Got $5,000? These 3 High-Yielding Stocks Are Trading Near Their 52-Week Lows

Source Motley_fool

Key Points

  • These stocks all yield more than 2%.

  • These companies have also been increasing their payouts for decades.

  • These are blue chip stocks that can be ideal for long-term investing.

  • 10 stocks we like better than McDonald's ›

When dividend stocks are struggling and trading at reduced valuations, there's a big incentive to load up on them. At lower share prices, not only could they generate better returns, but their yields are also higher.

If you've got $5,000 that you can afford to invest in dividend stocks, three attractive options to consider right now are McDonald's (NYSE: MCD), Procter & Gamble (NYSE: PG), and Abbott Laboratories (NYSE: ABT). These stocks are all trading near their 52-week lows, and here's why they can be excellent additions to your portfolio.

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McDonald's

Fast food giant McDonald's is one of the safest income stocks you can own. Its business has been growing steadily over the years, and strong financial results have enabled it to expand its dividend along the way. Last year, it extended its dividend growth streak to 49 years, with a generous 5% increase to its payout. While many dividend growth stocks may only make modest increases, that's a decent bump up that's higher than the rate of inflation.

The stock currently yields 2.6%, which is more than double the rate of the S&P 500 average (1.1%). Between a high yield and its willingness to reward shareholders with annual dividend increases, the fast food stock can be a no-brainer option for income investors. The stock's payout ratio of 60% also remains modest, giving the company the flexibility to invest back into its business while also being able to comfortably raise its payout.

This year, however, amid challenging economic conditions, the stock is down around 7%, and it's trading right around its 52-week low. At 24 times earnings, its valuation is relatively cheap when compared to the average stock on the S&P 500, which trades at a multiple of 26. For long-term investors, now can be an ideal time to buy shares of McDonald's.

Procter & Gamble

Another top dividend stock that hasn't been all that hot of a buy this year is Procter & Gamble. Although it's up around 1% thus far in 2026, it's about 5% from its 52-week low of $137.62. Its valuation is even more modest than McDonald's, as it trades at just over 21 times its trailing earnings.

Procter & Gamble is known for having a stable, slow-growing business built around its varied products and high-quality brands, which are popular around the globe. Over the trailing 12 months, it has generated nearly $87 billion in sales, with its operating income being nearly one-quarter of that, totaling $20 billion. That signifies solid pricing power (due to its strong brands) and highlights how well-run and efficient the business is.

What's truly special about this stock, however, is that it has been paying dividends going back to 1890. And it has now increased its dividend for 70 straight years. Not only is its 2.9% yield well above average, but there's also a significant incentive to simply buy and hold here, given the high likelihood that the recurring income you'll earn from the stock will rise higher over time.

Abbott Laboratories

Healthcare giant Abbott Laboratories is another terrific dividend growth stock to buy and hold. Its yield is comparable to the other stocks on this list at 2.9%, and its dividend growth streak is 54 consecutive years. It has boosted its payout by over 70% since 2020, as it prides itself on not only offering a consistent and reliable dividend but also making generous increases along the way. Its most recent rate increase amounted to a 6.8% bump up for shareholders.

The stock, however, has been struggling badly this year, with its shares falling more than 30% heading into trading on Wednesday. But Abbott can be an intriguing stock to buy, especially with the company recently acquiring Exact Sciences (the costly $23 billion deal is a key reason why Abbott's stock has been trending lower), which it believes will help it become a leader in the oncology diagnostics market. This year, Abbott is forecasting a comparable sales growth rate of at least 6.5%, in a testament to its robust operations.

At 24 times earnings, it's a fairly valued stock that could have plenty of upside in the long run. With more growth on the horizon and a terrific dividend, it can be an enticing healthcare stock to buy on weakness right now.

Should you buy stock in McDonald's right now?

Before you buy stock in McDonald's, consider this:

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*Stock Advisor returns as of May 6, 2026.

David Jagielski, CPA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Abbott Laboratories. The Motley Fool recommends the following options: long January 2028 $320 calls on McDonald's and short January 2028 $340 calls on McDonald's. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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