3 High-Yields at 52-Week Lows: Buy, Sell, or Hold

High-quality dividend stocks trading at 52-week lows offer opportunities for investors that include value and yield. The values tend to be better than average, and the yields higher; the only question is how sustainable the payments are and whether the stock price can go any lower. This is a look at three high-quality dividend payers, what’s got their stock prices down, and whether they are good to buy, sell, or hold in 2025. 

United Parcel Service Can’t Get Much Lower]

United Parcel Service’s (NYSE: UPS) stock price isn’t just at a 52-week low; it is at a five-year low that dates to the peak of COVID-19 fear. At this level, UPS seemingly can’t move any lower, and there are reasons to believe a rebound is about to begin. The decline in share price is tied to a volume decline and its impact on the business and outlook; results from competitor FedEx reveal that the core US market reverted to growth in Q3. The longer-term outlook is also positive, expecting this company to revert to growth in F2026 if not in 2025. 

The dividend is attractive at these levels. The stock trades at only 12X its earnings forecast and yields nearly 8%. That is almost double the yield on a ten-year Treasury note and is compounded by a robust outlook for share price increase. A multiyear revenue and earnings rebound can sustain a multiyear stock price rally that takes this market back to record highs. The risks lie in the payout ratio and distribution growth rate, which are high. The risk is that the distribution growth rate will subside substantially until earnings growth offsets the impact. 

The Q3 earnings report is a potential catalyst. When it issued the Q2 results, the company pulled its full-year outlook, leaving the market in limbo. The likely outcome is that the results will align with FedEx, revealing unexpected strength in the core market that strengthens the outlook and whets investor appetite. 

Diageo, Poised for a Rebound in 2026

Diageo’s (NYSE: DEO) share price is similarly positioned, except that it set a new low and is now exhibiting signs of a bottom at the critical support target. The indications of a stock price bottom are reasonable, the company is expected to revert to growth soon, and other catalysts are in the works.

A new CEO and plans to reinvigorate the business and strengthen shareholder value will be announced soon. The critical details will include the debt and debt reduction, which is sorely needed.

Diageo’s dividend is attractive. The yield was near 4.25% in late September, and the payout ratio implies safety at 60% of this year’s earnings forecast and earnings growth forecasted for next year. The only drawback is that quarterly distributions tend to be erratic due to the structuring of payments, but a tendency toward annualized distribution increases offsets this. 

ONEOK Pulls Back to Critical Support

Energy middleman ONEOK’s (NYSE: OKE) stock price returned to critical support, setting a 1-year low in September. The pullback is due to investor concerns that it will have trouble digesting acquisitions, but the results prove otherwise. Results reflect a strong cash-generating position and the ability to sustain its dividend while reducing the acquisition-related debt. This has the stock set up to rebound robustly in future quarters. 

The dividend is substantial with a 5.75% yield. The payout ratio is a red flag at 80% but this midstream energy operator, like its competitors, is a cash flow machine focused on the dividend. The growth forecast includes a double-digit EPS CAGR, which is likely to be low, underpinning an outlook for distribution increases. The company may not increase the payment every year, but it has increased the payment more years than not, and there is no record of a decrease.

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