Dividend Stocks Trading Near Lows Offer Attractive Options
Three dividend-paying stocks are trading near their 52-week lows, making them attractive options for income investors. Kroger (NYSE:KR), Duke Energy (NYSE:DUK), and McDonald's (NYSE:MCD) have posted solid single-digit growth in their most recent quarters and offer yields ranging from 2.6% to 3.5%. Their relatively low prices make it an ideal time to buy, as they can potentially provide both a higher yield and future capital gains if the stocks rebound.
Kroger is a leading grocery company with stable operations, generating recurring income. Its stock has fallen around 9% this year, trading near its 52-week low of $54.15. With an estimated price-to-earnings ratio of around 11 times its future earnings, Kroger makes for a compelling income stock to own today.
Duke Energy is another attractive option, providing essential gas and electric services to millions of customers. Its operating revenue showed minimal growth in the most recent quarter, but its operating income increased significantly from $1.8 billion to over $2 billion. Despite being up around 7% this year, it's still trading within about 10% of its 52-week low of $113.90.
McDonald's is a fast-food company with a loyal customer base and strong financials. Its revenue increased by 4% in the June quarter, while net income grew at a slightly higher rate of 5%. Despite its lower yield compared to Kroger and Duke Energy, McDonald's has increased its dividend for 49 consecutive years.