1 Magnificent S&P 500 Dividend Stock Down 10% to Buy and Hold Forever

In a scenario that was nearly unthinkable as recently as last year, the State Street Consumer Staples Select Sector SPDR ETF (NYSEMKT: XLP) is up some 13% year to date. In comparison, the equivalent technology exchange-traded fund (ETF) is saddled with about a 4.5% loss.

That's great for investors who bought the consumer staples ETF late last year or in early 2026, but its credentials as a value fund are debatable. Consider this: Costco Wholesale and Walmart, the ETF's two largest holdings, sport price-to-earnings ratios above Nvidia's. To be sure, that's an interesting, perhaps concerning factoid.

Mondelez is offering value and dependable dividend growth. Image source: Getty Images.

It doesn't mean the consumer packaged goods sector is lacking value. Investors just need to know where to look, and they don't have to look far: Mondelez International (NASDAQ: MDLZ) offers not only value but also reliable income. That combination could make this a stock worth snacking on.

Take a bite of this fundamental outlook

Depending on an investor's perspective, the Triscuit maker is either in dubious or illustrious company, as it's one of just 13 S&P 500 consumer staples stocks yielding more than 3% that are also in the red over the past 12 months. To be precise, Mondelez is off 10.6% over that span, and to be fair, that period includes a lengthy stretch in which U.S. stocks were led higher by growth equities while the defensive staples sector faltered.

Specific to Mondelez, which is considered a wide-moat name, the Oreo maker was hindered by market participants' affinity for more glamorous investment themes and lack of appreciation for this company's enviable brand portfolio. Those skeptics may have glossed over Mondelez's crucial investments in innovation, which are speeding up the timeline for bringing new and refreshed products to market.

There's a silver lining. Not only is the stock considered undervalued by some analysts, but the company is pacing toward 4% organic sales growth on operating margins of 18%, which tops the five-year average of 16.5%, according to Morningstar.

Of course, the dividend is a major draw for this stock. Investors considering a long-term relationship with Mondelez can take heart in knowing its past payout growth track record is impressive, and some analysts believe those increases will continue at a high-single-digit pace through 2034.

Mondelez is right for right now, too

The appropriate context for shares of the Ritz cracker maker is as a long-term investment, but at the same time, the stock is up more than 9% year to date, indicating it can deliver the goods over shorter holding periods.

Its 2026 showing may be a sign that Mondelez is worth owning amid geopolitical stress and tariff tumult. Cocoa prices, which are 70% below 2024 highs, also fortify the near-term case for this consumer staples stock.

Indeed, if investor anxiety runs high and market breadth widens this year, Mondelez could add to its year-to-date gain while setting up for a durable, long-term rally.

Todd Shriber has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale, Nvidia, and Walmart. The Motley Fool has a disclosure policy.