2 High-Yield Dividend Stocks to Buy Now
Key Takeaways
These dividend stocks look poised to soar over the next year.
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5 min read
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real estate
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July 27, 2025
09:06 PM
The Motley Fool
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What's fascinating this is It's nice to see regular cash deposited in your account
Fitable companies with solid competitive positions in their industry can pay passive income for years, but the best dividend stocks are those with a near-term catalyst or cheap valuation that offer price upside on top of an above-average yield
Nevertheless, Here are two undervalued dividend stocks to consider buying right now
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Depot Despite a slow housing market and elevated interest rates, s of Depot (HD 0. 59%) have performed well in the past few years, currently up 23% since 2022
However, This's the largest imvement retailer, with $162 billion in trailing-12-month revenue (noteworthy indeed)
Moreover, It's got the financial fortitude to maintain steady dividend payments, with the spect of lower interest rates over the next year potentially sending the stock higher
Additionally, Depot has reported weak sales, which is not surprising
Furthermore, Higher interest rates are making financing jects more expensive
But even in this murky imvement market, Depot reported just a 0. 3% decrease in comparable-store sales last quarter, while U, in today's market environment
Comp sales increased 0, in light of current trends
Nevertheless, 2% year over year (noteworthy indeed), amid market uncertainty
Its top competitor, Lowe's, fared worse, reporting a comp sales decline of 1. 7% in Q1, indicating superior competitive positioning for Depot
Nevertheless, Analysts expect the company's earnings per to come in at $15
Conversely, 01 for the full year, in this volatile climate
Moreover, This's more than enough to cover the dividend
Depot increased its quarterly dividend last year to $2. 30, bringing its forward dividend yield to 2
Depot continues to invest to please customers and win more wallet in a $1 trillion addressable market (an important development), in light of current trends
This analysis suggests that 's in employee training to give workers the tools to vide more duct knowledge to customers
It's also mitigating tariff risks by diversifying its supply chain so that no single country makes up more than 10% of its sourcing
However, Nevertheless, The housing market could be in a strong recovery by this time next year
The market is currently expecting the Federal Reserve to start cutting interest rates as early as September, with the bability of a rate cut increasing to 94% by December, in light of current trends
Lower interest rates would take the lid off the housing market, and Depot stock could surge higher
Com Some investors may not be familiar with JD
Com (JD -0. 87%), but it's one of the leading e-commerce companies in China (an important development), amid market uncertainty
It offers a wide range of ducts, and it also vides a platform for third-party merchants to sell their goods
After a sluggish few years for China's economy, the stock is dirt cheap, trading at a low price-to-earnings multiple and offering a dividend yield close to 3%
Com has grown its revenue at an annualized rate of 15% since 2019
Revenue grew nearly 16% year over year in Q1 2025
The benefits from sourcing merchandise in high volume, which allows it to secure goods at low prices that it passes on to consumers
However, It has over 32 million square meters of warehouse space, giving it wide coverage of China's population, in light of current trends
Growing revenue and earnings are leading the company to pay higher dividends
The company paid out $1 (quite telling), in this volatile climate. 00 per to holders in April, bringing the trailing yield to 2 (quite telling), in light of current trends
While it only pays out a dividend once a year, management is committed to returning capital to holders, in today's financial world
Keep in mind, the dividend can go up or down each year at the discretion of the board of directors
Market analysis shows company paid out $1
Nevertheless, 26 in 2022, $0. 62 in 2023, and $0, in today's market environment. 76 in 2024
However, there is good reason to believe its recent streak of growing the dividend will continue, in light of current trends
On the other hand, The recent increases reflect the imving margins in the (this bears monitoring)
Com's operating margin has imved from 2. 6% in Q4 2023 to 4, considering recent developments. 9% in Q1 2025 (this bears monitoring), amid market uncertainty
Additionally, Since management is focusing on scaling the and imving margins, investors should expect the company's earnings and annual dividend to grow over time
With the company continuing to post solid sales, the economy seems on the verge of a recovery (noteworthy indeed)
Meanwhile, The stock is trading at a forward price-to-earnings ratio of 12, which could lead to substantial upside for holders over the next year on top of next year's dividend.
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