Dividend-Paying Stocks Drop to Near 52-Week Lows

Investors are hesitant to put their money into stocks during uncertain times. The S&P 500 index has risen by 12.5% this year, but two high-yield dividend-paying stocks have dropped to near their 52-week lows.

Realty Income (O) is a real estate investment trust that pays out at least 90% of its taxable income as dividends. Despite reaching its 52-week low of $55.07 on Sept. 24, the company's business fundamentals remain sound. It generates most of its rental income from retail properties and has an occupancy level of 98.8% as of June 30.

The board of directors at Realty Income has raised dividends for 116 straight quarters, including a recent increase to $0.2715 in October's payout. This results in a dividend yield of 5.9%, significantly higher than the S&P 500's 1.1% yield.

Home Depot (HD), on the other hand, is the world's largest home-improvement retailer and has been affected by broad economic factors and interest rates. The company's same-store sales growth was tepid at 1.7% in the fiscal second quarter, but investors will receive an above-market yield of 3.2%.

Both Realty Income and Home Depot are viewed as buying opportunities for income-oriented investors, despite the current market conditions.