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13 Best Dividend Stocks with Upside Potential

In this article, we discuss 13 best dividend stocks with upside potential. You can skip our detailed analysis of dividend stocks and their performance over the years, and go directly to read 5 Best Dividend Stocks with Upside Potential

Pivotal Advisors’ CEO, Tiffany McGhee, discussed the importance of dividend stocks in today’s market in her recent interview with CNBC. Here are some comments from the analyst:

“When we are talking about interest rates, yes, we are at a pause right now. I think investors should pay attention to the parts of the portfolio with the largest exposure to time value of money. Yes, some of these high dividend-paying stocks will have more exposure to that. These are the stocks that may have been negatively affected by inflation and they may have inflation eroded the purchasing power but there is an opportunity in these stocks now.”

Mike Wilson, Morgan Stanley’s top investment officer and chief U.S. equity strategist, recently mentioned that the market is stuck in a state of uncertainty while waiting for the Fed’s decision on interest rates. In this uncertain time, he advised focusing on quality large-cap stocks—companies with solid financials and earnings. These companies won’t need to borrow money at high interest rates to run their businesses. Wilson and his team suggested that stocks with strong qualities, especially those with growing dividends, could be smart choices for investors in uncertain times. Their analysis showed that dividend stocks tend to perform better than those without dividends, especially when inflation is high but on the decline. Here is what these analysts said in their September note:

“Today’s macro environment is generally supportive of dividend payer outperformance. Dividends provide a positive return cushion with a notable portion of outperformance for payers versus nonpayers coming during periods of market volatility.”

Quality companies usually generate more cash, allowing them to grow dividends and manage debts better. Shareholders benefit from increased cash flow because these companies not only start with higher earnings but also maintain a strong earnings trajectory. They’re more likely to pay and increase dividends compared to the general market. In addition to this, they face fewer negative events like big share issuances, losses, or significant underperformance among their peers. This aligns with the data in our article, showing that companies boosting their dividends historically perform better than the broader S&P 500 index. They consistently provide dependable income growth across various market sizes and industries. These traits are appealing overall and become even more valuable when markets get rough.

The Procter & Gamble Company (NYSE:PG), Colgate-Palmolive Company (NYSE:CL), and PepsiCo, Inc. (NASDAQ:PEP) are some of the best dividend stocks to consider. They’ve consistently increased their dividends for many years, showing impressive track records. In this article, we will discuss dividend stocks with upside potential.

Photo by Dan Dennis on Unsplash

Our Methodology:

To compile this article, we first scanned a list of stocks that have raised their dividends for 15 consecutive years or more. This group reflects stability and long-term performance in dividend payouts. From this list, we further refined our selection criteria by identifying stocks with a projected upside potential of over 15% based on analyst price targets. The stocks are ranked according to their upside potential, as of November 17.

13. Pentair plc (NYSE:PNR)

Upside Potential as of November 17: 15.5%

Pentair plc (NYSE:PNR) is an American multinational company that specializes in water treatment and fluid handling solutions. In the third quarter of 2023, the company reported revenue of $1 billion, which beat analysts’ estimates by $13.5 million. Its operating cash flow for the quarter came in at $162 million and its free cash flow amounted to $143 million.

On September 18, Pentair plc (NYSE:PNR) declared a quarterly dividend of $0.22 per share, which was in line with its previous dividend. It is one of the best dividend stocks on our list as the company has been growing its dividends for 47 consecutive years. The stock has a dividend yield of 1.41%, as of November 17.

At the end of Q2 2023, 33 hedge funds in Insider Monkey’s database reported having stakes in Pentair plc (NYSE:PNR), compared with 34 in the previous quarter. The consolidated value of these stakes is over $1.55 billion.

12. Target Corporation (NYSE:TGT)

Upside Potential as of November 17: 15.7%

Target Corporation (NYSE:TGT) is a well-known retail company that is recognized for offering a wide array of products across various categories, including household essentials, groceries, clothing, electronics, home goods, and more. It currently pays a quarterly dividend of $1.10 per share and has a dividend yield of 3.38%, as of November 17. The company has been growing its dividends consistently for the past 52 years, which makes TGT one of the best dividend stocks.

As of the close of Q2 2023, 45 hedge funds in Insider Monkey’s database reported having stakes in Target Corporation (NYSE:TGT), down from 46 in the previous quarter. These stakes have a collective value of over $882.8 million.

11. Walmart Inc. (NYSE:WMT)

Upside Potential as of November 17: 16.08%

Walmart Inc. (NYSE:WMT) is one of the world’s largest retail corporations, operating a chain of hypermarkets, discount department stores, and grocery stores. The company was a part of 81 hedge fund portfolios at the end of Q2 2023, according to Insider Monkey’s database of Q2 2023. The total value of these stakes is more than $5.4 billion.

Walmart Inc. (NYSE:WMT) currently offers a quarterly dividend of $0.57 per share, having it raised by 2% in February this year. Through this increase, the company stretched its dividend growth streak to 50 years, which makes WMT one of the best dividend stocks on our list. As of November 17, the stock has a dividend yield of 1.46%.

10. United Parcel Service, Inc. (NYSE:UPS)

Upside Potential as of November 17: 16.3%

United Parcel Service, Inc. (NYSE:UPS) is a global logistics and package delivery company. It is renowned for its package delivery services, catering to residential and commercial customers worldwide. They handle small parcels to larger freight shipments.

For the first nine months of 2023, United Parcel Service, Inc. (NYSE:UPS) generated over $7.8 billion in operating cash flow and its free cash flow for the quarter came in at $4.88 billion. For FY23, the company expects to pay $5.4 billion to shareholders through dividends.

As of the end of the June quarter of 2023, 47 hedge funds in Insider Monkey’s database owned stakes in United Parcel Service, Inc. (NYSE:UPS), growing from 39 in the preceding quarter. The collective value of these stakes is over $945.5 million.

9. Cincinnati Financial Corporation (NASDAQ:CINF)

Upside Potential as of November 17: 16.4%

Cincinnati Financial Corporation (NASDAQ:CINF) is an Ohio-based insurance company that provides a range of property and casualty insurance products for individuals and businesses, covering areas such as home, auto, liability, and commercial property insurance. It is one of the best dividend stocks on our list as the company holds a 62-year streak of consistent dividend growth. The company pays a quarterly dividend of $0.75 per share for a dividend yield of 2.97%, as of November 17.

The number of hedge funds tracked by Insider Monkey owning stakes in Cincinnati Financial Corporation (NASDAQ:CINF) stood at 26 in the second quarter of 2023. these stakes are collectively valued at over $280.6 million.

8. West Pharmaceutical Services, Inc. (NYSE:WST)

Upside Potential as of November 17: 17.14%

West Pharmaceutical Services, Inc. (NYSE:WST) is a global manufacturer and supplier of packaging and delivery systems for injectable drugs and healthcare products. The company offers a quarterly dividend of $0.20 per share, having raised it by 5.3% from the previous dividend. This marked the company’s 31st consecutive year of dividend growth, which places WST as one of the best dividend stocks on our list. The stock’s dividend yield on November 17 came in at 0.23%.

At the end of June 2023, 39 hedge funds in Insider Monkey’s database reported having stakes in West Pharmaceutical Services, Inc. (NYSE:WST), up from 37 a quarter earlier. Their collective stake value is more than $1.4 billion.

7. Federal Realty Investment Trust (NYSE:FRT)

Upside Potential as of November 17: 18.14%

Federal Realty Investment Trust (NYSE:FRT) is an American real estate investment trust company that specializes in the ownership, management, and development of high-quality retail and mixed-use properties. The company has been rewarding shareholders with growing dividends for the past 56 years. It currently pays a quarterly dividend of $1.09 per share and has a dividend yield of 4.71%.

With a collective stake value of nearly $125 million, 15 hedge funds owned positions in Federal Realty Investment Trust (NYSE:FRT) at the end of Q2 2023, as per Insider Monkey’s database.

6. Bristol-Myers Squibb Company (NYSE:BMY)

Upside Potential as of November 17: 19.3%

An American multinational pharmaceutical company, Bristol-Myers Squibb Company (NYSE:BMY) is next on our list of the best dividend stocks. The company offers a quarterly dividend of $0.57 per share and has a dividend yield of 4.50%, as of November 17. It maintains a 17-year streak of consistent dividend growth.

Bristol-Myers Squibb Company (NYSE:BMY) was a part of 66 hedge fund portfolios at the end of Q2 2023, according to Insider Monkey’s database. The stakes owned by these hedge funds have a collective value of more than $1.7 billion. Among these hedge funds, Pzena Investment Management was the company’s leading stakeholder in Q2.

Click to continue reading and see 5 Best Dividend Stocks with Upside Potential

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Disclosure. None. 13 Best Dividend Stocks with Upside Potential is originally published on Insider Monkey.

AI, Tariffs, Nuclear Power: One Undervalued Stock Connects ALL the Dots (Before It Explodes!)

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

AI is eating the world—and the machines behind it are ravenous.

Each ChatGPT query, each model update, each robotic breakthrough consumes massive amounts of energy. In fact, AI is already pushing global power grids to the brink.

Wall Street is pouring hundreds of billions into artificial intelligence—training smarter chatbots, automating industries, and building the digital future. But there’s one urgent question few are asking:

Where will all of that energy come from?

AI is the most electricity-hungry technology ever invented. Each data center powering large language models like ChatGPT consumes as much energy as a small city. And it’s about to get worse.

Even Sam Altman, the founder of OpenAI, issued a stark warning:

“The future of AI depends on an energy breakthrough.”

Elon Musk was even more blunt:

“AI will run out of electricity by next year.”

As the world chases faster, smarter machines, a hidden crisis is emerging behind the scenes. Power grids are strained. Electricity prices are rising. Utilities are scrambling to expand capacity.

And that’s where the real opportunity lies…

One little-known company—almost entirely overlooked by most AI investors—could be the ultimate backdoor play. It’s not a chipmaker. It’s not a cloud platform. But it might be the most important AI stock in the US owns critical energy infrastructure assets positioned to feed the coming AI energy spike.

As demand from AI data centers explodes, this company is gearing up to profit from the most valuable commodity in the digital age: electricity.

The “Toll Booth” Operator of the AI Energy Boom

  • It owns critical nuclear energy infrastructure assets, positioning it at the heart of America’s next-generation power strategy.
  • It’s one of the only global companies capable of executing large-scale, complex EPC (engineering, procurement, and construction) projects across oil, gas, renewable fuels, and industrial infrastructure.
  • It plays a pivotal role in U.S. LNG exportation—a sector about to explode under President Trump’s renewed “America First” energy doctrine.

Trump has made it clear: Europe and U.S. allies must buy American LNG.

And our company sits in the toll booth—collecting fees on every drop exported.

But that’s not all…

As Trump’s proposed tariffs push American manufacturers to bring their operations back home, this company will be first in line to rebuild, retrofit, and reengineer those facilities.

AI. Energy. Tariffs. Onshoring. This One Company Ties It All Together.

While the world is distracted by flashy AI tickers, a few smart investors are quietly scooping up shares of the one company powering it all from behind the scenes.

AI needs energy. Energy needs infrastructure.

And infrastructure needs a builder with experience, scale, and execution.

This company has its finger in every pie—and Wall Street is just starting to notice.

Wall Street is noticing this company also because it is quietly riding all of these tailwinds—without the sky-high valuation.

While most energy and utility firms are buried under mountains of debt and coughing up hefty interest payments just to appease bondholders…

This company is completely debt-free.

In fact, it’s sitting on a war chest of cash—equal to nearly one-third of its entire market cap.

It also owns a huge equity stake in another red-hot AI play, giving investors indirect exposure to multiple AI growth engines without paying a premium.

And here’s what the smart money has started whispering…

The Hedge Fund Secret That’s Starting to Leak Out

This stock is so off-the-radar, so absurdly undervalued, that some of the most secretive hedge fund managers in the world have begun pitching it at closed-door investment summits.

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Why? Because excluding cash and investments, this company is trading at less than 7 times earnings.

And that’s for a business tied to:

  • The AI infrastructure supercycle
  • The onshoring boom driven by Trump-era tariffs
  • A surge in U.S. LNG exports
  • And a unique footprint in nuclear energy—the future of clean, reliable power

You simply won’t find another AI and energy stock this cheap… with this much upside.

This isn’t a hype stock. It’s not riding on hope.

It’s delivering real cash flows, owns critical infrastructure, and holds stakes in other major growth stories.

This is your chance to get in before the rockets take off!

Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.

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As an investor, you want to be on the side of the winners, and AI is the winning ticket.

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A New Dawn is Coming to U.S. Stocks

I work for one of the largest independent financial publishers in the world – representing over 1 million people in 148 countries.

We’re independently funding today’s broadcast to address something on the mind of every investor in America right now…

Should I put my money in Artificial Intelligence?

Here to answer that for us… and give away his No. 1 free AI recommendation… is 50-year Wall Street titan, Marc Chaikin.

Marc’s been a trader, stockbroker, and analyst. He was the head of the options department at a major brokerage firm and is a sought-after expert for CNBC, Fox Business, Barron’s, and Yahoo! Finance…

But what Marc’s most known for is his award-winning stock-rating system. Which determines whether a stock could shoot sky-high in the next three to six months… or come crashing down.

That’s why Marc’s work appears in every Bloomberg and Reuters terminal on the planet…

And is still used by hundreds of banks, hedge funds, and brokerages to track the billions of dollars flowing in and out of stocks each day.

He’s used this system to survive nine bear markets… create three new indices for the Nasdaq… and even predict the brutal bear market of 2022, 90 days in advance.

Click to continue reading…