3 High-Yielding Dividend Stocks That Haven't Been This Cheap in Years

Buying a quality dividend stock near a multiyear low can be a great move, especially if you're willing to be patient and hang on for the long term. As long as the dividend remains intact, the yield moves up as a stock price falls in value. And that's been the case for all the stocks listed here.

PepsiCo (NASDAQ: PEP), UnitedHealth Group (NYSE: UNH), and United Parcel Service (NYSE: UPS) are all down more than 15% in the past 12 months and are trading near multiyear lows. Their yields are also all firmly above the S&P 500 average of 1.4%.

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Here's a look at why these three can be good stocks to buy, despite all the bearishness surrounding their respective businesses.

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1. PepsiCo: 4.1% yield

Beverage and snack company PepsiCo has experienced a 25% decline in value over the past 12 months. The company's growth has been underwhelming, and sales for the first three months of this year were down around 2%. Investors are also concerned that the growing popularity of GLP-1 weight loss treatments could result in a continued decline in demand for snacks.

However, the company generated positive organic growth of more than 1% during the first quarter of this year, and it was a significant impact from foreign exchange that resulted in the overall decline in sales. And while sales aren't taking off, that doesn't mean the business is in deep trouble; many consumers are, after all, trading down to private label brands in an effort to save money due to worsening economic conditions. Price increases have also taken their toll in recent years. But with many strong brands in its portfolio, PepsiCo can still make for a solid dividend stock to hang onto as its business could recover in the long run.

The company has generated $7.3 billion in free cash flow over the trailing 12 months, which is also about how much it has paid in dividends during that stretch. While the company is facing some challenges, it's not in a perilous situation, and the payout isn't in any imminent danger.

PepsiCo's stock hasn't been trading at these levels since 2021, and with a price-to-earnings (P/E) multiple below 20, it could make for a good value buy right now.

2. UnitedHealth Group: 2.1%

Leading health insurance company UnitedHealth is also trading around its four-year low as rising costs have chipped away at its bottom line.

The company faced adversity in its most recent quarter, including "heightened care activity indications" in its Medicare Advantage business. However, it notes that the issues it experienced during the period are "highly addressable" this year, as it's confident it can get back to growing its earnings in the range of 13% to 16%, which has been a long-term target for the business.

Over the course of the first three months of the year, the company's adjusted earnings per share still rose by 4% year over year.

United, being a top health insurance company, is poised to benefit from an increase in customers over the long term, particularly with the number of seniors rising in the years ahead. And with a modest payout ratio of just 35%, the company is in no serious risk of having to cut or stop its dividend payments anytime soon.

Trading at 17 times its trailing earnings, the stock is a cheap buy as its five-year average is a P/E multiple of nearly 20.

3. United Parcel Service: 6.8% yield

As fears of a recession and a slowdown in spending weigh on the economy, investors have soured on logistics giant United Parcel Service, better known as UPS. Not only is it trading near its 52-week low, but it hasn't been at its current price in nearly five years.

The company has struggled with revenue as its top line for the first three months of 2025 totaled $21.5 billion, versus the $21.7 billion it reported in the prior-year period. UPS recently announced it would be cutting 20,000 jobs and scaling back deliveries involving Amazon, as a way to improve its margins amid troubling economic conditions.

While these might not be great developments for growth investors, anything that improves profitability and margins can be a net positive for income investors whose priority is a safe dividend, especially one that's yielding nearly 7%, as is the case with UPS.

The company's diluted earnings per share of $1.40 this past quarter were less than the rate of its quarterly dividend ($1.64). But if the company can get its costs down, the dividend may remain intact. There is some risk here, but investors shouldn't hit the panic button just yet, as UPS does appear to have a plan in place to improve its bottom line, and that could make the stock an attractive contrarian buy given its low price point.

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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon. The Motley Fool recommends United Parcel Service and UnitedHealth Group. The Motley Fool has a disclosure policy.