High-Yield Stocks Trading Near Lows: Hershey, McDonald's, and NetEase Offer Attractive Dividend Opportunities

The S&P 500 may be yielding about 1%, but there are three high-yield stocks trading near their 52-week lows that dividend income investors are sleeping on. Hershey, McDonald's, and NetEase have seen their stock prices drop due to various reasons such as higher cocoa prices for Hershey, softened U.S. sales for McDonald's, and adjusted net income decline for NetEase.

Hershey has been pressured by higher cocoa prices, which has led to lower margins. However, the company is expected to see relief in the coming year due to deflation in cocoa prices. With a forward yield of 3.45%, Hershey offers an attractive dividend opportunity. Analysts project earnings growth near 20% annually over the next several years.

McDonald's has seen its stock price drop 19% year-to-date, but the company remains a strong dividend business with a 50-year streak of consecutive dividend growth. The company recently declared a 4% increase in quarterly dividend to $1.93, which translates to a forward yield of 3.1%. McDonald's exceptional adjusted operating margin and strong brand loyalty make it an attractive investment opportunity.

NetEase has been affected by the decline in adjusted net income due to investment losses. However, the company remains profitable with a trailing-12-month operating margin of 35%. NetEase recently declared a $0.48 dividend per ADS, which translates to a forward yield of 1.65%. The market opportunity for NetEase is substantial, with China's gaming market projected to reach $52 billion in 2025.