3 High-Yield Stocks Near Their 52-Week Lows That Dividend Income Investors Are Sleeping On

While the S&P 500 is yielding about 1%, Hershey (NYSE: HSY), McDonald's (NYSE: MCD), and NetEase (NASDAQ: NTES) are trading near their 52-week lows. The market has soured on each stock for different reasons, yet these companies continue to distribute a portion of earnings to shareholders as dividends. Investors willing to look past the near-term noise can take advantage of the dip to lock in higher yields ranging from 1.7% to 3.4% from these industry-leading businesses.

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Hershey

Higher cocoa prices have pressured Hershey's costs and margins, helping push the stock down 11% over the past year. Shares now trade around $168, close to their 52-week low of $161.43. Even so, Hershey recently declared a $1.452 quarterly dividend, or $5.808 annualized. That translates to a forward yield of about 3.45% -- more than triple the S&P 500's average.

Dividend coverage is getting tight. Lower margins due to higher costs have pushed the payout ratio to roughly 82% over the past year, leaving less cushion if margins remain squeezed. But Hershey should see relief as spot cocoa prices have come off their 2025 highs.

At the Sept. 2026 Barclays conference, CFO Dave Hulays said the company has "good visibility into deflation next year from cocoa." If costs normalize, earnings power and dividend flexibility should improve.

Longer term, demand is still working in Hershey's favor. Mordor Intelligence expects the global chocolate market to grow about 6% per year to reach $246 billion by 2031, a tailwind for brands like Reese's, Kit Kat, and Hershey's. Analysts project earnings growth near 20% annually over the next several years, which would help support ongoing dividend growth.

McDonald's

McDonald's shares are down 19% year to date and sit near a 52-week low of $247.65, as U.S. sales have softened. Comparable sales in the U.S. market increased just 0.8% year over year -- a modest number that may reflect pressure on consumer spending, even though management points to execution issues as a reason for the weak quarter.

For income investors, the dividend engine is still intact. McDonald's recently declared a $1.93 quarterly dividend, a 4% increase from the prior payout. That's $7.72 annualized and a forward yield of roughly 3.1%. The raise also extends McDonald's streak to 50 consecutive years of dividend growth, placing it among the select group of Dividend Kings.

What makes McDonald's a strong dividend business isn't just the brand -- it's the business model. Roughly 95% of locations are franchised, which shifts much of the capital burden to franchisees while McDonald's collects high-margin rents and royalties. That helps explain why its adjusted operating margin remains exceptional for a restaurant company, at 46.9% in the first half of 2026.

Management continues to push its Accelerating the Arches strategy: sharpen marketing, invest in the core menu, and expand digital ordering and delivery. Meanwhile, investments to upgrade global systems are expected to reduce administrative expenses as a percentage of sales beginning in 2027. Analysts forecast earnings growth of about 7.7% annually, a reasonable foundation for continued dividend increases.

NetEase

NetEase stock is down 15% this year and is trading around $117, not far above its $106.06 52-week low. As one of China's leading video game publishers, NetEase benefits from exposure to a massive market. The stock has slipped as adjusted net income fell 8% year over year in the first half of the year, but that's mainly due to investment losses -- not weak performance from its games.

NetEase is a highly profitable game publisher, with its trailing-12-month operating margin at 35%. The company recently declared a $0.48 dividend per American Depositary Share (ADS) to U.S. shareholders. Annualized, that works out to a forward yield of about 1.65% at the current $116 share price.

There is one caveat: NetEase adjusts payouts based on year-to-year performance, which means the dividend can fluctuate. Even so, over the last five years, the dividend has grown at a 30% compound annual rate, and the trailing payout ratio sits around 40% of earnings, leaving room to support the payout even if growth is uneven.

The market opportunity remains large. China's gaming market is estimated to reach $52 billion in 2025, and the player base is projected to climb to 769 million by 2030, according to Niko Partners. That creates a substantial runway for major titles, including Eggy Party, which has topped 100 million monthly active users.

Analysts expect earnings to grow around 10% annually over the long term. If that plays out, shareholders could see dividend growth broadly track that earnings expansion over time.

John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Hershey. The Motley Fool recommends Barclays Plc and NetEase and 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.