These 2 High-Yielding Dividend Stocks are Near Their 52-Week Lows

These dividend stocks offer yields far higher than we’ve seen in recent years, giving you practically double the dividend income.

Amy Legate-Wolfe

Author Bio

Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Her work can also be found at Canada's National Observer, where she writes on the business side of climate action. Before joining Motley Fool Canada, Amy wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband.

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Favorite Investment Quote

“October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published November 18, 2022 4:00 pm EST

Plenty of dividend stocks are trading downwards right now, and some of the biggest yields are being offered at 52-week lows. But when it comes to the best investment as a long-term option, these are the two high-yield dividend stocks I’d pick up today.

Algonquin

Algonquin Power & Utilities (TSX: AQN) continues to trade at or near 52-week lows. Shares have been driven down 41% in the last year, mainly from two issues. The first was the crash across the utility sector in the last month when investors took their gains for the year. However, Algonquin stock pushed lower after earnings came out.

Management called the quarter “challenging,” with decreases in performance across the board. Adjusted net earnings were down 25%, impacted by higher interest expenses, with lower year-over-year recognition of investment tax credits. However, there was an increase of 10% in adjusted earnings before interest, taxes, depreciation and amortization. (EBITDA).

This looks to be a period of poor performance that won’t last long, especially considering the utilities sector is such a stable one. Even so, it’s the largest drop in share price we’ve seen since the pandemic, and in fact AQN stock trades lower than even those levels.

However, this does mean that you can pick up Algonquin stock with an incredible dividend yield at 9.22%! So that’s certainly something to consider with share prices this low, though still up 137% in the last decade.

NorthWest REITs

Another of the strong dividend stocks that investors can consider at 52-week lows is NorthWest Healthcare Properties REIT (TSX:NWH.UN). Shares are down 22% year to date, though up 99% since coming on the market in 2017. And honestly, this could be an opportunity you don’t want to miss out on.

NorthWest is one of the dividend stocks that trades in an essential services sector. The REIT has built a stable portfolio by investing in healthcare properties around the world. While it hasn’t increased its dividend since coming on the market, that’s because it continues to use its cash to invest in more properties. It now offers everything from office buildings to hospitals, with an average lease agreement of 14.1 years!

So not only can you get a deal at 52-week lows, but with a dividend yield at 7.42% as of writing. All while trading at just 5.9 times earnings.

Foolish takeaway

Long-term investing has long been proven to be the best way to invest. That’s why dividends can be a strong choice, as you can use the dividends to reinvest. And while you’re buying at ultra-low prices, it means you’ll be locking up higher dividend income that will last you decades.

Need proof? At 52-week highs, a $5,000 investment would have brought in $277 for NorthWest and $243 for Algonquin. Today, you can pick up NorthWest with the same investment and lock in dividends of $391, and $490 for Algonquin. That’s almost double the dividends at these low levels.