Got $5,000: These Dividend Stocks Trade at a 52 Week Low

Plus, with markets still volatile, one of the best ways to protect your portfolio is with yielding dividend stocks. Not only do they help smooth out the chaos impacting your holdings, but they also offer reliable payouts.

Here are five of the top dividend stocks you may want to consider today.

Target Corporation 

With a yield of 4.65%, Target (NYSE:TGT) hasn’t been this cheap since early 2020.

However, with a good deal of negativity now priced into the stock, you may want to buy the Target stock for its dividend and for the opportunity to cash in on its recovery.

We also have to consider that Target’s dividend is safe, with a free cash flow payout ratio of just over 50%. Plus, Target is trading at just 10.6x forward earnings and at less than half of sales.

Technically, TGT appears to have caught strong support at around $90 and is just starting to pivot higher from its 52-week low. From its last traded price of $96.37. we’d like to see the retailer stock initially retest $110.

UnitedHealth Group 

With a yield of 2%, beaten-down shares of UnitedHealth Group (NYSE:UNH) are also attractive.

The stock fell apart after missing earnings and cutting guidance.

In fact, its EPS of $7.20 missed by nine cents. Revenue of $109.58 billion, up 9.8% year over year, missed by $2.02 billion. The company also revised its 2025 adjusted earnings outlook to $26.00 to $26.50, down from $29.50 to $30.00 per share. All of which led several firms to cut their price targets or downgrade the stock.

However, it also appears the UNH stock has priced in the negativity. Now trading at $420, we’d like to see the stock initially retest $480. Fear has become an opportunity for UNH.

PepsiCo 

With a yield of 4.05%, oversold shares of PepsiCo (NASDAQ:PEP) are also a strong buy at current prices.

PEP has now raised its dividend for the 53rd time since 1965. Most recently, PEP paid out a quarterly dividend of $1.355 per share – a 7% increase year over year. Plus, we also have to consider that PEP now trades at 16x earnings, which is below its five and 10-year numbers.

Helping, analysts at RBC just reiterated a sector perform rating on the stock with a target price of $163 per share. We’ll also get a better look at PEP when it releases earnings.

In addition, a good deal of negativity has also been priced into the PEP stock.

Toll Brothers

Oversold and starting to pivot higher, Toll Brothers (NYSE:TOL) also just raised its dividend by 9% to 25 cents per share, which was paid on April 25 to shareholders of record as of April 11. It’s also the fifth consecutive year the company raised its dividend.

The luxury real estate sector is also still in high demand.

Even with higher interest rates, affluent buyers are still buying. “People with the means to buy high-end homes are jumping in now because they feel confident prices will continue to rise,” said David Palmer, a Redfin Premier agent, as quoted by Kiplinger.com. “They’re ready to buy with more optimism and less apprehension. It’s a similar sentiment on the selling side.”

A good deal of fear appears to be priced into the Toll Brothers’ stock.

Pfizer

With a yield of just under 7.5%, Pfizer (NYSE:PFE) trades at a low last tested in early 2021.

Today, it’s trading at just 7.8x forward earnings, with a PEG ratio of 0.55, and is now one of the highest-yielding drug stocks on the market.

And while a cautious UBS comment did fuel some of the recent downfall, most of that negativity appears to have been priced in. With a respectable dividend and cost-cutting efforts, we do not expect Pfizer to remain undervalued for long.

Plus, Pfizer recently offered assurance, reiterating its goal of growing its dividend and meeting its targets by the end of 2025. All of which will provide more balanced capital allocation, as noted by Chief Financial Officer David Denton.

Also, while the company did not buy back stock in 2024, and isn’t likely to do so this year, it did raise its quarterly dividend to 43 cents, which was paid out on March 7.

The post Got $5,000: These Dividend Stocks Trade at a 52 Week Low appeared first on 24/7 Wall St..