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

1. FAT Brands Inc. (NASDAQ:FAT)

Upside Potential as of August 12: 268.6%

Dividend Yield as of August 12: 10.32%

FAT Brands Inc. (NASDAQ:FAT) is an American multi-brand restaurant company, based in California. Over the past three years, FAT Brands (FAT) has expanded its portfolio to include 18 renowned restaurant brands, with around 2,300 units spread across 40 countries and 49 US states. The company is experiencing strong business momentum this year as it has opened 45 new restaurants so far in 2024, 24 of which were launched in the second quarter, and it plans to open over 120 new locations in 2024. The company is seeing significant activity from new franchisees, ongoing interest from existing partners to develop additional brands and increased enthusiasm for exploring co-branding opportunities that capitalize on synergies within its brand portfolio.

In the second quarter of 2024, FAT Brands Inc. (NASDAQ:FAT) generated over $152 million in revenues, which showed a 42.4% growth from the same period last year. The company is also optimistic about its business prospects for the remainder of the year. Its long-term strategy focuses on generating value through the organic growth of its existing brands, acquiring new brands that strategically enhance its portfolio and realizing value from strategic divestments to manage outstanding debt. Ultimately, the goal is to increase long-term value for stakeholders.

On July 11, FAT Brands Inc. (NASDAQ:FAT) declared a quarterly dividend of $0.14 per share, which was in line with its previous dividend. The stock has a dividend yield of 10.32%, as of August 12. Street analysts maintained a Consensus Buy rating on the stock with a $20 price target, which reflects a significant upside potential of 269%.

As per Insider Monkey’s database of Q1 2024, 4 hedge funds held stakes in FAT Brands Inc. (NASDAQ:FAT), the same as in the preceding quarter. These stakes are worth nearly $7 million in total. Among these hedge funds, ADW Capital was the company’s largest stakeholder in Q1.

While we acknowledge the potential of FAT as an investment, our conviction lies in the belief that some deeply undervalued dividend stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a deeply undervalued dividend stock that is more promising than FAT but that trades at less than 7 times its earnings and yields nearly 10%, check out our report about the dirt cheap dividend stock.

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Disclosure: None. This article is originally published at Insider Monkey.