In the ever-evolving landscape of the stock market, savvy investors often seek out opportunities that the broader market may have overlooked. This article delves into three such S&P 500 stocks that possess the makings of long-term, dividend-paying investments, offering a chance for those willing to look beyond the surface.

Uncover the Upside: Uncovering Undervalued Gems in the S&P 500

Pfizer: Weathering the Storm, Poised for a Comeback

Pfizer (PFE) has faced its fair share of challenges in recent years, with the loss of patent protection on its blockbuster drug Lipitor and the increasingly competitive pharmaceutical landscape. However, the company's resilience and adaptability have been on full display, particularly during the COVID-19 pandemic when its Paxlovid treatment became a crucial weapon in the fight against the virus. While the stock has retreated from its 2021 highs, this presents an opportunity for savvy investors to capitalize on Pfizer's long-term potential.Activist investor Starboard Value has recently shone a spotlight on Pfizer's shortcomings, calling for a more focused approach to drug development and acquisitions. This external scrutiny could be the catalyst for much-needed changes within the organization, potentially unlocking hidden value for shareholders. Importantly, Pfizer's dividend remains a reliable source of income, having been raised for 15 consecutive years, providing a 5.8% forward yield for new investors.

Realty Income: Steady Dividends, Resilient Retail

Realty Income (O) may not be a household name, but this $55 billion S&P 500 constituent is a force to be reckoned with in the real estate investment trust (REIT) space. As a specialized REIT focused on retail properties, Realty Income has built a portfolio of high-quality tenants, including the likes of Walmart, FedEx, and Dollar General, which have demonstrated resilience even in the face of the e-commerce revolution.The company's impressive track record speaks for itself, with a monthly dividend that has been paid for the past 54 years and increased every quarter for the past 27 years. Even during the COVID-19 pandemic, Realty Income's occupancy rate remained strong at 97.9%, showcasing the stability and reliability of its business model. With a forward dividend yield of just under 5%, Realty Income offers a compelling combination of steady income and the potential for long-term capital appreciation.

Franklin Resources: Navigating Market Cycles, Delivering Consistent Dividends

Franklin Resources (BEN), the company behind the renowned Franklin Templeton mutual funds, has weathered its fair share of ups and downs over the years. After struggling to retain investor assets during the market's prolonged bull run in the mid-2010s, the company has since diversified its offerings and made strategic acquisitions, such as the purchase of options-trading technology company volScout.While the recent market downturn has made it challenging to gauge the full extent of Franklin Resources' business potential, the company's dividend history remains a testament to its resilience. With 44 consecutive years of dividend growth, Franklin Resources has demonstrated its ability to generate consistent cash flow, even in the face of market volatility. Currently yielding a healthy 6%, the stock's attractive valuation and reliable dividend stream make it a compelling option for income-oriented investors seeking exposure to the asset management industry.These three S&P 500 stocks, each with its unique strengths and challenges, offer investors the opportunity to uncover hidden value and potentially reap the rewards of long-term, dividend-paying investments. By taking a closer look at the bigger picture, savvy investors can position themselves to capitalize on the market's overlooked potential.