Your math is correct. You have a 1.25 Ohm 2 Watt resistor but you would not want to have it dissipate the max of 2 watts. I should have mentioned that as Carl points it out.
That's not enough overhead for a lot of situations. The 1/2W rating is if they are free standing in cool air, and 4 resistors togther will heat each other.
You need to make sure they are up off the PCB and well away from each other, and hopefully with some air cooling (not a sealed enclosure).
If it was me I woudl just use a 1.2 ohm 5W resistor and mount it a bit above the PCB.