Investors advised to focus on dividend stocks amid economic uncertainty; three undervalued S&P 500 highlighted.

From Nasdaq: 2025-05-14 18:05:00

In light of recent talks between China and the United States regarding tariffs, investors are advised to exercise caution in their investment strategies. Consider owning more dividend-paying stocks and fewer growth stocks to navigate the uncertain economic landscape. Three undervalued S&P 500 dividend stocks are highlighted for potential investment opportunities.

Target’s stock has lagged behind Walmart’s performance post-pandemic, with shares at a five-year low. However, signs of recovery are emerging, with revenue and earnings exceeding expectations. Analysts anticipate modest growth in the coming years, positioning Target for a rebound in demand for its premium offerings.

Pfizer’s stock has declined significantly due to the waning sales of its COVID-19 vaccine and antiviral treatment. The company is banking on its robust drug pipeline to drive future growth, with promising candidates in late-stage trials. Cost-cutting measures and financial discipline are expected to bolster Pfizer’s recovery in the near future.

PepsiCo’s stock has faced challenges due to higher costs impacting its snack and beverage businesses. However, analysts foresee a rebound in sales and earnings starting next year, driven by its strong brand portfolio. With a history of consistent dividend increases, PepsiCo presents an attractive investment opportunity with a forward dividend yield of 4.3%.



Read more at Nasdaq: 3 Magnificent S&P 500 Dividend Stocks Down 62%, 63%, and 64% to Buy and Hold Forever