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

Core Viewpoint - Buying quality dividend stocks near multiyear lows can be advantageous for long-term investors, especially if the dividend remains intact as the stock price declines [1] Group 1: PepsiCo - PepsiCo has seen a 25% decline in value over the past 12 months, with first-quarter sales down approximately 2% [4] - Despite challenges, PepsiCo generated over 1% organic growth in the first quarter, and the decline in sales was significantly impacted by foreign exchange [5] - The company produced $7.3 billion in free cash flow over the last 12 months, matching its dividend payments, indicating that the dividend payout is not in imminent danger [6] Group 2: UnitedHealth Group - UnitedHealth Group is trading near a four-year low due to rising costs affecting its bottom line [7] - The company experienced a 4% year-over-year increase in adjusted earnings per share in the first quarter, despite challenges in its Medicare Advantage business [8] - With a modest payout ratio of 35%, UnitedHealth is not at serious risk of cutting its dividend, and it trades at a P/E multiple of 17, below its five-year average of nearly 20 [9] Group 3: United Parcel Service (UPS) - UPS is trading near its 52-week low, with revenue for the first quarter totaling $21.5 billion, slightly down from $21.7 billion in the previous year [10][11] - The company plans to cut 20,000 jobs and reduce deliveries involving Amazon to improve margins amid economic challenges [11] - UPS's diluted earnings per share were $1.40, below its quarterly dividend of $1.64, but the company has a plan to improve profitability, making it a potential contrarian buy [12][13]