Dividend stocks are currently facing challenges due to high interest rates, making them less attractive to investors seeking returns from low-risk, interest-paying assets. However, this presents an opportunity for long-term investors to consider investing in solid dividend stocks that are trading at low prices.
Bristol Myers Squibb (NYSE: BMY), Cisco Systems (NASDAQ: CSCO), and Starbucks (NASDAQ: SBUX) are examples of high-yielding stocks that are trading near their 52-week lows and could be worth adding to a portfolio.
1. Bristol Myers Squibb
Bristol Myers Squibb has underperformed the market significantly this year, with a decline of over 21% while the S&P 500 has seen a 17% increase. The company’s high debt load and upcoming patent expirations have contributed to investor concerns. Despite these challenges, Bristol Myers has a plan to introduce new drugs to offset lost revenue from expiring patents, potentially generating up to $25 billion in revenue by the end of the decade.
With the stock trading near its 52-week low and offering a dividend yield of 6%, Bristol Myers could be an attractive option for investors willing to take on some risk.
2. Cisco Systems
Cisco Systems has seen a modest 9% decline in its stock price this year. The company, known for its networking and security products, is poised to benefit from upcoming IT upgrades by companies. Despite a recent revenue decline, Cisco’s diverse product offerings position it well for future growth.
Trading near its 52-week low and with a dividend yield of 3.5%, Cisco could be a promising option for investors looking for both income and growth potential.
3. Starbucks
Starbucks has experienced a significant 24% drop in its stock price this year, driven by concerns about stagnant growth. The company has been implementing strategies to boost sales, including price reductions on menu items. Despite these challenges, Starbucks has ambitious growth plans, including expanding its store count.
With the stock trading near its 52-week low and offering a dividend yield of over 3%, Starbucks could be a compelling opportunity for long-term investors.
Should you invest $1,000 in Bristol Myers Squibb right now?
Consider the potential growth opportunities in the market before investing in Bristol Myers Squibb. While the stock may offer value, it’s essential to explore other investment options that could yield significant returns.
For more insights on promising stocks, check out the 10 best stocks recommended by the Motley Fool analyst team.
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