3 Dividend Stocks Trading Near Their 52-Week Lows

Investors seeking higher yields may find dividend stocks trading near their 52-week lows attractive. However, it's crucial to consider the risks associated with such investments. PepsiCo (PEP), TJX Companies (TJX), and Nike (NKE) are three such stocks currently trading at or near their 52-week lows.

PepsiCo offers a dividend yield of 4.3%, which is higher than the S&P 500 average of 1.1%. The company's strong portfolio of brands, including Pepsi beverages and Lay's potato chips, indicates a solid business. However, organic revenue growth has been modest at 2.5% over the past year. Despite this, PepsiCo's dividend is sustainable, with a payout ratio of 75%, suggesting confidence in the company's ability to maintain its payouts.

TJX Companies, an off-price retailer, has seen a 14% decline in its stock price since the start of the year, lifting its dividend yield to around 1.5%. While this yield is better than the S&P 500 average, it's important to note that TJX's current valuation, trading at around 25 times its trailing earnings, is high for this sector. The retailer has posted solid comparable sales growth of 4% recently, but its rich valuation leaves it susceptible to a decline, even with good performance.

Nike, the third stock on the list, has experienced a more significant decline, with a 40% drop in 2026. The apparel company's turnaround efforts have not convinced investors, leading to a 4.3% dividend yield, which is much higher than its 1% yield five years ago. Given Nike's recent decline and uncertainties surrounding its turnaround efforts, the high yield may be a warning sign rather than a positive indicator.

The stock's valuation and growth prospects are concerning, making Nike a less appealing option for dividend investors at this time.