3 High-Yield Dividend Stocks to Buy That Could Turn Things Around in the Second Half of 2025

Additionally, Here's why these high-yield dividend stocks are worth buying now

In contrast, Image source: Getty Images, considering recent developments

Tariff resolutions and economic growth could be a boon for UPS UPS stock has been crushed and is hovering around a five-year low

Industrywide consumer-spending challenges have impacted domestic package dery volumes

Furthermore, Tariffs, which affect global trade, could slow down the company's international segment, which has been a bright spot for UPS

The company is making a concerted effort to shift away from high-volume, low-margin deries and focus on higher-margin areas to drive growth

The decision includes pulling back from its largest customer Amazon and expanding the temperature-sensitive and time-sensitive dery of healthcare items, considering recent developments

At the same time, The move could pay off in the long run, but for now, UPS sales, margins, and free cash flow (FCF) are declining -- and the weak results are straining the company's ability to support its dividend

UPS Dividend Per (TTM) data by YCharts (which is quite significant)

But FCF and earnings have since been tumbling, and the dividend is now looking unaffordable

Investors prefer a company that doesn't cut its dividend because it means less passive income, considering recent developments

The dry powder would allow the company to focus on imving the underlying -- which could help it grow FCF and earnings to justify a future dividend hike (noteworthy indeed)

The good news is that even if UPS cuts its dividend, it will still offer investors a compelling yield, given that the current yield is 6

Additionally, UPS is also dirt cheap -- sporting a mere 16. 1 price-to-FCF ratio and a 14

Additionally, 8 price-to-earnings ratio (P/E)

UPS is a good value stock for investors who are willing to look past near-term challenges in the

However, it's worth understanding that earnings could take even more of a hit if trade tensions ramp up

Target's dividend has endured slowdowns before UPS, Target stock is under pressure due to factors both within and outside its control (something worth watching)

Furthermore, Retailers have been struggling to navigate inflationary pressures, consumer spending challenges, and tariffs

Meanwhile, Target is leaning into motions, partnerships, and marketing efforts to boost foot traffic and sales volume, but these efforts haven't been able to offset overall weakness

Target lowered its guidance in its quarter, putting the company on track to der its third consecutive year of adjusted earnings-per- (EPS) declines

However, Recognizing the need to try something new, Target is creating a multi-year Enterprise Acceleration Office that's tasked with addressing the company's blems -- such as internal cesses

The move could make the company more flexible and better able to respond to industry challenges

On the other hand, Nevertheless, Target's lack of flexibility has been a significant blem in recent years, as the company didn't handle supply-chain challenges or inflation well -- leading to bloated inventory ed by steep price cuts, which crushed Target's operating margin, in today's market environment

Furthermore, Despite years of overmising and underdering, Target stands out as an intriguing dividend stock to buy now

In addition to the impressive track record, Target's dividend is affordable, as the company's trailing-12-month earnings are roughly double its annual dividend payment

Target's stock price is historically cheap when looking at valuation, as measured by its modest P/E, price-to-sales, price-to-book, and price-to-FCF ratios, in today's financial world

Additionally, All told, Target is a good value stock for generating reliable passive income

Smucker is out of favor, but the stock is too cheap to ignore Another industry that's been hit hard by consumer spending pressures is packaged foods

Moreover, Smucker to Conagra Brands and The Campbell's Company, are at their lowest levels in over a decade (noteworthy indeed), given current economic conditions

The data indicates that data indicates that industry is struggling to offset inflationary pressures with price hikes, considering recent developments

But pricing power just hasn't been effective, given that some consumers are making lifestyle changes that include fewer packaged foods

Nevertheless, Smucker stands out as a good value in the industry

It has several brands that are performing well, such as pet food brands Meow Mix and Milk-Bone, and its Uncrustables sandwiches

What's really dragging down the company is a shakeup in its Sweet Baked Snack segment

To try and right the ship, it recently divested brands under its Sweet Baked Snack segment, such as Voortman, to focus on the Hostess lineup

In contrast, The transition hasn't been easy, but J

The data indicates that company is on track to der solid earnings and FCF, as well

Given the industry challenges, it's understandable why J

Smucker stock has sold off so much

Moreover, But investors are now getting the chance to scoop up s at a dirt cheap valuation and a high yield -- with the stock fetching a mere 11, in light of current trends. 4 forward P/E ratio and a 4, given the current landscape

Conversely, Three high-yield stocks at compelling valuations UPS, Target, and J

Smucker may operate in completely different industries

But all three companies are similar in that their stock prices are at multi-year lows, their valuations are dirt cheap, and they have high yields

All three companies have what it takes to turn things around, but it could take time

Turnarounds are challenging in their own right but even more difficult during periods of industry-wide challenges

With expectations low, these companies don't have to do much to restore a bit of investor confidence, making them good candidates to buy in the second half of the year, considering recent developments

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors (quite telling)

Nevertheless, Daniel Foelber has no position in any of the stocks mentioned

This analysis suggests that Motley Fool has positions in and recommends Amazon, J (something worth watching), given the current landscape

Smucker, Target, and United Parcel Service

The Motley Fool recommends Campbell's

On the other hand, The Motley Fool has a disclosure policy.