Dividend stocks that have fallen to 52-week lows can be enticing options to buy. When share prices drop, that means the yield you're collecting rises, since it means it costs less to acquire a piece of the business, and thus, the dividend income represents a greater proportion of the money you invest. Plus, at a lower price, there's the potential to profit from a rise in price should the stock rally in the future.
Three dividend stocks that recently hit new lows that you may want to consider buying today include McDonald's (MCD +0.21%), AT&T (T +1.26%), and Unilever (UL -0.94%).
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McDonald's
Few companies in the world are as iconic as McDonald's. Its golden arches can be a welcome sight for travelers as the fast-food chain often represents a convenient and relatively low-cost option for a quick meal.
While prices have risen in recent years due to inflation, its restaurants still provide consumers with plenty of value, as evidenced by its continued growth. In the quarter ending March 31, McDonald's reported comparable sales growth of 3.8%, with performance broadly similar across international and domestic markets. It's a good sign of continually strong demand for its products.
NYSE: MCD
Key Data Points
McDonald's may not be a growth machine, but it is certainly a dependable and stable long-term investment. And, of course, let's not forget the dividend income you can generate from this investment. At 2.6%, its yield is more than double the S&P 500 average of 1%. The stock is down around 8% this year and recently hit a new 52-week low, but with a reasonable price-to-earnings (P/E) multiple of 23, it can be a great pick up today, as this is a top dividend stock you can comfortably hang on to for the long haul.
AT&T
Shares of AT&T have been falling recently as investors grow more concerned that SpaceX and its Starlink business may disrupt the broader telecom market. It's an issue that looks overblown, or at best, premature. Starlink is part of SpaceX's connectivity segment, which generated $11.4 billion in revenue last year. AT&T, by comparison, reported revenue that was 11 times that amount last year -- $125.6 billion.
AT&T is a top telecom provider, and while competition may chip away at some of its market share, the stock's recent decline represents a bit of an overreaction simply due to SpaceX gaining more attention of late as a result of its upcoming IPO. However, AT&T stock isn't exactly tumbling over a cliff; it's down around 9% for the year.
NYSE: T
Key Data Points
For dividend investors, this could be an opportune time to buy this low-volatility stock, as its yield is up around 4.9% right now. AT&T's stock is trading near its lows, and its valuation is enticing -- its P/E multiple is just seven.
Unilever
Top consumer brand Unilever is another dividend stock that's been struggling of late. Its shares are down 12% this year, making its decline the most significant on this list. The market has been concerned with the news that the company is looking to spin off its food business and the uncertainty that might bring.
While it might make the business smaller, Unilever sees it as an opportunity to be more of a pure play home and personal care company. That can help drive efficiency and allow the company to be more focused in its growth efforts. And although the food segment is a key one for Unilever, it was also its slowest-growing one in its most recent quarter, with management saying that "category conditions remained soft" in developed markets.
NYSE: UL
Key Data Points
Unilever stock currently yields right around 4%, making it another excellent income stock to buy and hold. And with its price declining, the stock's valuation looks attractive, as it trades at a P/E ratio of just over 19.
