If you're buying a dividend stock that's trading near its low for the year, it stands to reason that the yield is also higher than it would normally be. If the stock recovers from those lows, those who buy in end up profiting from an increase in share price as well as locking in the better-than-typical dividend yield.

That suggests there is a double incentive to buy quality dividend stocks that are trading near their 52-week lows. The tough part is ensuring you have found a quality stock. Three that qualify are Johnson Johnson (NYSE: JNJ), Paychex (NASDAQ: PAYX), and Keurig Dr Pepper (NASDAQ: KDP). Let's learn a bit more about these three dividend stocks trading near 52-week lows and how a $5,000 investment can help you generate a decent return along with quarterly income.

Johnson Johnson stock just got a whole lot better now that it has spun off its consumer health business into Kenvue. While the spinoff won't fully erase the legal issues J faces relating to baby powder products, it does at least allow the company focus on the faster-growing segments of its business, such as medical devices and pharmaceuticals.

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Source Fool.com