2 Value Stocks With Dividend Yields Over 5% to Buy Near 52-Week Lows
The Motley Fool
by newsfeedback@fool.com (Daniel Foelber)February 22, 2026
AI-Generated Deep Dive Summary
General Mills (NYSE: GIS) dropped 7% on Feb. 17 after surprising investors with a significant cut to its full-year fiscal 2026 guidance. The company now expects organic net sales to decline by 1.5% to 2%, down from its previous forecast of a 1% decrease to a slight increase. Additionally, adjusted diluted earnings per share (EPS) are projected to fall by 16% to 20%, compared to the earlier estimate of a 10% to 15% decline. This sharp revision came just two months after General Mills reaffirmed its prior guidance when reporting its second-quarter fiscal 2026 earnings.
The unexpected downgrades have raised concerns about the company's financial trajectory, particularly in light of its recent struggles with declining sales and profitability. Investors may view this as a sign of broader challenges in the consumer goods sector, potentially impacting General Mills' ability to sustain its dividend payments, which currently yield over 5%. For those seeking passive income through high-dividend stocks, this news underscores the importance of carefully evaluating the risks associated with such investments.
Despite the gloomy outlook for General Mills, value investors may find opportunities in other undervalued dividend-paying stocks. These "out-of-favor" options often offer attractive yields and could provide long-term growth potential as market conditions improve. For readers interested in finance and investing, understanding the dynamics of high-dividend stocks—such as their stability, payout ratios, and growth prospects—is crucial for building a diversified portfolio capable of generating steady income.
The broader context highlights the appeal of value stocks during periods of market uncertainty. While high dividend yields can be tempting, they often come with higher risks, as seen in General Mills' case. Investors should weigh these risks against the potential rewards, considering factors like company fundamentals, industry trends, and macroeconomic conditions. For those focused on passive income, staying informed about such developments is key to making sound financial decisions.
In conclusion, while General Mills' latest guidance cut serves as a cautionary tale, it also signals an opportunity for discerning investors
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Originally published on The Motley Fool on 2/22/2026