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The lowest-yielding stock on this list pays 4.4% — more than three times the S&P 500 average.
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While these companies have been struggling of late, their payouts still look safe.
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A couple of these companies have been raising their payouts for decades.
Buying a dividend stock when it’s near its 52-week low means you have an opportunity to secure a higher-than-typical yield. A falling share price pushes a yield up, and as long as the business’ fundamentals are strong, you can benefit both from its recurring dividend payments and a possible rally in its share price in the future.
Three stocks that yield more than 4% and that are near their lows for the past year are PepsiCo (NASDAQ: PEP), General Mills (NYSE: GIS), and Chevron (NYSE: CVX). They are all off to poor starts for 2025, but here’s why you may want to consider investing $5,000 into them today.
Snacking and beverage giant PepsiCo hasn’t been a hot buy with investors this year; it has fallen by 15%. While its growth rate hasn’t been impressive, investors may be a bit overly bearish on the stock.
In its most recent quarter, which wrapped up on March 22, the company’s sales totaled $17.9 billion, representing a decline of 1.8% year over year. And PepsiCo’s operating profit fell by 4.9%. That’s not a great performance, but it’s not disastrous, and it comes at a time when consumers are tightening their budgets amid inflation and concerns about a possible recession on the horizon.
PepsiCo isn’t standing still, either. The business is continuing to expand, and earlier this year, it announced a $2 billion acquisition of soda company Poppi, a prebiotic brand that caters to health-conscious consumers. It’s a good way to diversify and reach a different type of customer, which may help improve its growth rate in the process.
PepsiCo’s dividend, which currently yields 4.4%, well above the S&P 500 (SNPINDEX: ^GSPC) average of 1.3%, is still safe with a payout ratio of around 80%. Ideally it would be lower, but it doesn’t look to be at any risk right now of being cut. This is also a Dividend King, so the outlook would need to be particularly dire for PepsiCo’s management to break its impressive streak of dividend increases, which will hit 53 years with its upcoming June payment.
The stock currently trades just a few dollars from its 52-week low, and at a modest price-to-earnings multiple of 19, PepsiCo can be an underrated buy and a great place to invest $5,000. Not only can you generate approximately $220 in annual dividend income from the stock via its dividend by investing that much, but you can also net a decent return if it’s able to recover from its decline this year.

DJ Kamal Mustafa
I’m DJ Kamal Mustafa, the founder and Editor-in-Chief of EMEA Tribune, a digital news platform that focuses on critical stories from Europe, the Middle East, Africa, and Pakistan. With a deep passion for investigative journalism, I’ve built a reputation for delivering exclusive, thought-provoking reports that highlight the region’s most pressing issues.
I’ve been a journalist for over 10 years, and I’m currently associated with EMEA Tribune, ARY News, Daily Times, Samaa TV, Minute Mirror, and many other media outlets. Throughout my career, I’ve remained committed to uncovering the truth and providing valuable insights that inform and engage the public.