5 Dividend Stocks Trading Near 52-Week Lows That I'd Hold for the Next 5 Years.

Source Motley_fool

Key Points

  • These stocks are all trading down in 2026 while paying dividend yields between roughly 3.6% and 7.6%.

  • PepsiCo and Hershey offer turnaround potential, while General Mills appeals to income-focused, patient investors.

  • Clorox’s cash flow concerns and Kraft Heinz’s debt make dividend sustainability a key risk.

  • Motley Fool Issues Rare "Total Conviction" Buy Alert ›

Grocery store stocks have had a choppy year. Tariff pressure, shoppers trading down to store brands, and years of underinvestment at some companies have pushed several big consumer goods names down double digits in 2026, even as the broader market sits near records.

A falling stock isn't always a cheap business; sometimes it's cheap because it deserves to be. A few of these names are paying you a real dividend to find out which kind of cheap this is, and patient investors who can hold through some uncomfortable years could come out ahead.

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Here are five consumer-facing stocks trading near 52-week lows, each dealing with its own version of the slump, and why I think the dividend makes the wait worth it.

A smiling cashier hands a card payment terminal to customer at checkout.

Image source: Getty Images.

1. PepsiCo: An activist is forcing the change it needed anyway

PepsiCo (NASDAQ: PEP) trades around $129, near its 52-week low of $123.47 and down sharply from a high above $171. The dividend yields roughly 4.6% and has been raised for 54 straight years, making it a Dividend King, a company that has grown its dividend payment annually for at least 50 consecutive years.

What changed this year: Elliott Management took a $4 billion stake and pushed PepsiCo into a formal agreement to cut its U.S. product lineup by roughly 20%, lower prices on core brands, and overhaul its North American supply chain. I see this less as weakness and more as outside pressure forcing moves management should have made years ago. If these cuts pay off, the next five years should see some juicy solid reversal in the stock price.

2. Hershey: Cocoa is back!

Hershey (NYSE: HSY) stock sits around $169, off its 52-week low of $156, yielding about 3.6%. Cocoa prices have fallen from last year's peak, and Hershey is using the relief to bring Reese's and Hershey's bars back to their original recipes after trimming cocoa content during the spike, per News Nation. Management guides to 30%-35% adjusted earnings growth this year, among the boldest forecasts in food, per the Wall Street Journal. If earnings can turn around with cocoa prices being more manageable, this stock is a solid dividend buy.

3. General Mills: A 127-year streak with no cuts

General Mills' (NYSE: GIS) share price has fallen around 30% in 2026 and sits near its 52-week low of $31.18, pushing the yield above 7.5%. The company and its predecessor have paid an uninterrupted dividend for 127 years, since 1898, and have never cut it, even though there have been multi-year stretches without a raise. Volume has been soft as shoppers trade down, but management says fiscal 2027 shifts focus to real product innovation, think protein and fiber additions, rather than just defending price.

Here's why I'd personally still buy and hold it five years out: a company that didn't cut its dividend through the Great Depression, two world wars, and every recession probably isn't going to blink because people are buying more store-brand cereal right now.

4. Clorox: A Dividend King with a cash flow problem worth watching

Clorox (NYSE: CLX) trades around $86, well off its 52-week high of $128.90, yielding close to 6%. Clorox is about to raise its dividend for a 50th straight year, officially qualifying as a Dividend King. The honest risk: Clorox paid out $452 million in dividends over the nine months ended March 31, but only generated $161 million in free cash flow in that same stretch, per its own cash flow statement. Some of that gap is a one-time hit, roughly $476 million went toward buying out Procter & Gamble's remaining stake in their Glad joint venture, per S&P Global, and it is not an ongoing cost. Still, I'd want to see that cushion rebuild before assuming the streak protects you no matter what.

5. Kraft Heinz: A turnaround before the turnaround

Kraft Heinz (NYSE: KHC) is the riskiest name here, yielding over 7%. The company announced a split into two companies in 2025, then paused it in February to redirect $700 million into brand reinvestment under new CEO Steve Cahillane, an admission its first plan wasn't the fix. I'd treat this as the smallest position here until sales trends turn. Although its dividend yield of around 7% is appealing, I would buy small here because of its high debt and history of dividend cuts.

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Micah Zimmerman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Hershey. The Motley Fool recommends Kraft Heinz. The Motley Fool has a disclosure policy.

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