Two S&P 500 dividend stocks have underperformed but have strong businesses and potential. WM, the largest waste and recycling company in North America, boasts a powerful moat. Cintas, the top uniform rental provider, excels in a fragmented market. Despite recent drops, both stocks offer growth opportunities.

WM has a vast network and strong financials, delivering impressive returns and raising dividends consistently. Cintas dominates its industry through acquisitions and customer value, tripling S&P 500 returns. Both stocks, though pricey, have a history of outperformance and steady growth, making them attractive long-term investments.

Consider investing in WM and Cintas, as they present buy-the-dip opportunities with strong growth potential. WM benefits from its industry-leading network, while Cintas excels in uniform rental and facility services. Despite recent drops, both companies have a solid track record of success and could offer substantial returns in 2026.

Read more at Yahoo Finance: 2 Magnificent S&P 500 Dividend Stocks Down 10% and 14% to Buy Right Now for 2026