If you insist on buying your dividend stocks at a discount, you're largely out of luck right now. Although the S&P 500 has been uncomfortably volatile since July, it's still up more than 30% since November's low and still within sight of record highs. There just aren't a lot of bargains to choose from. However, there are a few worthy prospects if you're willing to do enough digging. Here's a rundown of three beaten-down S&P 500 dividend stocks you may want to consider scooping up before a bunch of other investors decide to do the same.

United Parcel Service: There's no getting around the fact that the wind-down of the COVID-19 pandemic has proven challenging for United Parcel Service (UPS). The stock soared in the wake of a wave of online shopping, but the return of in-person shopping since 2022 has affected investor sentiment. Economic lethargy and new (and more expensive) labor contracts also contribute to its recent weakness. All told, UPS shares are now down 45% from their early 2022 peak. It's arguable, however, that sellers overshot their target on fears that trouble would linger longer than expected and cut deeper into its business.

Deliveries, at least within the U.S. market, are actually on the rise. The Institute of Supply Management's measures of total deliveries from manufacturers and service providers continue to inch higher from their 2023 lull. Consumers are also doing their part. Amazon's North American business saw a 9% uptick last quarter, while its international operations experienced nearly 7% growth. Additionally, the American Association of Railroads reports that total rail traffic in North America aligns with levels seen last year and the year before, while intermodal rail traffic is higher than it has been in the past three years.

This has implications for UPS since goods shipped in intermodal containers often end up in UPS delivery vans. Analysts expect United Parcel Service's revenue to grow nearly 5% next year, driving greater earnings growth. While higher-growth and higher-yielding stocks exist, the forward-looking dividend yield of 5% that UPS offers is compelling, especially given its strong growth prospects and relatively low level of risk.

Devon Energy: Devon Energy's (DVN) forward-looking yield of 4.7% is just as attractive as United Parcel Service's, but there's a catch. The stock's payout isn't consistent and fluctuates with the company's ever-changing earnings. If you need reliable, predictable income to pay your recurring bills, this isn't the ideal stock to start with. However, if you're able to digest erratic dividend income in exchange for above-average income potential, then its 22% pullback from its April peak is an opportunity.

Devon Energy is engaged in the oil and gas business with a focus on onshore projects in the U.S., spanning from South Texas up to North Dakota. Last quarter, it produced an average of 335,000 barrels of crude oil and 1.1 billion cubic feet of natural gas per day, roughly matching its recent production levels. The energy business is inherently tricky due to constant fluctuations in market prices for oil and gas, while the costs of drilling and extraction remain relatively unchanged. This leads to soaring profits when oil prices are high but slumping earnings when crude prices are pressured.

Devon stands out among its peers by distributing the bulk of its earnings as dividends. This makes it a direct play on oil prices, which is not a bad bet considering that OPEC, ExxonMobil, and Standard & Poor's all forecast that demand for oil will remain strong for at least the next 20 years.

Franklin Resources: Finally, add investment management company Franklin Resources (BEN) to your list of S&P 500 dividend stocks to buy and hold forever. Its 35% sell-off since late last year has dragged shares to nearly a four-year low and boosted its projected dividend yield to more than 6%. The pullback makes superficial sense as investors appear to be increasingly interested in exchange-traded funds (ETFs) or even individual stocks. Traditional mutual funds like those managed by Franklin Templeton seem to be falling out of favor. However, this assumption overlooks a couple of crucial realities regarding Franklin Resources.

First, despite growing interest in ETFs and must-have stocks like Nvidia or Amazon, people aren't losing interest in conventional funds. According to data from the Investment Company Institute, U.S. fund companies managed $28.6 trillion worth of assets by the end of 2022, down slightly from 2021's record due to the bear market at the time, but on track to reach $33.6 trillion last year. Most of this money is invested in mutual funds rather than ETFs. Franklin's total assets under management (AUM) currently stand at $1.66 trillion, surpassing its late-2021 peak of nearly $1.6 trillion.

Secondly, the fund-management business model thrives not only in bull markets but also during downturns as mutual funds charge management fees based on invested asset amounts even when poor market performance drags fund values down. This explains how Franklin held up so well in 2022 despite the market's relatively lousy performance. The key is attracting and retaining investor money. Analysts expect revenue growth of 7% this year and another 6% next year, which will rekindle earnings growth. These earnings support dividend payments that have grown every year for the past 44 years, a track record that's hard to match.