The one thing that makes buying a high-yielding stock even better is buying it at a reduced price. Then, not only is it possible to benefit from the yield being higher than normal, but it can also set investors up for capital gains in the future, if the stock is able to rebound. Three dividend stocks that pay above-average yields and that are trading near their 52-week lows right now are Kroger (NYSE:KR), Duke Energy (NYSE:DUK), and McDonald's (NYSE:MCD).
Here's why now may be the time to pounce on these cheap-looking stocks. This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia.
For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue » Leading grocery company Kroger makes for a terrific long-term investment. It generates plenty of recurring, consistent income, and the stock also offers a decent yield of 2.6% -- more than double the S&P 500 average of 1%.
Kroger's stock has fallen about 9% this year, now trading just a few dollars above its 52-week low of $54.15. It's admittedly not a terribly exciting stock to own, especially when the market is fully entrenched in tech these days and the opportunities related to artificial intelligence. A solid company such as Kroger may simply not be at the top of investors' lists.
However, the business is doing well and is what you would expect from a top grocer with slow but steady operations. During the first quarter of its fiscal year (the period ended on May 23), the company's sales were up slightly, from $45.1 billion in the prior-year period to $46.1 billion. Nothing terribly exciting, but that's the kind of stability that dividend investors often seek out from a reliable dividend investment.
Trading at just under 11 times its estimated future earnings, based on analyst expectations, Kroger makes for a compelling income stock to own today. Another attractive option for income investors is Duke Energy, an energy company that provides essential gas and electric services to millions of customers across the country. This is another business that may not be all that exciting, but like Kroger, it's precisely the type of investment that can appeal to dividend investors who want to keep their risk fairly low.
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