3 Magnificent Dividend Stocks Down 20% to Buy and Hold Forever

The Motley Fool

by newsfeedback@fool.com (Thomas Niel)

February 24, 2026

AI-Generated Deep Dive Summary

The stock market remains near record highs, but certain dividend stocks have experienced significant declines of 20% or more from their 52-week highs. This drop presents a unique opportunity for investors to engage in bottom-fishing, as these stocks now offer higher forward yields and the potential for steady gains despite recent volatility. The article highlights three such stocks: Best Buy (NYSE: BBY), Kimberly-Clark (NASDAQ: KMB), and Kraft Heinz (NASDAQ: KHC). While some of these stocks have seen justified pullbacks due to specific factors, the market may have overreacted in certain cases, creating undervalued opportunities for long-term investors. Best Buy has faced challenges related to broader economic concerns and shifts in consumer behavior. Despite these headwinds, the company remains a strong dividend payer with solid fundamentals. Kimberly-Clark, known for its essential consumer products, has been impacted by supply chain issues and macroeconomic factors. However, its consistent dividend history and resilient business model make it an attractive long-term investment. Kraft Heinz, meanwhile, has grappled with challenges such as recalls and restructuring efforts. Despite these setbacks, the company continues to demonstrate financial strength and a commitment to shareholder returns. For investors focused on dividends and stability, these stocks represent compelling opportunities. Their higher forward yields after recent declines make them attractive for income generation, while their underlying strengths suggest potential for recovery and long-term growth. As the market stabilizes, these undervalued dividend stocks could offer significant upside potential. For readers interested in finance and investing, this article underscores the importance of identifying undervalued opportunities during periods of market volatility, particularly for those seeking steady returns through dividend investments. This approach not only provides a hedge against market fluctuations but also aligns with strategies that prioritize long-term growth

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Originally published on The Motley Fool on 2/24/2026