16 Best Income Stocks To Buy According to Analysts

3. Comcast Corporation (NASDAQ:CMCSA)

Upside Potential as of December 13: 23.4%

An American multinational telecommunications company, Comcast Corporation (NASDAQ:CMCSA) ranks third on our list of the best dividend stocks. In addition to analysts’ projections of an upside potential of over 23%, CMCSA also remained popular among elite funds in the third quarter of 2024, according to Insider Monkey’s database. 72 funds held stakes in the company in Q3, growing significantly from 61 in the previous quarter. These stakes are collectively valued at over $5.44 billion.

Comcast Corporation (NASDAQ:CMCSA) posted $32.07 billion in revenue for the third quarter of 2024, marking a 7% increase compared to the same quarter in the previous year. The company demonstrated solid performance, with broadband ARPU increasing by 3.6% and a 5% rise in its connectivity segment. Adjusted EBITDA margins for the Connectivity & Platforms division reached 40.9%. Additionally, Comcast successfully hosted the Paris Summer Olympics, achieving significant growth in Peacock’s revenue and subscriber base, while reinforcing NBC’s position as the leading network for the 2023-2024 season.

Despite reporting strong earnings, Comcast Corporation (NASDAQ:CMCSA) is down by nearly 9% since the start of 2024. The company’s performance has been underwhelming, offering little incentive for investors to engage this year. The results were seen as a short-term boost rather than a sign of sustainable growth, leaving investors unimpressed.

That said, Comcast Corporation (NASDAQ:CMCSA) maintained a solid cash position from a dividend perspective. In the latest quarter, the company generated over $7 billion in operating cash flow and reported free cash flow exceeding $3.4 billion. Furthermore, it returned $1.2 billion to shareholders through dividends, cementing its status as one of the best dividend stocks on the list. The company has been growing its dividends for 16 consecutive years and pays a quarterly dividend of $0.31 per share. As of December 13, the stock has a dividend yield of 3.11%.