Bargains or Busts? These 3 Dividend Stocks Yield Over 4% While Hitting 52-Week Lows

Dividend hunters are circling battered stocks—but are these yields sustainable or value traps?

High-Yield Contrarian Plays

Forget chasing momentum—these picks pay investors to wait for recovery. Three established names now offer dividend yields exceeding 4% while trading near their lowest points in a year. The setup screams opportunity for income-focused portfolios.

Risk-Reward Calculations

Market veterans know high yields often signal skepticism—not value. When stocks crater while maintaining payouts, Wall Street's betting the dividends get cut. But getting paid 4%+ to prove the crowd wrong? That's the contrarian dream.

Timing the Bottom

Nobody rings a bell at market turns, but dividend sustainability separates bargains from busts. Strong cash flow coverage suggests these companies can maintain payments—weak fundamentals could turn high yields into mirages.

As one fund manager quipped: 'The only thing better than a 4% yield is a 4% yield that doesn't disappear when the stock recovers 20%.' Sometimes the old-school metrics still work—even in a crypto-dominated world.

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1. United Parcel Service

Logistics company United Parcel Service, better known as UPS, pays investors an incredibly high dividend that yields 7.8%. That's far more than the S&P 500 average of 1.2%. The yield has grown so large because UPS stock is down more than 30% this year, with investors bracing for tougher economic conditions as a result of tariffs and potential trade wars.

But is the business really in bad shape? Through the first six months of the year, UPS' revenue has totaled $42.8 billion, which is down less than 2% from the $43.5 billion it reported over the same period last year.

The concern, however, is that its diluted earnings per share (EPS) came in at $2.91, which averages out to $1.46 per quarter. That's important because the company pays a quarterly dividend of $1.64 -- notably higher than its earnings. Its free cash FLOW over the trailing 12 months has also totaled $3.5 billion, coming in well below what the company has paid out in dividends ($5.4 billion).

UPS' stock looks cheap, as it trades at a price-to-earnings (P/E) multiple of less than 13. But if economic conditions continue to slow, its operations, which still look relatively stable right now, may encounter greater headwinds.

UPS can potentially be a good bargain buy in the long run, but investors should brace for short-term challenges ahead, and a dividend cut is a very real possibility. You might still collect a good dividend from UPS, but it may not remain this high for long.

2. Kimberly-Clark

Kimberly-Clark is a top consumer goods company known for also being a top dividend growth stock. It's a Dividend King, as it has raised its dividend for 53 consecutive years. Its most recent increase was announced in January, when the company said it WOULD be bumping up its payout by a little over 3%. With the increase, it's yielding close to 4.1% right now.

Known for popular consumer brands such as Huggies, Kleenex, and Scott, the company sells necessities that customers rely on every day. The company has, however, divested multiple businesses, including personal protective equipment, which has impacted its sales numbers. Quarterly revenue for the period ending June 30 totaled $4.2 billion and was down 2% year over year. But the company's organic growth rate was positive and nearly 4%.

Although Kimberly-Clark shares are down 5% this year, the business looks to be in fine shape. Its payout ratio of 68% is manageable and suggests that there are no near-term risks for its above-average dividend. The stock is near its low for the year and trades at a modest 17 times earnings. If you're a long-term investor seeking a reliable dividend, this can be a great investment to add to your portfolio today.

3. Comcast

Another high-yielding dividend comes from telecom and media company Comcast, which pays 4.2%. Its shares are down around 16% this year and its P/E multiple is just 5. It's a deeply discounted stock, as a high debt load and lackluster growth have been giving investors second thoughts about the business.

In its most recent quarter, which ended in June, sales ROSE by just 2% to $30.3 billion, while its adjusted net income fell by a similar percentage. Overall, it wasn't a dreadful performance from the business, but with it in the midst of spinning off the bulk of its cable portfolio into a new entity, Versant, investors may be taking a wait-and-see approach with the stock.

But that spinoff may be a great MOVE for the business, as filings show that Versant's top and bottom lines have been declining in recent years. Once the spinoff is complete, which should happen later this year, those business units won't be weighing down Comcast's consolidated numbers.

With the stock trading at such a low valuation, it may prove to be a steal of a deal in the future.