16 Most Promising Dividend Stocks According to Analysts

Published on December 26, 2023 at 7:21 pm by Vardah Gill in Dividend Stocks, Hedge Funds, News

In this article, we discuss 16 most promising dividend stocks according to analysts. You can skip our detailed analysis of dividend stocks and their performance over the years, and go directly to read 5 Most Promising Dividend Stocks According to Analysts.

This year brought a notable shift in the investment scene, where technology stocks surged ahead, overshadowing the performance of dividend-focused equities. Despite this change, experts advise that investors diversify their portfolios across various asset classes to navigate diverse market situations effectively. This strategy aims to ensure resilience against fluctuations and uncertainties in the market, emphasizing the importance of a well-rounded investment approach that goes beyond focusing solely on one sector or type of stock. Art Hogan, the chief market strategist at B. Riley Wealth, shared insights on investment strategies in an interview with Bloomberg. Here are some comments from the analyst:

“It’s clear that having a diversified portfolio is probably the best way to navigate the investment climate and the best way to do that is owning the S&P 500 — full stop. If you were to start this year by saying ‘everyone says there’s a recession coming so I’m going to invest defensively,’ you got punched in the nose.”

Dividend stocks faced challenges this year, yet these equities have retained their status as investor favorites over the years due to the exceptional returns they consistently generate. When investing in dividend stocks, investors pay special attention to companies that have raised their dividends for years. This long-standing history of raising dividends signifies stability, financial health, and a commitment to sharing profits with shareholders. The S&P 500 High Dividend Growth Index monitors companies that have consistently increased their dividends for at least 5 years and are expected to continue this trend in the upcoming year. This index has outperformed the S&P 500 since 2010, according to a report by S&P Dow Jones Indices. Despite the S&P 500 showing strong performance during this time, the High Dividend Growth Index has not only matched but exceeded it. Over the period from 2010, it has shown an average yearly return of 11.94%, while also offering a notably higher yield compared to the broader market. In addition to this, the S&P 500 High Dividend Growth Index increased its dividend annually by 13.8% between 2010 and 2022. This growth rate surpasses the long-term inflation rate in the US, even considering the recent rise in inflation observed over the last few years.

A growing flow of dividends brings unique advantages that might be rare in other investment plans. Firstly, robust dividend growth can boost returns and act as a defense against inflation, similar to an annual salary increase. Companies increasing dividends often see their stock prices rise too. This is because stocks typically follow a company’s improving earnings and dividends. In addition to this, reinvesting these increasing dividends speeds up how quickly your investment grows over time through compounding. According to a report by T. Rowe Price, from the end of 1985 to the end of 2022, the stocks in the Russell 1000 Index that consistently increased their dividends showed better performance compared to the broader benchmark. Additionally, these dividend-growing stocks demonstrated lower fluctuations or volatility in their performance during this period.

Some of the best dividend growth stocks include Johnson & Johnson (NYSE:JNJ), The Procter & Gamble Company (NYSE:PG), and AbbVie Inc (NYSE:ABBV) as these companies boast a long-standing history of consistently increasing their dividends over many years, making them sought-after choices for those seeking reliable and growing income from their investments. In this article, we will further discuss some of the most promising stocks that pay dividends.

Photo by NeONBRAND on Unsplash

Our Methodology:

To compile this article, we first scanned a list of stocks known for their consistent dividend track records and sustained shareholder payouts over an extended period. 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 20% based on analyst price targets. The stocks are ranked according to their upside potential, as of December 20.

Data from around 900 elite hedge funds tracked by Insider Monkey in the third quarter of 2023 was used to identify the number of hedge funds that hold stakes in each firm. Hedge funds’ top 10 consensus stock picks outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). That’s why we pay very close attention to this often-ignored indicator.

16. Albemarle Corporation (NYSE:ALB)

Upside Potential as of December 20: 20.5%

Albemarle Corporation (NYSE:ALB) is a global specialty chemicals company that focuses on developing, manufacturing, and marketing a wide range of chemical products. The company offers a quarterly dividend of $0.40 per share and has a dividend yield of 1.07%, as of December 24. It is one of the most promising stocks on our list as the company has been growing its dividends for the past 29 years.

At the end of Q3 2023, 37 hedge funds tracked by Insider Monkey reported having stakes in Albemarle Corporation (NYSE:ALB), compared with 41 in the preceding quarter. The overall value of these stakes is more than $274.3 million. Among these hedge funds, Coatue Management was the company’s leading stakeholder in Q3.

15. Cheniere Energy, Inc. (NYSE:LNG)

Upside Potential as of December 20: 20.7%

Cheniere Energy, Inc. (NYSE:LNG) is a leading energy company primarily involved in liquefied natural gas infrastructure, production, and marketing. The company started paying dividends in 2021 and has raised its payouts two times since then. It currently pays a quarterly dividend of $0.435 per share and has a dividend yield of 1.01%, as of December 24.

As of the close of Q3 2023, 58 hedge funds in Insider Monkey’s database reported having stakes in Cheniere Energy, Inc. (NYSE:LNG), compared with 60 a quarter earlier. These stakes are collectively valued at over $1.45 billion.

14. Brookfield Infrastructure Partners L.P. (NYSE:BIP)

Upside Potential as of December 20: 21.6%

Brookfield Infrastructure Partners L.P. (NYSE:BIP) is a global infrastructure company that owns and operates various infrastructure assets across different sectors worldwide. It is one of the most promising stocks on our list as the company has been rewarding shareholders with growing dividends for the past 15 years. The company offers a quarterly dividend of $0.3825 per share and has a dividend yield of 4.83%, as recorded on December 24.

At the end of September 2023, 17 hedge funds in Insider Monkey’s database owned stakes in Brookfield Infrastructure Partners L.P. (NYSE:BIP), growing from 11 in the previous quarter. These stakes have a total value of more than $115.7 million. Select Equity Group was the largest stakeholder of the company in Q3.

13. British American Tobacco p.l.c. (NYSE:BTI)

Upside Potential as of December 20: 21.7%

British American Tobacco p.l.c. (NYSE:BTI) is a London-based multinational tobacco company engaged in the manufacturing, distribution, and sale of tobacco and nicotine-related products. On December 20, the company declared a quarterly dividend of $0.7006 per share, which was in line with its previous dividend. The company has a 25-year run of paying uninterrupted dividend payments to shareholders, which makes BTI one of the most promising stocks on our list. As of December 24, the stock has a dividend yield of 9.86%.

According to Insider Monkey’s database of Q3 2023, 17 hedge funds owned investments in British American Tobacco p.l.c. (NYSE:BTI), worth collectively nearly $330 million.

12. AstraZeneca PLC (NASDAQ:AZN)

Upside Potential as of December 20: 21.8%

AstraZeneca PLC (NASDAQ:AZN) is a biopharmaceutical company primarily focused on the discovery, development, manufacturing, and marketing of prescription medicines. The company offers an interim dividend of $0.93 per share and has a dividend yield of 2.25%, as of December 24. In the most recent quarter, it returned $4.5 billion to shareholders through dividends, which makes AZN one of the most promising stocks on our list.

The number of hedge funds tracked by Insider Monkey owning stakes in AstraZeneca PLC (NASDAQ:AZN) jumped to 49 in Q3 2023, from 41 in the previous quarter. The overall value of these stakes is more than $2.64 billion. With over 14 million shares, GQG Partners was the company’s leading stakeholder in Q3.

11. AT&T Inc. (NYSE:T)

Upside Potential as of December 20: 22.4%

AT&T Inc. (NYSE:T) is a multinational telecommunications conglomerate with diversified operations in various segments of the communications and media industry. It is one of the most promising stocks on our list as the company has been making uninterrupted dividend payments to shareholders since 1995. On December 13, the company announced a quarterly dividend of $0.2775 per share, which was consistent with its previous dividend. The stock’s dividend yield on December 24 came in at 6.71%.

As of the end of Q3 2023, 52 hedge funds in Insider Monkey’s database reported having stakes in AT&T Inc. (NYSE:T), compared with 56 in the preceding quarter. The total value of these stakes is over $1.7 billion.

10. The Cigna Group (NYSE:CI)

Upside Potential as of December 20: 22.5%

The Cigna Group (NYSE:CI) is an American health services organization that provides a wide range of healthcare, insurance, and wellness solutions. The company pays a quarterly dividend of $1.23 per share, having raised it by 10% in 2023. It has been growing its dividends for the past three years, which makes CI one of the most promising stocks on our list. The stock has a dividend yield of 1.65%, as of December 24.

Insider Monkey’s database of Q3 2023 showed that 74 hedge funds owned stakes in The Cigna Group (NYSE:CI), which remained unchanged from the previous quarter. The consolidated value of these stakes is over $2.84 billion. With over 1.5 million shares, Glenview Capital was the company’s leading stakeholder in Q3.

9. Devon Energy Corporation (NYSE:DVN)

Upside Potential as of December 20: 22.8%

Devon Energy Corporation (NYSE:DVN) is an independent energy company engaged in the exploration, development, and production of oil, natural gas, and natural gas liquids. The company’s current quarterly dividend comes in at $0.77 per share and has a dividend yield of 6.19%, as of December 24.

The number of hedge funds in Insider Monkey’s database owning stakes in Devon Energy Corporation (NYSE:DVN) grew to 52 in Q3 2023, from 45 in the preceding quarter. The collective value of these stakes is more than $863.8 million.

8. FedEx Corporation (NYSE:FDX)

Upside Potential as of December 20: 23.2%

FedEx Corporation (NYSE:FDX) is an American courier delivery services company that provides a broad range of transportation, e-commerce, and business services. It is one of the most promising stocks on our list as the company has been raising its dividends for the past three years. The company offers a quarterly dividend of $1.26 per share and has a dividend yield of 2.00%, as of December 24.

As of the end of the third quarter of 2023, 67 hedge funds tracked by Insider Monkey reported owning stakes in FedEx Corporation (NYSE:FDX), growing from 62 in the previous quarter. The consolidated value of these stakes is roughly $3 billion.

7. Exxon Mobil Corporation (NYSE:XOM)

Upside Potential as of December 20: 26.5%

An American multinational energy company, Exxon Mobil Corporation (NYSE:XOM) is next on our list of the most promising stocks. The company’s dividend growth streak spans over 41 years and it offers a quarterly dividend of $0.95 per share. As of December 24, the stock has a dividend yield of 3.70%.

At the end of September 2023, 79 hedge funds owned stakes in Exxon Mobil Corporation (NYSE:XOM), up from 71 in the previous quarter, according to Insider Monkey’s database. These stakes are collectively valued at over $4.5 billion.

6. Nutrien Ltd. (NYSE:NTR)

Upside Potential as of December 20: 26.6%

Nutrien Ltd. (NYSE:NTR) is a global agricultural company that primarily operates in the production and distribution of crop nutrients, agricultural supplies, and services. On November 1, the company declared a quarterly dividend of $0.53 per share, which was consistent with its previous dividend. The company maintains a four-year streak of consistent dividend growth, which makes NTR one of the most promising stocks on our list. The stock’s dividend yield on December 24 came in at 3.88%.

According to Insider Monkey’s database of Q3 2023, 33 hedge funds held investments in Nutrien Ltd. (NYSE:NTR), up from 31 in the preceding quarter. The collective value of stakes owned by these hedge funds is over $526.3 million. Among these hedge funds, First Eagle Investment Management was the company’s leading stakeholder in Q3.

Click to continue reading and see 5 Most Promising Dividend Stocks According to Analysts.

AI Fire Sale: Insider Monkey’s #1 AI Stock Pick Is On A Steep Discount

Published on October 30, 2024 at by Inan Dogan, PhD

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!

The whispers are turning into roars.

Artificial intelligence isn’t science fiction anymore.

It’s the revolution reshaping every industry on the planet.

From driverless cars to medical breakthroughs, AI is on the cusp of a global explosion, and savvy investors stand to reap the rewards.

Here’s why this is the prime moment to jump on the AI bandwagon:

Exponential Growth on the Horizon: Forget linear growth – AI is poised for a hockey stick trajectory.

Imagine every sector, from healthcare to finance, infused with superhuman intelligence.

We’re talking disease prediction, hyper-personalized marketing, and automated logistics that streamline everything.

This isn’t a maybe – it’s an inevitability.

Early investors will be the ones positioned to ride the wave of this technological tsunami.

Ground Floor Opportunity: Remember the early days of the internet?

Those who saw the potential of tech giants back then are sitting pretty today.

AI is at a similar inflection point.

We’re not talking about established players – we’re talking about nimble startups with groundbreaking ideas and the potential to become the next Google or Amazon.

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.

The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.

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

The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI.

From computer scientists to mathematicians, the next generation of innovators is pouring its energy into this field.

This influx of talent guarantees a constant stream of groundbreaking ideas and rapid advancements.

By investing in AI, you’re essentially backing the future.

The future is powered by artificial intelligence, and the time to invest is NOW.

Don’t be a spectator in this technological revolution.

Dive into the AI gold rush and watch your portfolio soar alongside the brightest minds of our generation.

This isn’t just about making money – it’s about being part of the future.

So, buckle up and get ready for the ride of your investment life!

Act Now and Unlock a Potential 10,000% Return: This AI Stock is a Diamond in the Rough (But Our Help is Key!)

The AI revolution is upon us, and savvy investors stand to make a fortune.

But with so many choices, how do you find the hidden gem – the company poised for explosive growth?

That’s where our expertise comes in.

We’ve got the answer, but there’s a twist…

Imagine an AI company so groundbreaking, so far ahead of the curve, that even if its stock price quadrupled today, it would still be considered ridiculously cheap.

That’s the potential you’re looking at. This isn’t just about a decent return – we’re talking about a 10,000% gain over the next decade!

Our research team has identified a hidden gem – an AI company with cutting-edge technology, massive potential, and a current stock price that screams opportunity.

This company boasts the most advanced technology in the AI sector, putting them leagues ahead of competitors.

It’s like having a race car on a go-kart track.

They have a strong possibility of cornering entire markets, becoming the undisputed leader in their field.

Here’s the catch (it’s a good one): To uncover this sleeping giant, you’ll need our exclusive intel.

We want to make sure none of our valued readers miss out on this groundbreaking opportunity!

That’s why we’re slashing the price of our Premium Readership Newsletter by a whopping 70%.

For a ridiculously low price of just $29, you can unlock a year’s worth of in-depth investment research and exclusive insights – that’s less than a single restaurant meal!

Here’s why this is a deal you can’t afford to pass up:

• Access to our Detailed Report on this Game-Changing AI Stock: Our in-depth report dives deep into our #1 AI stock’s groundbreaking technology and massive growth potential.

• 11 New Issues of Our Premium Readership Newsletter: You will also receive 11 new issues and at least one new stock pick per month from our monthly newsletter’s portfolio over the next 12 months. These stocks are handpicked by our research director, Dr. Inan Dogan.

• One free upcoming issue of our 70+ page Quarterly Newsletter: A value of $149

• Bonus Reports: Premium access to members-only fund manager video interviews

• Ad-Free Browsing: Enjoy a year of investment research free from distracting banner and pop-up ads, allowing you to focus on uncovering the next big opportunity.

• 30-Day Money-Back Guarantee: If you’re not absolutely satisfied with our service, we’ll provide a full refund within 30 days, no questions asked.

Space is Limited! Only 1000 spots are available for this exclusive offer. Don’t let this chance slip away – subscribe to our Premium Readership Newsletter today and unlock the potential for a life-changing investment.

Here’s what to do next:

1. Head over to our website and subscribe to our Premium Readership Newsletter for just $29.

2. Enjoy a year of ad-free browsing, exclusive access to our in-depth report on the revolutionary AI company, and the upcoming issues of our Premium Readership Newsletter over the next 12 months.

3. Sit back, relax, and know that you’re backed by our ironclad 30-day money-back guarantee.

Don’t miss out on this incredible opportunity! Subscribe now and take control of your AI investment future!

Subscribe Now!

No worries about auto-renewals! Our 30-Day Money-Back Guarantee applies whether you’re joining us for the first time or renewing your subscription a year later!

A New Dawn is Coming to U.S. Stocks

Published on November 16, 2024 at by Insider Monkey Staff

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…

Insider Monkey Ads

Markets

Insider Trading

Hedge Funds

Retirement

Opinion

Log In

Sign Up