Even the most dependable dividend stocks can fall close to their lows. That is what makes this setup interesting. When a stock with a long history of rewarding shareholders trades near its year-to-date low, it can present a potential entry point for investors willing to look past short-term weakness. The problem? Stocks are among the only markets where, when something is “on sale”, people hesitate to buy.
And this is especially true for Dividend Kings, a small group of companies that have raised their dividends for at least 50 consecutive years. That kind of consistency doesn't make them risk-free, but it does show a level of durability that only a few public companies have maintained. And when companies like these trade at a discount, their yield, by extension, increases to a point rarely seen in a Dividend King.
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So let’s take a look at three Dividend Kings worth buying today, trading near their year-to-date lows.
How I Came Up With These Stocks
Using Barchart’s Stock Screener, I selected the following filters to get my list:
I set the filters, hit results, and got exactly three companies. I will cover them, sorted from the highest to the lowest forward annual dividend yield.
Let’s start with the first Dividend King.
Pepsico Inc (PEP)
PepsiCo is one of the world’s largest food and beverage companies, producing popular brands across soft drinks, sports drinks, snacks, and convenience foods. While not as large as its biggest competitor, Coca-Cola, in terms of market cap, PepsiCo’s business is more diversified across beverages and snacks, making it a more attractive choice for those seeking a safer long-term investment.
Right now, PepsiCo stock is trading ~7% above its YTD low, while the 14-day RSI is at 35. The company pays $5.92 per share per year, translating to a forward yield of 4%. And just this May, management announced a dividend bump, marking its 54th consecutive year of increases.
A consensus of 22 analysts rates PepsiCo stock a “Moderate Buy,” with a high target price that suggests as much as 34% potential upside.
Abbott Laboratories (ABT)
The next stock on the list is Abbott Laboratories, again, one of the largest and most diversified healthcare companies in the world. That’s another running theme for this list: all the companies are at the top of their respective fields.
Abbott is known for developing and manufacturing medical devices, diagnostics, nutritional products, and established pharmaceuticals, and today its portfolio includes the FreeStyle Libre diabetes monitoring platform, rapid diagnostic tests, and nutritional brands used by consumers and healthcare providers globally.
ABT stock has not had the best year; it’s down 34% over the past 12 months, and is trading 6% above its YTD low. The downtrend stems from a lower 2026 adjusted EPS guidance following the acquisition of Exact Sciences. 14-day RSI, meanwhile, is just below 40.
Still, if you believe in Abbott, this might be an attractive entry price. The company pays $2.52 per share annually, which translates to a forward yield of nearly 2.9%. It has also increased dividends for 54 straight years.
To top it off, Wall Street’s still bullish on the stock, rating it a “Strong Buy,” with mean-to-high target prices suggesting between 37% and 65% potential upside.
Lowe’s Companies (LOW)
Lowe’s Companies is one of the largest home improvement retailers in the United States, selling the tools, appliances, and building materials people use for home repairs and renovation projects. It serves both everyday homeowners and professional customers, with its Pro business recently boosted by an AI-powered Material Lists feature for faster quoting.
LOW stock trades around 2% above its YTD low with an RSI of 32. Like the other Dividend Kings on this list, it hasn’t had the strongest start to the year, which may present a good entry point.
In terms of dividends, Lowe has paid increasing dividends for more than 50 years. At the time of writing, it pays $4.80 per share, translating to a yield of around 2.2%.
Meanwhile, a consensus among 29 analysts rates the stock a “Moderate Buy" while its mean-to-high target prices suggest between 24% and 41% upside over the next year.
Final thoughts
A highly consistent, dependable, and reliable stock does not always have to be expensive. A common misconception is that Dividend Kings rarely go cheap because of their stable long-term performance.
But that’s not necessarily true.
Like any other investment, Dividend Kings can also be purchased at a discount. You just have to wait and find them at the right setup.
These three stocks offer an opportunity for long-term investors looking for stable income and quality businesses. While past performance does not guarantee a secure future, their current setup and strong background make them solid candidates for investors looking to add to their portfolios.
On the date of publication, Rick Orford did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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