3 High-Yielding Dividend Stocks That Haven’t Been This Cheap in Years
From Nasdaq: 2025-05-08 04:25:00
Investing in quality dividend stocks near multiyear lows, such as PepsiCo (PEP), UnitedHealth Group (UNH), and United Parcel Service (UPS), can offer high yields. These stocks have all declined over 15% in the past year and offer yields above the S&P 500 average of 1.4%.
PepsiCo, despite facing challenges like declining sales and increased competition, still has strong brands and positive organic growth. With a P/E ratio below 20 and a 4.1% yield, it could be a good value buy. The company generated $7.3 billion in free cash flow over the past year, supporting its dividend.
UnitedHealth Group, a leading health insurance company, is trading near a four-year low. Despite recent challenges, the company is confident in its ability to grow earnings and has a modest payout ratio of 35%. With a P/E ratio of 17, the stock is considered a cheap buy.
United Parcel Service (UPS) is facing revenue struggles amid economic uncertainties. The company recently announced job cuts and delivery scaling to improve margins. Despite these challenges, UPS offers a high dividend yield of 6.8%, making it attractive for income investors.
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