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Buy These 6 Down-and-Out Stocks for a ‘Dogs of the Dow' Rebound in 2026

It’s the final day of 2025. As I write this pre-market, the S&P 500 is up 17.3% and on track to book its third consecutive year of positive annual returns. 

Yesterday, I read in Bloomberg that all 21 analysts it surveyed believe the index will be up in 2026, delivering a fourth consecutive year of gains. It also noted that since the index’s October 2022 low, it has risen 90%.

 

When analysts are this optimistic, I get concerned. While analysts are generally bullish, this level of agreement is rare. What could possibly go wrong?

The “Dogs of the Dow” strategy, which selects the 10 highest-yielding stocks from the Dow Jones Industrial Average at the beginning of each year, was up 17.8% through Dec. 26. 

On Wednesdays, I typically discuss a stock or stocks that have hit a new 52-week high or low in the prior day’s trading.

To finish out the year, I thought I’d take a page out of the Dogs of the Dow strategy, using new 52-week lows as my guiding criteria for picking winners in 2026.

In 2025, 105 stocks had at least 30 new 52-week lows and a market cap of over $1 billion. Of those, 30 have dividend yields of 2.75% or higher. 

Here are the five highest-yielding stocks to buy for 2026 based on the criteria above. 

Happy New Year!

Alexandra Real Estate Equities (ARE)

Alexandra Real Estate Equities (ARE) has hit 35 new 52-week lows in the past 12 months. Its stock yields 10.7%.

The REIT (real estate investment trust) specializes in office and lab space for the life sciences, agtech, and technology industries in U.S. cities such as Boston, San Francisco, and San Diego. As of Sept. 30, it had 39.2 million square feet of leasable space.

Many of its tenants are biotech companies. The industry is in the fifth year of a downturn post-COVID. As a result, it is disposing of non-core real estate outside its major megacampuses. That will not only strengthen its balance sheet but enable it to focus on fewer, higher-quality assets.

ARE stock is down 49% in 2025. 

Flowers Foods (FLO)

Flowers Foods (FLO) has hit 68 new 52-week lows in the past 12 months. Its stock yields 9.1%.

The Georgia-based maker of baked goods has done so since 1919. Today, its brands include Nature’s Own, Dave’s Killer Bread, Wonder, and Tastykake. Its 10,200 employees operate 44 bakeries across 19 states. In 2024, its sales were $5.1 billion.

That’s the good news. The bad news is that organic sales are shrinking. Excluding its $800 million Simple Mills acquisition earlier this year, 2025 sales should decline by nearly 1% to $5.06 billion. 

Its shares are down 66% since hitting an all-time high of $30.16 in November 2022. While I’m not expecting miracles, the stock appears oversold.  

Robert Half (RHI)

Robert Half (RHI) has hit 52 new 52-week lows in the past 12 months. Its stock yields 8.6%.

The California-based staffing business has been around for 77 years. It knows a thing or two about finding and hiring staff. Unfortunately, with the unemployment rate hitting a four-year high of 4.6% in November, the number of companies hiring and the number of people looking for work are falling.

When employment hiring is frozen, as it appears today, it’s hard for Robert Half to make money. In Q3 2025, it earned $43.0 million on $1.35 billion in revenue, a 3.2% net margin. The net margin for the trailing 12 months ended Sept. 30 was 2.8%, the lowest margin in the past decade.

Its share price can’t stay this low indefinitely. Down 61% in 2025, a rebound is in the cards.  

Alight (ALIT)

Alight (ALIT) has hit 52 new 52-week lows in the past 12 months. Its stock yields 8.1%.

The company administers employee benefits and provides payroll and financial wellness services for more than 35 million employees at major companies through its Alight Worklife platform. 

In much the same way, companies aren’t eager to hire, and the economic uncertainty of tariffs and other headwinds has businesses hoarding their cash for AI-related investments. When corporate budgets are tight, finding new clients and boosting revenue from existing clients is virtually impossible. 

The company has effectively pivoted to AI initiatives that will not only improve Alight’s efficiency but also its clients' efficiency. 

With $243 million in free cash flow in the trailing 12 months ended Sept. 30, it has a free cash flow yield of 8.2%. Anything above 8% is value territory. 

Conagra Brands (CAG)

Conagra Brands (CAG) has hit 40 new 52-week lows in the past 12 months. Its stock yields 8.0%.

In September, before it reported its Q3 2025 results on Oct. 1, I pondered whether Conagra stock was a value play or a value trap. I wasn’t too enthusiastic, stating, “You probably won't get rich off owning Conagra stock unless something drastically positive happens in the next 3-5 years,” I wrote on Sept. 24. 

At the time, its shares were trading around $18.30. Three months later, CAG stock is below $17.45. The Barchart Technical Opinion is a Strong Sell. As I suggested in September, doing a Married Put -- you buy 100 shares of CAG and one ATM (at-the-money) put at the same time -- protects your downside while getting in at a share price that’s over 50% lower than two years ago. 

Americold Realty Trust (COLD)

Americold Realty Trust (COLD) has hit 47 new 52-week lows in the past 12 months. Its stock yields 6.9%.

As recently as April 2021, the owner of temperature-controlled warehouses’ share price traded above $40. They are now below the January 2018 IPO price of $16. At the time, it had $1.54 billion in revenue and $255 million in EBITDA (earnings before interest, taxes, depreciation and amortization); today, its trailing 12-month revenue is $2.61 billion, with $546 million in EBITDA. 

While revenues and EBITDA have increased by 69% and 114%, respectively, over the past eight years, its share price has declined. What gives? Its net debt has more than doubled to $4.1 billion. That’s 6.7 times its 12-month EBITDA through Q3 2025. 

The low share price has attracted the attention of activist investor Ancora Group Holdings. It is pushing Americold to sell its European operations to focus on North America. On Dec. 22, Americold announced two Ancora-picked directors would join the board. 

Private equity firms have approached the company about buying the European operations, which sources say are worth $1.5 billion. 

At the very least, its shares have to be worth $16, its IPO price.   

Buckle (BKE)

This last one is a special addition. You’ll note that Buckle (BKE) has hit 32 new 52-week lows over the past 12 months, but its stock yields only 2.6%, below my 2.75% cutoff. 

I’ve followed the Nebraska-based retailer for many years. It won’t be confused for Abercrombie & Fitch (ANF) or Aritzia (ATZAF), two high-flying retail growth stocks. Its annual results are relatively predictable with same-store sales growth between 2% and 5% most quarters. 

On Dec. 9, Buckle announced a $3.00 per share special cash dividend to be paid to shareholders of record at the close of business on January 15, 2026. That’s in addition to the $0.35 quarterly dividend it has paid since December 2021. Since the beginning of 2021, Buckle has paid special dividends of $5.65, $2.65, $2.50, $2.50, and $ 3.00 per share.

Including the $3.00 special dividend in January, the company will pay $4.40 per share in dividends in 2026. At a share price of $53.76 as I write this, it yields 8.2%.

It’s the gift that keeps on giving.    


On the date of publication, Will Ashworth did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

 

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