5 High-Yielding S&P 500 Stocks Trading at Double-Digit Discounts Are Incredible Strong Buys Now

5 High-Yielding S&P 500 Stocks Trading at Double-Digit Discounts Are Incredible Strong Buys Now Lee Jackson Wed, June 24, 2026 at 7:17 PM GMT+7 8 min read ^GSPC O VZ CLX DOC Quick Read Five S&P 500 dividend stocks trade at discounts of 20 to 45% to fair value while yielding up to 6%, and each carries a Buy rating from top Wall Street firms. Clorox (CLX) sits 45% below fair value with a 5% dividend, while Verizon (VZ) yields 6% trading at just 9x estimated 2026 earnings. Realty Income (O) has paid 667 consecutive monthly dividends since 1969 and trades at a 20% discount to fair value with a 5% yield. Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Verizon didn t make the cut. Grab the names FREE today. The Standard & Poor s 500 is a stock market index that tracks the performance of the 500 biggest companies in the United States. It is considered a top indicator of the U.S. stock market s health. It is a market-capitalization-weighted index of the 500 leading publicly traded companies in the U.S. Typically, larger companies significantly impact the index. As we have seen over the last year, technology stocks in the index have accounted for a large share of the index s gains. In fact, the information technology and communication services sectors were responsible for 63.1% of the S&P 500 s total return in 2025. Without those two sectors, the index would have returned just 6% rather than its actual 17.9%. Given those results, we decided to screen the S&P 500 for quality, well-known companies that pay substantial dividends but trade at a major discount to their intrinsic value. As we suspected, some top names are trading at significant discounts for various reasons, offering growth and income opportunities for investors and creating intriguing entry points. Five companies that investors are very familiar with look like outstanding total return candidates. All are rated Buy at top Wall Street firms that we cover here at 24/7 Wall St. Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Verizon didn t make the cut. Grab the names FREE today. Since 1926, dividends have accounted for approximately 32% of the S&P 500 s total return, while capital appreciation has accounted for 68%. Therefore, sustainable dividend income and the potential for capital appreciation are essential to total return expectations. A study by Hartford Funds, in collaboration with Ned Davis Research, found that dividend stocks delivered an annualized return of 9.18% over the past 50 years (1973 to 2023). Over the same timeline, this was more than double the annualized return for non-payers (3.95%). With products that never go out of style, and a massive 5.22% dividend, this is the perfect buy for conservative investors. Clorox (NYSE: CLX) is a multinational manufacturer and marketer of consumer and professional products. Despite some earnings turbulence in recent years, Clorox has maintained its dividend streak and is expected to cross the 50-year mark in 2026. Clorox trades at a 45% discount to Morningstar s $163 fair value estimate, with mid-single-digit annual dividend growth expected over the next decade. An ERP transition and weak near-term sales guidance have weighed on the stock. Still, the final phase of the U.S. ERP implementation was completed in January 2026, and a deal to acquire GOJO Industries (maker of Purell) opens up a new growth avenue. The company operates through four segments: The Health and Wellness segment consists of cleaning, disinfecting, and professional products marketed and sold under these brands: Its Household segment consists of bags and wraps, cat litter, and grilling products marketed and sold under the Glad, Fresh Step, Scoop Away, and Kingsford brands in the United States. The Lifestyle segment consists of food, water-filtration, and natural personal care products marketed and sold under the Hidden Valley, Brita, and Burt’s Bees brands. International products consist of those sold outside the United States. Its products in this segment include laundry additives, home care products, bags and wraps, cat litter, water filtration products, and others. Jefferies has a Buy rating with a $125 target price. This leading company invests in real estate in the healthcare industry, including senior housing, life sciences, and medical offices, and is trading at a 40% discount to fair value. Healthpeak Properties (NYSE: DOC) is a fully integrated real estate investment trust (REIT) with a solid 6.29% dividend. Morningstar s chief U.S. market strategist recommends it as a 5-star stock trading at a discount to fair value with a highly dependable yield. The company acquires, develops, owns, leases, and manages healthcare real estate across the U.S. It owns, operates, and develops real estate focused on healthcare discovery and delivery. Healthpeak Properties segments include: Continuing care retirement community (CCRC) The Outpatient medical s

5 High-Yielding S&P 500 Stocks Trading at Double-Digit Discounts Are Incredible Strong Buys Now

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