Situations Arose where Select Dividend Shares Decreased by 1% to 20% in 2024. Here's the Justification Behind Why They're Overlooked Values, Worth Investing in 2025.
2024 was a remarkable year for major indexes like the S&P 500 and Nasdaq Composite. However, not all stocks participated in this bullish trend. Kraft Heinz (KHC 0.97%), Kenvue (KVUE -1.37%), and Middlesex Water (MSEX 1.51%) ended the year on a sour note, leading to an attractive yield for income seekers. Investing in equal shares of these high-yield dividend stocks boasts an average yield of 4%!
Let's delve into why these stocks are worth revisiting, particularly for value-oriented investors.
Kraft Heinz: A Bargain at Multiyear Lows
Kraft Heinz has struggled in recent years, with a 17% plunge in 2024 and a lackluster start to 2025. Despite the company's revenue decline and stagnant growth, it continues to generate substantial earnings to support its dividend and share repurchases. With a forward price-to-earnings ratio of just 9.6, Kraft Heinz provides a compelling opportunity for contrarian investors.
A Classic Value Stock in a Household Name
Kenvue, the Johnson & Johnson spin-off, has had a rocky start as an independent firm. Its skin health and beauty segment has underperformed, resulting in a discounted valuation and nearly 4% dividend yield. However, its self-care and essential health segments are growing steadily, indicating Kenvue's classic value stock attributes.
Middlesex Water: A Regal Approach to Boost Passive Income
Although the S&P 500 rose over 23% in 2024, Middlesex Water failed to follow suit, dropping almost 20%. Yet, this 125-year old utility company has a remarkable 52-year streak of increasing its dividends – a testament to its stability and reliability. Middlesex Water's dividend yield is attractive for income-focused investors.
Investors seeking value-oriented opportunities should find these high-yield dividend stocks enticing, despite their individual challenges. As with all investments, it's essential to conduct thorough research and consider risk factors before making a decision.
After experiencing a 17% plunge in 2024, Kraft Heinz's financial situation may seem dire, but its substantial earnings continue to support its dividend and share repurchases, making it an attractive option for investors seeking value and yield.
Despite challenges in its skin health and beauty segment, Kenvue's self-care and essential health segments are showing growth, indicating its potential as a classic value stock with an appealing nearly 4% dividend yield.
