13 Best American Dividend Stocks to Buy According to Analysts

1. Thermo Fisher Scientific Inc. (NYSE:TMO)

Upside Potential as of April 20: 46.18%

Thermo Fisher Scientific Inc. (NYSE:TMO), a major US-based biotech and life sciences company, outperformed expectations in the fourth quarter, posting earnings of $6.10 per share on $11.40 billion in revenue—both exceeding Wall Street’s forecasts of $5.94 and $11.28 billion, respectively. Although the biotech sector continues to experience muted spending, anticipated interest rate cuts could ease financing conditions and serve as a tailwind.

Looking ahead to 2025, Thermo Fisher Scientific Inc. (NYSE:TMO) expects adjusted earnings to fall between $23.10 and $23.50 per share, in line with analysts’ projections. As a key player in the healthcare and pharmaceutical industries, Thermo Fisher allows investors to gain exposure to long-term growth in the sector without facing risks tied to expiring patents or dependency on breakthrough drugs. Its business model is built for stability, with more than 80% of its revenue derived from recurring sources.

Thermo Fisher Scientific Inc. (NYSE:TMO) also demonstrated strong cash generation in the latest quarter, bringing in $3.3 billion in operating cash flow and $2.8 billion in free cash flow. Throughout 2024, it returned $4.6 billion to shareholders through dividends and buybacks. The company currently pays a quarterly dividend of $0.43 per share, which was raised by 10% in February, marking its eighth consecutive year of dividend increases. The stock has a dividend yield of 0.40%, as of April 20.

Overall, Thermo Fisher Scientific Inc. (NYSE:TMO) ranks first on our list of the best American dividend stocks according to analysts. While we acknowledge the potential of TMO 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 time frame. If you are looking for a deeply undervalued dividend stock that is more promising than TMO but that trades at 10 times its earnings and grows its earnings at double digit rates annually, check out our report about the dirt cheap dividend stock.

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