10 Best Dividend Stocks with Over 9% Yield According to Analysts

3. Xerox Holdings Corporation (NASDAQ:XRX)

Upside Potential as of August 12: 44.18%

Dividend Yield as of August 12: 10.30%

Xerox Holdings Corporation (NASDAQ:XRX) is a Connecticut-based company that develops and manufactures print and digital document products and offers related services. The company’s first and second quarters of 2024 didn’t impress investors much, causing it to decline by nearly 44% since the start of 2024. One major factor contributing to the earnings decline is the company’s ongoing structural changes. Its core print business experienced a 9.9% year-over-year drop in the second quarter of 2024, generating over $1.45 billion. The company’s revenue for the quarter came in at $1.58 billion, which fell by 10% from the same period last year. The revised guidance for FY24 also didn’t reassure investors much. The management has revised its 2024 revenue guidance, now projecting a decline of 5% to 6% in constant currency, compared to the previous forecast of a 3% to 5% decrease.

Although Xerox Holdings Corporation (NASDAQ:XRX) is not currently in an ideal situation, its cost-cutting efforts, steady dividend payments, and positive cash flow guidance offer some reassurance in these tough times. For FY24, the company anticipates generating around $550 million in free cash flow and at least $600 million in operating cash flow, which is favorable news for dividend investors. In the most recent quarter, its free cash flow jumped to $115 million, from $88 million in the prior year period. Despite not increasing its dividends since 2017, the company has consistently paid them and managed to maintain these payouts even during the pandemic, which is notable given its financial challenges. The company currently offers a quarterly dividend of $0.25 per share. The stock’s dividend on August 12 came in at 10.3%. It is among the best dividend stocks on our list with an upside potential of over 44%.

At the end of the March quarter of 2024, 31 hedge funds owned stakes in Xerox Holdings Corporation (NASDAQ:XRX), up from 25 in the preceding quarter, according to Insider Monkey’s database. These stakes are valued at over $88.3 million in total.