Right now could be a great time to consider investing in dividend stocks. Some quality businesses have shares trading at low prices, providing an opportunity for investors.
One such company is Diageo (LSE:DGE), which is currently just above its 52-week low with a dividend yield approaching 3%. The premium spirits business of Diageo has been facing challenges due to falling demand in regions like the US, Latin America, and the Caribbean. However, there is a long-term trend towards premium drinks, and the stock is expected to recover as demand returns.
Starbucks (NASDAQ:SBUX) is another company experiencing low demand, with revenues declining by 1.8% in the first three months of 2024. The worst-hit region was China, where sales fell by 8%, impacting the company’s future growth plans. Despite a price-to-earnings (P/E) ratio of 22, there is potential for earnings to rise as the business recovers from the downturn.
Both Diageo and Starbucks are trading at attractive prices with high dividend yields, making them good options for investors looking for passive income. It is essential to do thorough research before investing, as market conditions can change quickly. Consider seizing the opportunity now to benefit from potential future growth in these beaten-down dividend stocks.