analysts just found what they think is 10 best stocks To buy investors now … and Coca-Cola was not one of them. 10 stocks that reduced the incision can return the monster in the coming years.

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Lawrence Rothman has no position in any of the above shares. The Motley fool has no position in any of the above stocks. The Motley fool has a disclosure policy.

2 Stores of S&P 500 Dividend Stock Decreased 14% and 20% to buy and hold forever, initially announced by The Motley Fool

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