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The S&P 500 Index is off to a rough start to 2025, with the major index down 7.5% year-to-date. Many individual stocks are down even more, which could present buying opportunities for value investors.

Indeed, many dividend stocks are trading near 52-week lows, which has elevated their dividend yields to high levels.

The following 3 undervalued hidden gems could be buying opportunities near their 52-week lows.

Sysco Corp. (SYY)

Sysco Corporation is the largest wholesale food distributor in the United States. The company serves 600,000 locations with food delivery, including restaurants, hospitals, schools, hotels, and other facilities.

On January 28th, 2025, Sysco reported second-quarter results for Fiscal Year (FY) 2025. The company reported a 4.5% increase in sales for the second quarter of fiscal year 2025, reaching $20.2 billion.

U.S. Foodservice volume grew by 1.4%, while gross profit rose 3.9% to $3.7 billion. Operating income increased 1.7% to $712 million, with adjusted operating income growing 5.1% to $783 million. Earnings per share (EPS) remained at $0.82, while adjusted EPS grew 4.5% to $0.93.

U.S. Foodservice sales increased 4.1% to $14.0 billion, though local case volume declined slightly. Meanwhile, the International Foodservice segment saw a 3.6% increase in sales to $3.7 billion, with gross margin improving by 71 basis points to 20.4%. The company attributed its performance to effective cost management, volume growth, and strategic investments in sales professionals and specialty offerings.

The company reaffirmed its full-year guidance, projecting sales growth of 4%-5% and adjusted EPS growth of 6%-7%.

Sysco has an economic moat due to its large-scale and entrenched distribution infrastructure, which gives it a cost advantage over most competitors. This moat is evidenced by the company's double-digit returns on invested capital every year, much higher than its weighted average capital cost.

It's also quite defensive; the company was almost unfazed by the previous recession and recovered from a mild earnings dip within one year. Thanks to this stability, Sysco has raised its dividend every year since it went public, and we expect it to continue to grow in the years to come.

Pfizer Inc. (PFE)

Pfizer Inc. is a global pharmaceutical company focusing on prescription drugs and vaccines. Pfizer formed the GSK Consumer Healthcare Joint Venture in 2019 with GlaxoSmithKline plc, which includes its over-the-counter business.

Pfizer owns 32% of the JV, but is exiting the company, now known as Haleon. Pfizer spun off its Upjohn segment and merged it with Mylan forming Viatris for its off patent, branded and generic medicines in 2020.

Pfizer’s top products are Eliquis, Ibrance, Prevnar family, Vyndaqel family, Abrysvo, Xeljanz, and Comirnaty.

Pfizer’s current product line is expected to produce top line and bottom-line growth because of significant R&D and acquisitions.

Pfizer reported solid Q4 2024 results on February 4th, 2025. Company-wide revenue grew 21% operationally and adjusted diluted earnings per share climbed to $0.63 versus $0.10 on a year-over-year basis because of stabilizing COVID-19 related sales, growing revenue from the existing portfolio, and lower expenses.

Global Biopharmaceuticals sales gained 22% to $17,413M from $14,186M led by gains in Primary Care (+27%), Specialty Care (+12%), and Oncology (+27%). Pfizer Centerone saw 11% lower sales to $325M, while Ignite revenue was $26M.

Of the top selling drugs, sales increased for Eliquis (+14%), Prevnar (-4%), Plaxlovid (flat), Cominraty (-37%), Vyndaqel/ Vyndamax (+61%), Ibrance (-2%), and Xtandi (+24).

PFE has increased its dividend for 16 consecutive years and shares are currently yielding 6.9%.

Nordson Corporation (NDSN)

Nordson was founded in 1954 in Amherst, Ohio by brothers Eric and Evan Nord, but the company can trace its roots back to 1909 with the U.S. Automatic Company.

Today the company has operations in over 35 countries and engineers, manufactures, and markets products used for dispensing adhesives, coatings, sealants, biomaterials, plastics, and other materials, with applications ranging from diapers and straws to cell phones and aerospace.

On February 19th, 2025, Nordson reported first quarter results for the period ending January 31, 2025. For the quarter, the company reported sales of $615 million, 3% lower compared to $633 million in Q1 2024, which was driven by organic sales decrease of 9%, partly offset by a positive acquisition impact. Medical and Fluid Solutions saw sales increase by 21%, while the Industrial Precision Solutions and Advanced Technology Solutions segments both had sales decreases of 11%.

The company generated adjusted earnings per share of $2.06, a 7% decrease compared to the same prior year period. The company’s backlog equaled $670 million at the end of the first quarter. Nordson maintained its FY 2025 outlook, expecting sales of $2.75 billion to $2.87 billion and adjusted EPS of $9.70 to $10.50.

From FY 2015 through FY 2024, Nordson grew earnings-per-share by a solid 12% annually. Areas for future growth include increased use of disposable products, productivity investments, mobile computing, increased medical device usage and lightweight / lean manufacturing of vehicles, all of which benefit from the company’s adhesive and coating segments.

Additionally, with the acquisition of CyberOptics Corporation and Atrion, Nordson has expanded its position in the semiconductor and electronics industries, and proprietary medical products.

NDSN has increased its dividend for 61 consecutive years.

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