Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTDavid Jagielski, CPA, The Motley FoolTue, September 8, 2026 at 11:20 AM GMT+2 4 min readDividend stocks can be great buys when they're trading near their lows. Their yields are higher than normal, and at low valuations, there may be room for them to rally. The key thing, however, is for investors to understand the risks of doing so, because not all dividend stocks are necessarily safe buys, and high yields could also raise red flags.Three dividend stocks that have been struggling and that are trading near their 52-week lows right now include PepsiCo (NASDAQ:PEP), TJX Companies (NYSE:TJX), and Nike (NYSE:NKE). Here's a look at how high their yields have gotten, and if these stocks could make for great income investments right now, or if investors are better off steering clear of them.Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »Image source: Getty Images.PepsiCoBeverage and snack giant PepsiCo currently pays investors a dividend that yields 4.3%. Over the past 12 months, the stock has fallen by more than 6%, and it's trading near its 52-week low of $133.73.The company has a solid portfolio of top brands, centered around its Pepsi beverages and Lay's potato chips. There isn't anything inherently risky with the business itself, as it has been generating solid numbers, but it may simply not be doing enough to win investors over. Through the first two quarters of the year, its revenue has grown by just 2.5% organically.While its growth may not be all that exciting, that doesn't mean the stock can't still make for an excellent dividend investment. Its yield is high, and with a payout ratio of 75%, there aren't any glaring concerns about the stock's dividend. Trading at just 18 times its trailing earnings, this can be a great dividend investment to buy right now.TJX CompaniesShares of TJX are down 14% since the beginning of the year, pushing its yield up to around 1.5%. While that isn't terribly high, it's still better than the S&P 500 average of around 1.1%.The off-price retailer has been doing well in recent quarters and posted solid 4% comparable sales growth in its most recent period, which went up until Aug. 1. It's a decent growth rate, but unfortunately, when a retail stock is trading at a rich valuation, as TJX has been, it can be vulnerable to a decline despite a good performance.Currently, the stock trades at around 25 times its trailing earnings, and earlier in the year it was north of 30 -- a high multiple to pay for this type of business. The biggest knock on TJX may simply have been its inflated valuation. While it's a good long-term buy, I'd wait for a deeper dip in its price before buying it, as it's still a bit expensive.Terms and Privacy PolicyEU DSA contactPrivacy & Cookie SettingsMore Info