Got $5,000? These 3 Dividend Stocks Are Trading Near Their 52-Week Lows

As of Monday, the S&P 500 was down about 8% since the start of the year. It's not in bear market territory, and it may get out of correction territory if it keeps rallying, but 2025 is nonetheless proving to be a challenging year for stocks.

And with tariffs still in place and potentially weighing on future earnings numbers, the worst may still be to come.

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But rather than trying to time the market, a good idea could be to start deploying some capital. If you can afford to invest $5,000 and want some excellent dividend stocks for your portfolio, then I have three great options for you to consider: Bank of America (NYSE: BAC), Procter & Gamble (NYSE: PG), and Home Depot (NYSE: HD).

The all pay more than the S&P 500 average yield of 1.5% and have recently traded near their 52-week lows. Here's why they make great long-term investments.

Bank of America

Entering trading on Monday, shares of Bank of America were down 16% year to date. The stock offers investors a great way to benefit from the economy's long-term growth. Unfortunately, with investor sentiment not very optimistic these days and concerns growing about a possible recession, the bank's stock has been nose-diving this year.

But it still is a compelling place to invest $5,000. For one, it pays a dividend that yields 2.9%; you could collect approximately $145 in annual dividends on that size of an investment, just from holding the stock. It has a low payout ratio around one-third of its earnings, which means that barring a significant downturn in the economy, the dividend should be safe for the foreseeable future.

However, even if the economy struggles this year, chances are this top bank stock will recover in the long haul, which is why investors shouldn't be too concerned about it. Currently, it's trading right around its book value and could be a steal of a deal.

Procter & Gamble

If you prefer a top consumer goods stock, then Procter & Gamble could be the optimal choice for your portfolio. The company has a massive portfolio of consumer brands, including Gillette, Swiffer, Pampers, Vicks, and many others. You probably have something in your home that falls under the Procter & Gamble umbrella.

Should the economy fall into a recession this year, there will likely still be strong demand for the company's products. Procter & Gamble has been a slow-growing company over the years, but the main attraction is its stability; it has posted more than $14 billion in profit in each of the past four fiscal years (its year ends in June).

The 2.5% yield you'll collect from the stock isn't as high as Bank of America's, but the big payoff from Procter & Gamble is over the long haul: It's a Dividend King. Shares are up a modest 1% this year and make an attractive investment to load up on at 23 times its future profits, based on analyst expectations.

Home Depot

If you want a bit more growth potential than Procter & Gamble but still want long-term stability, Home Depot may be the best dividend stock for you. It pays 2.6% in dividends so you'll get a bit more cash from its payout.

The business relies more heavily on discretionary spending, but there's also an element of necessity involved; people can only put off some home repairs for so long before they lead to much bigger problems.

Home Depot's strong brand presence in the home repair market is why it can be an appealing long-term buy, especially if you want to benefit from the growth in the housing market. A survey from insurance company Hippo a few years ago found that more than three-quarters of homeowners had to spend money on an unexpected repair within the first year of purchasing their home.

It's that kind of figure that demonstrates why Home Depot stock can be an excellent way to indirectly invest in the housing market. A resurgence in homebuying could translate into a future growth catalyst for Home Depot. At 24 times forward earnings, this is a reasonably priced stock to hang on to for the long haul.

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Bank of America is an advertising partner of Motley Fool Money. David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bank of America and Home Depot. The Motley Fool has a disclosure policy.