Highly-Ranked Income Stocks to Buy on the Dip

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With markets sputtering over the last few days investors may be eying stocks to buy on the dip and several top-rated Zacks stocks are worthy of consideration.

Even better, a few of these stocks are very viable investments for income seekers and currently sport a Zacks Rank #1 (Strong Buy). With representation from a variety of sectors and dividend yields over 5% here are four intriguing stocks to consider.  

Dorian LPG (LPG)

One of the most enticing stocks in the transportation sector is Dorian LPG as the company's lucrative profitability suggests it should be able to sustain its sizable 7.32% annual dividend yield in a cyclical industry.

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The liquified petroleum gas shipping company's annual earnings are expected to soar 73% this year to $7.31 per share versus $4.22 a share in 2023. More reassuring is that FY25 EPS is projected to expand another 18%.

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PLDT PHI

PLDT is an intriguing foreign wireless provider in the Zacks Computer and Technology Sector. Operating in the Philippines, the risk to reward looks favorable to invest in PLDT due to the company’s attractive valuation which makes its 5.55% annual dividend yield more appealing. Plus, PLDT is expected to round out its fiscal 2023 with EPS up 4% to $2.72 a share and FY24 EPS is projected to expand another 5%.

Furthermore, PLDT’s stock is starting to look undervalued at 7.8X forward earnings and has increased its dividend seven times in the last five years. More intriguing, PLDT’s current payout ratio is still below 50% indicating more dividend hikes could be in store.

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Ternium TX

In regards to steel producers, Ternium is an exciting pick in the basic materials sector as a leading producer of flat and long steel products throughout Latin America. Ternium’s attractive valuation also bolsters its 5.45% annual dividend yield.

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Ternium’s stock trades at just 5X forward earnings with a robust bottom line despite EPS projected to fall -13% to $7.84 a share as the company wraps up its FY23. Still, FY24 earnings are expected to stabilize and rise 2% and Ternium’s 26.41% annualized dividend growth over the last five years is nothing to sneeze at.

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TC Energy TRP

We’ll round out the list with a Zacks Oils & Energy sector stock in TC Energy. Primarily focused on natural gas transmission, TC Energy is a premier infrastructure provider in North America with a 7.12% annual dividend yield.