5 Best Dividend Stocks with High Upside Potential

In this article, we discuss 5 best dividend stocks with high upside potential. If you want to read our detailed analysis of dividend stocks and their past performance, go directly to read 12 Best Dividend Stocks with High Upside Potential. 

5. Sirius XM Holdings Inc. (NASDAQ:SIRI)

Upside Potential as of April 15: 47.6%

Sirius XM Holdings Inc. (NASDAQ:SIRI) is a New York-based broadcasting company that offers a wide range of audio services to its consumers. The company offers a quarterly dividend of $0.0266 per share and has a dividend yield of 3.38%, as of April 15. It is one of the best dividend stocks on our list as the company maintains a seven-year streak of consistent dividend growth.

As of the end of December 2023, 22 hedge funds in Insider Monkey’s database held stakes in Sirius XM Holdings Inc. (NASDAQ:SIRI), compared with 24 in the previous quarter. The consolidated value of these stakes is over $345.5 million.

4. Zoetis Inc. (NYSE:ZTS)

Upside Potential as of April 15: 51.2%

Zoetis Inc. (NYSE:ZTS) is a global animal health company that discovers a wide range of veterinary medicines and vaccines. The company currently offers a quarterly dividend of $0.432 per share, growing it by 15% in December 2023. Through this increase, the company stretched its dividend growth streak to 12 years, which makes ZTS one of the best dividend stocks on our list. The stock has a dividend yield of 1.15%, as recorded on April 15.

Zoetis Inc. (NYSE:ZTS) was a part of 50 hedge fund portfolios at the end of Q4 2023, compared with 56 in the previous quarter, as per Insider Monkey’s database. The stakes owned by these hedge funds have a total value of over $1.34 billion. With more than 1.4 million shares, Cantillon Capital Management was the company’s leading stakeholder in Q4.

3. Cable One, Inc. (NYSE:CABO)

Upside Potential as of April 15: 58.2%

Cable One, Inc. (NYSE:CABO) is next on our list of the best dividend stocks to buy now. The Arizona-based cable television company declared a quarterly dividend of $2.95 per share, which fell in line with its previous dividend. Overall, the company has grown its dividends for nine years in a row. The stock has a dividend yield of 3.03%, as of April 15.

The number of hedge funds tracked by Insider Monkey owning stakes in Cable One, Inc. (NYSE:CABO) grew to 28 in Q4 2023, from 25 in the preceding quarter. The overall value of these stakes is more than $211 million.

2. Borr Drilling Limited (NYSE:BORR)

Upside Potential as of April 15: 70.9%

Borr Drilling Limited (NYSE:BORR) is a drilling oil and gas wells company, based in Bermuda. The company offers a wide range of drilling services to the oil and gas industries. It initiated its dividend policy in December 2023 and currently offers a quarterly dividend of $0.05 per share, supporting a dividend yield of 1.72%, as of April 15. With an upside potential of nearly 71%, BORR is one of the best dividend stocks on our list.

Insider Monkey’s database of Q4 2023 indicated that 14 hedge funds held stakes in Borr Drilling Limited (NYSE:BORR), the same as in the previous quarter. These stakes have a total worth of nearly $100 million. Among these hedge funds, Orbis Investment Management owned the largest position in the company in Q4.

1. Gray Television, Inc. (NYSE:GTN)

Upside Potential as of April 15: 109.1%

With an upside potential of over 109%, Gray Television, Inc. (NYSE:GTN) tops our list of the best dividend stocks to buy now. The American television broadcasting company’s quarterly dividend currently comes in at $0.08 per share. The stock has a dividend yield of 5.68%, as of April 15. GTN is also among the underperforming stocks insiders are buying.

As of the close of the December quarter of 2023, 23 hedge funds in Insider Monkey’s database reported having stakes in Gray Television, Inc. (NYSE:GTN), up from 21 in the previous quarter. The collective value of these stakes is over $135.5 million.

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