Dividend Stocks at 52-Week Lows Offer Attractive Yields
The three top dividend stocks trading near their 52-week lows are Kroger (KR), Duke Energy (DUK), and McDonald's (MCD). Buying a high-yielding stock at a reduced price can provide both higher yields and potential capital gains in the future. Kroger, with its 2.6% yield, has fallen about 9% this year and is trading just above its 52-week low of $54.15.
The company's sales were up slightly during the first quarter of its fiscal year, from $45.1 billion to $46.1 billion. Kroger makes for a compelling income stock to own today, with a price-to-earnings ratio of around 11 times its estimated future earnings.
Duke Energy, another attractive option for income investors, provides essential gas and electric services to millions of customers across the country. It yields 3.5% and has seen minimal growth in operating revenue, but a more meaningful increase in operating income. Despite being up around 7% this year, it's still trading within about 10% of its 52-week low of $113.90.
McDonald's, with its loyal customer base, reported $7.1 billion in revenue during the June quarter, a modest 4% increase year over year. Its stock is down 12%, pushing its yield up to around 2.8%. McDonald's has increased its dividend for 49 consecutive years and offers consistent but stable growth.