3 Magnificent High-Yield Dividend Stocks to Buy Near Their 52-Week Lows

High dividend yields mean more dividend income from your investments, but they can also signal trouble in the underlying business. What good is a high yield if the company ultimately cannot afford to pay that dividend and cuts it?

But this isn't always the case. There are exceptions. PepsiCo (NASDAQ: PEP), General Mills (NYSE: GIS), and Clorox (NYSE: CLX) all trade near their 52-week lows. A mix of poor business execution and slowed consumer spending has weighed on these companies, and their sluggish performance is turning them into high-yield dividend stocks.

Here is why investors might consider buying them near their lows, and why each has a solid shot at continuing to pay dividends.

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1. PepsiCo's prolonged slump has raised the yield to 4.3%

Traditionally, a diversified food and beverage giant such as PepsiCo can thrive in practically any economic climate. It's no accident that PepsiCo, a Dividend King, has raised its dividend for 54 consecutive years and counting.

But its products have become expensive after years of price increases, and the viral popularity of GLP-1 agonists has curbed consumer appetites. The company cut its full-year earnings outlook in the third quarter but is evaluating options to reinvigorate its business with support from an activist investor.

PepsiCo's business isn't imploding by any means. This is a growth problem. Wall Street analysts estimate that PepsiCo will grow its earnings by an average of only 4% annually over the next three to five years. PepsiCo still generates ample cash to cover its dividend, with a payout ratio of 75%.

Investors who believe that PepsiCo can rediscover higher growth have an opportunity to buy shares well below their typical valuation. The stock trades at about 18 times its trailing 12-month earnings, compared with its 10-year average of 25.

2. General Mills has a high floor thanks to its 7.1% yield

The sky isn't falling at General Mills either. Like PepsiCo, General Mills is a mature company facing growth challenges. The company reported flat organic sales growth in the first quarter of its fiscal 2027. The company's struggles have ballooned the stock's dividend yield to 7.1%.

It's fair to question whether General Mills can afford its dividend, as a yield that high is often a red flag. Although cash flow doesn't cover the dividend as comfortably as it did in previous years, the dividend remains viable at an 85% payout ratio.

General Mills will ultimately need to grow again to deliver much more to investors. Fortunately, simply sustaining the dividend gives the stock a solid floor. The company is also taking action, shuffling its product portfolio and aiming to cut $750 million in costs.

Shares trade at just over 8 times trailing 12-month earnings, so there is room for share price growth if the company can get its top line moving again. General Mills is riskier than most dividend stocks right now, but its dividend appropriately compensates you for holding shares.

3. Clorox's dividend remains constant through myriad challenges

It's been a rocky few years for Clorox, which has endured business volatility stemming from cost inflation, a cybersecurity breach, and a cumbersome transition to new enterprise resource planning (ERP) software. That shadow still hangs over the stock, which helps explain the current 5.3% yield.

Despite all the headaches, Clorox still looks like a solid business at its core. It sells a variety of category-leading niche home products, and recently acquired GOJO Industries, the parent company of Purell. That should open up some new growth opportunities.

Clorox is currently spending more than 100% of its cash flow on the dividend, but it doesn't look like that will last. Management had to draw down inventory as part of its ERP transition last year. As a result, organic revenue jumped 18% in the first quarter of its fiscal 2027.

Again, high yields typically come with more risk. Otherwise, they would trade at higher prices and lower yields. That said, Clorox is nearly a Dividend King, with 49 consecutive years of dividend raises, and has a path to better years as the company moves past recent challenges.

Justin Pope has positions in Clorox and PepsiCo. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.