Investors love dividend stocks because they provide dependable passive income streams and an excellent opportunity for solid total return. Total return includes interest, capital gains, dividends, and distributions realized over time. In other words, the total return on an investment or portfolio consists of income and stock appreciation. At 24/7 Wall St., we have focused on dividend stocks for over 15 years because, despite the stock market’s ups and downs, many people need reliable passive income streams to supplement their income from employment or other sources such as Social Security and pensions.
With the stock market on shaky ground, inflation roaring higher, and multiple worrisome geopolitical issues at play, no one wants to be the last one at the party should a 20% bear-market sell-off occur. Smart investors are already rotating out of artificial intelligence and data center memory trades into safer areas. We decided to screen our 24/7 Wall St. research database, looking for quality stocks trading at or near 52-week lows. We were not looking for tech burnouts that could surprise with a dead-cat bounce, but for quality large-cap stocks that, for various reasons, are trading at their lowest levels, in some cases for years. All are rated Buy by the top Wall Street firms we cover.
AT&T
AT&T (NYSE: T | T Price Prediction) is the world’s fourth-largest telecommunications company, measured by revenue. The legacy telecom has been undergoing a lengthy restructuring while maintaining a solid dividend of 5.42%. Twelve analysts have given the stock a Buy rating, indicating broad support from Wall Street.
AT&T recently hit a fresh 52-week low, making it one of the higher-yielding income plays for investors who are comfortable trading slower growth for dependable cash flow. Worries over competition from Starlink have weighed on the shares, but at current levels, it looks like a bargain.
The company provides a range of telecommunications, media, and technology services worldwide. Its Communications segment offers wireless voice and data communications services.
Through its company-owned stores, agents, and third-party retail stores, it sells:
- Handsets
- Wireless data cards
- Wireless computing devices
- Carrying cases
- Hands-free devices
AT&T also provides:
- Data
- Voice
- SecuT
- Cloud solutions
- Outsourcing
- Managed and provided professional services
- Customer premises equipment for multinational corporations, small and mid-sized businesses, and governmental and wholesale customers
Additionally, this segment provides residential customers with fiber broadband and legacy voice telephony services. It markets its communications services and products under:
- AT&T
- Cricket
- AT&T PREPAID
- AT&T Fiber
The company’s Latin America segment provides wireless services in Mexico and video services throughout the region. This segment markets its services and products under the AT&T and Unefon brands.
J.P. Morgan has a $33 price target for the stock.
General Mills
With products that never go out of style and a strong 6.49% dividend yield, this is a rebound story that will reward patient investors. General Mills (NYSE: GIS) is a global manufacturer and marketer of branded consumer foods, and trades at a cheap 10.4 times estimated 2026 earnings. Its segments include:
- North America Retail
- International
- North America Pet
- North America Foodservice
The North America Retail segment reflects business with a variety of grocery stores, mass merchandisers, membership stores, natural food chains, drug, dollar, and discount chains; convenience stores; and e-commerce grocery providers.
The International segment consists of retail and foodservice businesses outside the United States and Canada. Its product categories include super-premium ice cream and frozen desserts, meal kits, salty snacks, snack bars, dessert and baking mixes, and shelf-stable vegetables.
The North America Pet segment includes pet food products sold in the United States and Canada in national pet superstore chains, e-commerce retailers, and grocery stores.
The North America Foodservice segment product categories include ready-to-eat cereals, snacks, and baking mixes.
Piper Sandler has an Overweight rating and a $41 target price.
McDonald’s
McDonald’s (NYSE: MCD) is a solid pick whether the economy heads south or north, and it’s among the safest large-cap restaurant ideas. The legacy fast-food heavyweight is approaching the 50-year mark of dividend increases and is widely seen as a likely entrant to the Dividend Kings, given its consistent dividend growth and durable business model. And it pays a solid 2.59% dividend yield.
The company operates and franchises McDonald’s restaurants in the United States and internationally. Approximately 95% of McDonald’s roughly 13,500 U.S. restaurants are owned and operated by independent business owners. The company’s restaurants offer:
- Hamburgers and cheeseburgers
- Chicken sandwiches and nuggets
- Fries
- Salads
- Shakes
- Frozen desserts
- Sundaes
- Soft serve cones
- Bakery items
- Soft drinks
- Coffee
- Muffins
- Sausages
- Biscuit and bagel sandwiches
- Oatmeal
- Hash browns
- Breakfast burritos
- Hotcakes
Wells Fargo has an Overweight rating with a $320 target price for the shares.
PepsiCo
This top consumer staples stock reported solid second-quarter earnings and will continue to supply all the goods for summer picnics and parties. PepsiCo (NYSE: PEP) is a global food and beverage company with a solid 3.95% dividend yield. Activist investor Elliott Investment Management recently took a $4 billion stake in PepsiCo, revealing a strategy to unlock value within the company’s iconic brand by focusing on core strengths, such as innovation and brand marketing, rather than its capital-intensive bottling operations. This move caused PepsiCo’s stock to surge, with Elliott believing the company could see over 50% upside if its proposed strategic changes were implemented. However, these changes would involve a long-term transformation.
Its Frito-Lay North America segment offers:
- Lays and Ruffles potato chips
- Doritos, Tostitos, and Santitas tortilla chips
- Cheetos cheese-flavored snacks, branded dips
- Fritos corn chips
The company’s Quaker Foods North America segment provides:
- Quaker Oatmeal
- Grits
- Rice cakes
- Natural granola and oat squares
- Pearl Milling mixes and syrups
- Quaker Chewy granola bars
- Cap’n Crunch cereal
- Life cereal
- Rice-A-Roni side dishes
PepsiCo’s North America Beverages segment offers beverage concentrates, fountain syrups, and finished goods under these brands:
- Pepsi
- Gatorade
- Mountain Dew
- Diet Pepsi
- Aquafina
- Diet Mountain Dew
- Tropicana Pure Premium
- Sierra Mist
- Mug
Goldman Sachs has a Buy rating with a $183 target price.
Unilever
This is a great consumer staples company for more conservative accounts to consider. Unilever (NYSE: UL) is a fast-moving consumer goods company operating across Asia Pacific, Africa, the Americas, and Europe. Unilever is trading near its 52-week lows with an attractive valuation. It currently yields 3.65% and trades at a P/E of just over 19, making it a compelling income stock at its depressed price.
It operates through five segments:
- Beauty & Wellbeing
- Personal Care
- Home Care
- Foods
- Ice Cream
The Beauty & Wellbeing segment sells hair care products, such as shampoo, conditioner, and styling products; skin care products, including face, hand, and body moisturizers; and prestige beauty and health & wellbeing products, including vitamins, minerals, and supplements.
The Personal Care segment offers a range of skin-cleansing products, including soaps and shower gels, deodorants, and oral care products such as toothpaste, toothbrushes, and mouthwash. The Home Care segment sells fabric care products, including washing powders and liquids, rinse conditioners, and fabric enhancers, as well as home and hygiene products.
The Foods segment offers cooking aids and mini meals, including soups, bouillons, and seasonings, as well as condiments such as mayonnaise and ketchup, and food solutions. The Ice Cream segment offers a range of ice cream products, including both in-home and out-of-home options.
The company provides its products under these well-known brands:
- AXE
- Ben & Jerry’s
- Clear
- Cif
- Closeup
- Comfort
- Cornetto
- Dermalogica
- Domestos
- Dove
- Dove Men+Care
- Hellmann’s
- Horlicks
- Knorr
- LUX
- Lifebuoy
- Liquid I.V.
- Magnum
- Nutrafol
- OMO
- Pond’s
- Paula’s Choice
- Pepsodent
- Radiant
- Rexona
- Sunlight
- Sunsilk
- Surf
- TRESemmé
- Vaseline
- Wall’s
- Breyers
- Yasso
DZ Bank has a Strong Buy rating and a $70 target price.
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