10 Best Dividend Stocks Yielding at Least 7% According to Analysts

7. Delek Logistics Partners, LP (NYSE:DKL)

Upside Potential as of February 5: 8.9%

Dividend Yield as of February 5: 10.19%

Delek Logistics Partners, LP (NYSE:DKL) is a US-based midstream and logistics company specializing in the transportation and storage of crude oil, refined products, and other liquid hydrocarbons. The company maintains a stable earnings stream, with 36% of its EBITDA generated through long-term agreements with Delek, while the remaining 64% comes from third-party clients.

Delek Logistics Partners, LP (NYSE:DKL) generates enough cash flow to sustain its high-yield distributions. In Q3 2024, its coverage ratio was 1.1, falling slightly short of the 1.3 target due to the late timing of its H2O Midstream acquisition. Additionally, the company received distributions from its investment in the Wink-to-Webster pipeline after the quarter ended. Historically, its coverage ratio has remained above 1.3 on average over the past several years.

On January 24, Delek Logistics Partners, LP (NYSE:DKL) declared a 1% hike in its quarterly dividend to $1.105 per share. This marked the company’s 48th consecutive quarter of dividend growth, which makes DKL one of the best dividend stocks on our list. The company maintains solid cash flow and a stable balance sheet. By the end of the quarter, its leverage ratio stood at 4.15, a healthy level for a master limited partnership. The company generated $25 million in operating cash flow and $62 million in distributable free cash flow.

As per Insider Monkey’s database, 23 hedge funds owned stakes in Delek Logistics Partners, LP (NYSE:DKL) in Q3 2024, compared with 26 in the previous quarter. The overall value of these stakes is more than $196.3 million.