Top 20 High Dividend Stocks To Buy According To Analysts
In this article, we discuss top 20 high dividend stocks to buy according to analysts. You can skip our detailed analysis of dividend stocks and their performance over the years, and go directly to read Top 5 High Dividend Stocks To Buy According To Analysts.
Dividend stocks have been on investors’ radars for quite some time now because of their ability to generate stable and regular income, lower risk, and tax advantages. Companies in the US also registered investors’ inclination toward dividend equities and steadily boosted their payouts over the years. According to a report by McKinsey & Company, US companies returned 78% of their net income on average in dividends and share repurchases between 1995 and 2021, up from 60% on average between 1965 to 2008. This has boosted investors’ confidence, who are increasingly loading up on dividend stocks, especially during periods of market downturns.
High inflationary periods have previously been beneficial for dividend equities because they have the potential to offer higher yields. This is more appealing for investors seeking income that can keep up with inflation. In our article titled 25 Things Every Dividend Investor Should Know, we reported that dividends accounted for 54% of the market’s returns during decades of high inflation. The report also mentioned that during the 1940s, 1960s, and 1970s, dividends represented 67%, 44%, and 73% of the market’s returns, respectively. During these decades, inflation averaged above 5% with total returns averaging below 10%.
When investing in dividend stocks, investors also pay attention to dividend yields as they indicate the amount of income an investor can expect to receive from a dividend-paying stock concerning its price. High dividend-yielding stocks are often considered risky investments because they signal financial distress or underlying problems within a company. However, overall financial health and a solid balance sheet of the respective company can mitigate the risks associated with high yields. Altria Group, Inc. (NYSE:MO), Verizon Communications Inc. (NYSE:VZ), and British American Tobacco p.l.c. (NYSE:BTI) have above-average dividend yields but also have strong dividend histories. For safe investment purposes, investors should focus on dividend growth streaks along with dividend yields.
The S&P High Yield Dividend Aristocrats, which tracks the performance of companies with over 20 years of consistent dividend growth and has an average dividend yield of 3.5%, delivered a total return of 590.3% from December 1999 to June 2019, compared with a 215.2% return of the S&P Composite 1500, Insider Monkey reported.
Photo by Ruben Sukatendel on Unsplash
Our Methodology:
For this list, we used the Finviz stock screener to identify dividend stocks with yields above 6%, as of May 4. From the resultant list, we shortlisted stocks with over 20% upside potential based on their current share price and their average price targets. The stocks are ranked in ascending order of the upside potential as of May 4.
Top 20 High Dividend Stocks To Buy According To Analysts
20. Camping World Holdings, Inc. (NYSE:CWH)
Upside Potential as of May 1: 20.3%
Average Price Target Based on Analyst Ratings: $28.2
Dividend Yield as of May 4: 10.65%
Camping World Holdings, Inc. (NYSE:CWH) is an Illinois-based retail company that mainly sells recreational vehicles. In April, KeyBanc transitioned its coverage on the stock with an Overweight rating and a $25 price target, highlighting the company's earnings potential for 2024 and beyond.
On February 28, Camping World Holdings, Inc. (NYSE:CWH) declared a quarterly dividend of $0.625 per share, which was in line with its previous dividend. The stock has a dividend yield of 10.65%, as of May 4. The company's cash position remained strong in the first quarter of 2023 as it generated nearly $200 million in operating cash flow. It is among the best dividend stocks on our list.
Altria Group, Inc. (NYSE:MO), Verizon Communications Inc. (NYSE:VZ), and British American Tobacco p.l.c. (NYSE:BTI) are some other best dividend stocks with high yields to consider.
At the end of Q4 2022, 17 hedge funds tracked by Insider Monkey owned stakes in Camping World Holdings, Inc. (NYSE:CWH), down from 22 in the previous quarter. These stakes have a collective value of over $171.8 million. With over 5 million shares, Abrams Capital Management was the company's leading stakeholder in Q4.
19. Philip Morris International Inc. (NYSE:PM)
Upside Potential as of May 4: 21.3%
Average Price Target Based on Analyst Ratings: $114.3
Dividend Yield as of May 4: 5.39%
Philip Morris International Inc. (NYSE:PM) is an American multinational tobacco company that sells its products around the world. The company currently offers a quarterly dividend of $1.27 per share for a dividend yield of 5.39%, as of May 5. It is one of the best dividend stocks on our list as it has raised its dividends consistently for the past 14 years.
Stifel initiated its coverage on Philip Morris International Inc. (NYSE:PM) in April with a Buy rating and a $114 price target, calling the company one of the top ideas in the space. The firm also believes that the company offers superior growth potential.
As of the close of Q4 2022, 47 hedge funds in Insider Monkey's database owned stakes in Philip Morris International Inc. (NYSE:PM), worth over $6.2 billion collectively.
Artisan Partners mentioned Philip Morris International Inc. (NYSE:PM) in its Q4 2022 investor letter. Here is what the firm has to say:
“Our top individual contributors were Philip Morris International Inc. (NYSE:PM), EOG Resources and Merck. Despite being US-based, tobacco company PM derives all its sales from outside the US. As a result, foreign exchange impacts can be an important driver of near-term returns, and the recent weakening in the US dollar should provide a strong tailwind for earnings due to translation effects. However, our investment case is not tied to currency movements. By virtue of its globally known brands, PM is the best-in-class operator with a well-diversified business, particularly by geography. We believe its next generation heat-not-burn product IQOS should gain share as consumers continue migrating to safer tobacco delivery systems. The company is progressing toward its acquisition of Swedish Match, a Swedish tobacco and nicotine products maker, which was previously held in the portfolio. The deal is a good fit for PM as it reduces PM’s dependence on cigarettes—a category in steady decline—and accelerates the company’s transition to smokeless “reduced-risk” products (RRPs)—a category that has experienced rapid growth over the past five years. PM can also leverage its global scale to generate significant revenue synergies from these complementary product sets, as well as quickly gain access to the US market—the world’s largest market for RRPs and one where regulators have embraced RRPs and other less harmful nicotine products. Looking at PM through our margin-of-safety criteria, the business trades for an undemanding valuation and has extraordinary business economics and a strong credit profile.”
18. Coterra Energy Inc. (NYSE:CTRA)
Upside Potential as of May 4: 23.4%
Average Price Target Based on Analyst Ratings: $29.8
Dividend Yield as of May 4: 10.28%
Coterra Energy Inc. (NYSE:CTRA) is a Texas-based energy company that is engaged in the exploration of hydrocarbons. Stephens initiated its coverage on the stock in April with an Overweight rating and a $32 price target, appreciating the company's free cash flow per unit and its strong balance sheet.
Coterra Energy Inc. (NYSE:CTRA) currently pays a quarterly dividend of $0.57 per share and has a dividend yield of 10.28%, as recorded on May 4. The company generated strong cash in the first quarter of 2023. Its operating cash flow came in at nearly $1.5 billion and its free cash flow stood at $556 million.
At the end of the December quarter of 2022, 33 hedge funds tracked by Insider Monkey reported having stakes in Coterra Energy Inc. (NYSE:CTRA), the same as in the previous quarter. These stakes have a collective value of over $582 million.
ClearBridge Investments mentioned Intel Corporation (NASDAQ:INTC) in its Q3 2022 investor letter. Here is what the firm has to say:
“Also on the detractor side, Intel Corporation (NASDAQ:INTC) delivered a disappointing revenue miss and lowered full-year revenue and earnings guidance as COVID-19-driven demand for PCs abated (where Intel enjoys half its sales) and a delay in its flagship Sapphire Rapids CPU hurt its data center business. Despite these issues, we still believe Intel is an economically sensitive turnaround story with substantial upside.”
17. Kinder Morgan, Inc. (NYSE:KMI)
Upside Potential as of May 4: 24.6%
Average Price Target Based on Analyst Ratings: $20.7
Dividend Yield as of May 4: 6.79%
Kinder Morgan, Inc. (NYSE:KMI) is a North American energy infrastructure company that owns and operates oil and gas pipelines and terminals. On April 19, the company declared a 1.8% hike in its quarterly dividend to $0.2825 per share. Through this raise, the company took its dividend growth streak to six years, which makes it one of the best dividend stocks on our list. The stock has a dividend yield of 6.79%, as of May 4.
In April, Barclays maintained an Equal Weight rating on Kinder Morgan, Inc. (NYSE:KMI) with a $20 price target, highlighting the company's near-term gas production outlook for 2023.
According to Insider Monkey's database for Q4 2022, 34 hedge funds owned stakes in Kinder Morgan, Inc. (NYSE:KMI), with a total value of over $1.11 billion. Among these elite funds, Orbis Investment Management was the company’s largest stakeholder in Q4.
16. Enterprise Products Partners L.P. (NYSE:EPD)
Upside Potential as of May 4: 26.5%
Average Price Target Based on Analyst Ratings: $32.00
Dividend Yield as of May 4: 7.75%
Enterprise Products Partners L.P. (NYSE:EPD) is an American midstream natural gas and crude oil pipeline company, based in Texas. Morgan Stanley expected the sector to remain stable ahead of the earnings season. Given this, the firm lifted its price target on the stock in April to $33 and maintained an Equal Weight rating on the shares.
Enterprise Products Partners L.P. (NYSE:EPD), one of the best dividend stocks, currently offers a quarterly dividend of $0.49 per share. The company holds a 23-year streak of consistent dividend growth. The stock's dividend yield on May 4 came in at 7.75%.
At the end of Q4 2022, 24 hedge funds in Insider Monkey’s database owned stakes in Enterprise Products Partners L.P. (NYSE:EPD), growing from 21 in the previous quarter. These stakes are collectively valued at over $242.4 million.
Legacy Ridge Capital Management, LLC mentioned Enterprise Products Partners L.P. (NYSE:EPD) in its Q4 2022 investor letter. Here is what the firm has to say:
“Enterprise Products Partners L.P. (NYSE:EPD) is still owned in the fund and remains one of our largest positions, as it has been since the partnership was founded. This has not been a great investment. Shares are down about 6% since I first wrote about it. However, we have received $8.93 per share in dividends, which is about 34% of the 2018 share price. So, with dividends included we’ve made 28% cumulatively over 5-years. Still not good, but not an impairment of capital either.
15. Walgreens Boots Alliance, Inc. (NASDAQ:WBA)
Upside Potential as of May 4: 26.6%
Average Price Target Based on Analyst Ratings: $39.9
Dividend Yield as of May 4: 6.09%
An American pharmaceutical retail holding company, Walgreens Boots Alliance, Inc. (NASDAQ:WBA) is next on our list of the best dividend stocks. The company has been raising its payouts for the past 47 years and currently pays a quarterly dividend of $0.48 per share. The stock has a dividend yield of 6.09%, as recorded on May 4.
In March, Deutsche Bank kept a Buy rating on Walgreens Boots Alliance, Inc. (NASDAQ:WBA) with a $46 price target, noting the company's recent quarterly earnings. The firm also highlighted the company's maturing Health segment.
The number of hedge funds tracked by Insider Monkey owning stakes in Walgreens Boots Alliance, Inc. (NASDAQ:WBA) grew to 42 in Q4 2022, from 39 in the previous quarter. These stakes have a collective value of $1.08 billion. Citadel Investment Group was the company's leading stakeholder in Q4.
14. The Williams Companies, Inc. (NYSE:WMB)
Upside Potential as of May 4: 26.7%
Average Price Target Based on Analyst Ratings: $36.5
Dividend Yield as of May 4: 6.19%
The Williams Companies, Inc. (NYSE:WMB) specializes in natural gas processing and transportation, based in Oklahoma, US. In April, JPMorgan maintained an Overweight rating on the stock with a $35 price target, highlighting the incremental demand from liquified natural gas export.
On April 25, The Williams Companies, Inc. (NYSE:WMB) declared a quarterly dividend of $0.4475 per share, which was in line with its previous dividend. In March this year, the company declared its seventh consecutive year of dividend growth, which makes it one of the best dividend stocks on our list. The stock's dividend yield on May 4 came in at 6.19%.
As of the close of Q4 2022, 34 hedge funds tracked by Insider Monkey had stakes in The Williams Companies, Inc. (NYSE:WMB), with a collective value of over $286.6 million. With over 1.8 million shares, Polaris Capital Management was the company's leading stakeholder in Q4.
Longleaf Partners mentioned The Williams Companies, Inc. (NYSE:WMB) in its Q2 2022 investor letter. Here is what the firm has to say:
“The Williams Companies, Inc. (NYSE:WMB) – US natural gas pipeline operator Williams contributed as it benefitted from positive natural gas tailwinds in the quarter. After scaling back the position in the first quarter, we sold the remaining position in the quarter as its price reached our appraisal value. This was a very successful investment that was extremely contrarian in 2019 and now has become much more consensus appreciated.”
13. Lincoln National Corporation (NYSE:LNC)
Upside Potential as of May 4: 30.7%
Average Price Target Based on Analyst Ratings: $24.8
Dividend Yield as of May 4: 9.45%
Lincoln National Corporation (NYSE:LNC) is an American insurance holding company that also provides investment management services to its consumers. The company is one of the best dividend stocks on our list as it has raised its dividends consistently for the past 11 years. It pays a quarterly dividend of $0.45 per share and has a dividend yield of 9.45%, as of May 4.
In April, Piper Sandler maintained a Neutral rating on Lincoln National Corporation (NYSE:LNC) with a $23 price target, expressing concerns regarding a recent fallout in the banking sector.
At the end of December 2022, 36 hedge funds in Insider Monkey's database held stakes in Lincoln National Corporation (NYSE:LNC), down from 39 in the previous quarter. These stakes have a collective value of roughly $505 million.
12. Energy Transfer LP (NYSE:ET)
Upside Potential as of May 4: 33.7%
Average Price Target Based on Analyst Ratings: $16.8
Dividend Yield as of May 4: 9.75%
Energy Transfer LP (NYSE:ET) is a Texas-based energy company that is engaged in the transport of natural gas and propane pipelines. In April, Morgan Stanley maintained an Overweight rating on the stock with a $17 price target. The firm presented a positive outlook on the sector.
Energy Transfer LP (NYSE:ET) offers a quarterly dividend of $0.3075 per share, having raised it by 0.8% on April 26. The company has been raising its dividends consistently for the past six quarters and also maintains a 5-year streak of dividend growth. The stock's dividend yield came in at 9.75% on May 4. Its solid dividend growth track makes it one of the best dividend stocks on our list.
Of the 943 elite funds tracked by Insider Monkey, 38 funds reported having stakes in Energy Transfer LP (NYSE:ET), up from 33 in the previous quarter. The collective value of these stakes is over $613.4 million.
11. Big Lots, Inc. (NYSE:BIG)
Upside Potential as of May 4: 40.6%
Average Price Target Based on Analyst Ratings: $11.80
Dividend Yield as of May 4: 14.3%
Big Lots, Inc. (NYSE:BIG) is an Ohio-based furniture retail company that also deals in other home decor services and products. The company initiated its dividend policy in 2014 and has paid regular dividends to shareholders since then. Its quarterly payout stands at $0.30 per share for a dividend yield of 14.3%, as of May 4. It is among the best dividend stocks on our list.
At the end of Q4 2022, 14 hedge funds tracked by Insider Monkey owned stakes in Big Lots, Inc. (NYSE:BIG), the same as in the previous quarter. These stakes have a collective value of over $27.6 million. Among these hedge funds, Scopus Asset Management was the company's leading stakeholder in Q4.
10. Medical Properties Trust, Inc. (NYSE:MPW)
Upside Potential as of May 4: 42.6%
Average Price Target Based on Analyst Ratings: $12.00
Dividend Yield as of May 4: 13.79%
Medical Properties Trust, Inc. (NYSE:MPW) is an American real estate investment trust company, headquartered in Alabama. The company mainly invests in healthcare facilities. In April, Stifel maintained a Buy rating on the stock with a $12 price target, highlighting the stock's attractive valuation. The firm also appreciated the stock's double-digit dividend yield.
On April 27, Medical Properties Trust, Inc. (NYSE:MPW) declared a quarterly dividend of $0.29 per share, which was consistent with its previous dividend. The stock has a dividend yield of 13.79%, as of May 4. The company has been rewarding shareholders with growing dividends for nine years straight, which makes it one of the best dividend stocks on our list.
At the end of Q4 2022, 28 hedge funds in Insider Monkey's database were long Medical Properties Trust, Inc. (NYSE:MPW), up from 23 in the previous quarter. The stakes owned by these hedge funds have a collective value of over $367.5 million.
9. Kilroy Realty Corporation (NYSE:KRC)
Upside Potential as of May 4: 44.03%
Average Price Target Based on Analyst Ratings: $40.17
Dividend Yield as of May 4: 7.73%
A California-based real estate investment trust company, Kilroy Realty Corporation (NYSE:KRC) is next on our list of the best dividend stocks. The company has been raising its dividends for the past seven years and currently pays a quarterly dividend of $0.54 per share. The stock has a dividend yield of 7.73%, as recorded on May 4, and is one of the best dividend stocks on our list.
In March, Goldman Sachs assumed its coverage of Kilroy Realty Corporation (NYSE:KRC) with a Buy rating and a $41 price target. The firm appreciated the company's new properties and multiple expansions in the current inflationary environment.
As of the end of Q4 2022, 24 elite funds tracked by Insider Monkey reported having stakes in Kilroy Realty Corporation (NYSE:KRC), up from 23 in the previous quarter. These stakes have a collective worth of over $370 million.
8. Newell Brands Inc. (NASDAQ:NWL)
Upside Potential as of May 4: 51.3%
Average Price Target Based on Analyst Ratings: $14.9
Dividend Yield as of May 4: 9.31%
Newell Brands Inc. (NASDAQ:NWL) is a Georgia-based consumer goods company that also specializes in commercial products. In the first quarter of 2023, the company generated an operating cash flow of $77 million and had over $271 million available in cash and cash equivalents. It is among the best dividend stocks on our list.
Newell Brands Inc. (NASDAQ:NWL) declared a quarterly dividend of $0.23 per share on February 2, which was in line with its previous dividend. The company hasn't raised its dividends since 2017 but has paid regular dividends to shareholders throughout this period. The stock has a dividend yield of 9.31%, as of May 4.
The number of hedge funds tracked by Insider Monkey owning stakes in Newell Brands Inc. (NASDAQ:NWL) stood at 29 in Q4 2022, growing from 26 in the previous quarter. These stakes have a collective value of over $1.2 billion. With over 47.3 million shares, Pzena Investment Management was the company's leading stakeholder in Q4.
7. U.S. Bancorp (NYSE:USB)
Upside Potential as of May 4: 62.1%
Average Price Target Based on Analyst Ratings: $45.9
Dividend Yield as of May 4: 6.78%
U.S. Bancorp (NYSE:USB) is a Minnesota-based bank holding company that offers a wide range of financial services to its consumers. In April, Argus maintained a Buy rating on the stock with a $58 price target, following the company's recent quarterly earnings beat.
U.S. Bancorp (NYSE:USB), one of the best dividend stocks, has been growing its dividends consistently for the past 12 years. The company offers a quarterly dividend of $0.48 per share and has a dividend yield of 6.78%, as of May 4.
At the end of Q4 2022, 58 elite funds tracked by Insider Monkey were long U.S. Bancorp (NYSE:USB), compared with 52 in the previous quarter. The stakes owned by these funds have a consolidated value of $2.6 billion.
Madison Investments mentioned U.S. Bancorp (NYSE:USB) in its Q1 2023 investor letter. Here is what the firm has to say:
“U.S. Bancorp (NYSE:USB) shares are ensnared in the bank-run panic that began late in the quarter. Two large banks failed in early March as depositors rushed to withdraw money on concerns that the banks would suffer from liquidity problems. That’s a self-fulfilling prophecy, of course, but in the case of the two banks, it was prompted by the revelations of utter mismanagement of their securities portfolio. Bank models are, essentially, to borrow short and lend long. This sounds dangerous of course, and it would be if not for the deposit guarantee provided by the FDIC. The history of the U.S. banking system can be divided into two eras – pre-FDIC, when bank runs were fairly common, and post-FDIC, when bank runs have been close to non-existent. However, FDIC protection has its limits, and it remains incumbent on management to properly manage its assets and liabilities. The two banks in question didn’t do that. By taking down the share prices of all banks, we think investors are shooting first and asking questions later; they are not distinguishing between the strong and the weak.
U.S. Bancorp, as one of the largest and best-managed banks in the country, appears to be a net beneficiary so far of the panic among some depositors, with a pick-up in net deposit inflows in recent weeks. We don’t dismiss the probability of industry contagion – in a true nationwide panic, the big banks will suffer along with the small banks, and the well-managed ones will suffer along with the badly-managed ones. But we think the odds of that are quite small, and recent steps by federal regulators confirm that they will do everything in their power to prevent such a scenario, given the calamitous impact that it would have on our economy. We tightly manage this risk by limiting our exposure to the banking sector.”
6. Telephone and Data Systems, Inc. (NYSE:TDS)
Upside Potential as of May 4: 64.6%
Average Price Target Based on Analyst Ratings: $15.50
Dividend Yield as of May 4: 7.82%
Telephone and Data Systems, Inc. (NYSE:TDS) is an Illinois-based telecommunications company. The company raised its quarterly dividend by 3% in February this year to $0.185 per share. Through this increase, it took its dividend growth streak to 48 years, which makes it one of the best dividend stocks on our list. The stock has a dividend yield of 7.82%, as of May 4.
Telephone and Data Systems, Inc. (NYSE:TDS) can be added to dividend portfolios alongside Altria Group, Inc. (NYSE:MO), Verizon Communications Inc. (NYSE:VZ), and British American Tobacco p.l.c. (NYSE:BTI).
The number of hedge funds tracked by Insider Monkey having stakes in Telephone and Data Systems, Inc. (NYSE:TDS) grew to 20 in Q4 2022, from 13 in the preceding quarter. These stakes are collectively valued at over $67.8 million.
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Disclosure. None. Top 20 High Dividend Stocks To Buy According To Analysts is originally published on Insider Monkey.