In this article, we will be taking a look at 5 extreme dividend stocks with upside potential. To read our detailed analysis of dividend investing, you can go directly to see the 10 Extreme Dividend Stocks With Upside Potential.
5. Iron Mountain Incorporated (NYSE:IRM)
Number of Hedge Fund Holders: 16
Dividend Yield: 5%
Iron Mountain Incorporated (NYSE:IRM), a real estate investment trust, is next on our list of extreme dividend stocks with upside potential, harboring a dividend yield of 5%. The company hosts a real estate network of over 90 million square feet in about 50 countries.
Barclays’ Brendan Lynch initiated coverage of Iron Mountain Incorporated (NYSE:IRM) shares this June, with an Overweight rating and a $58 price target indicating a promising upside.
The company’s EPS in the fiscal first quarter of 2022 was $0.7, and its revenue was $1.3 billion. The revenue beat estimates by $12.8 million.
There were 16 hedge funds long Iron Mountain Incorporated (NYSE:IRM) in the first quarter of 2022, with a total stake value of $61.2 million.
4. Verizon Communications Inc. (NYSE:VZ)
Number of Hedge Fund Holders: 69
Dividend Yield: 5%
Verizon Communications Inc. (NYSE:VZ) is a communications services company offering information, communications, and entertainment products and services to consumers globally. The company benefits from an 18-year streak of dividend increases, making it one of the sturdier extreme dividend stocks with upside potential.
Dougal Mitchelson, an analyst at Credit Suisse, holds a Neutral rating on Verizon Communications Inc. (NYSE:VZ) shares as of this June, alongside a $54 price target.
Verizon Communications Inc. (NYSE:VZ) had an EPS of $1.4 in the fiscal first quarter of 2022, beating estimates by $0.03. The company’s revenue was $33.6 billion, also beating estimates by $1.7 billion.
Out of 912 hedge funds, 69 hedge funds were long Verizon Communications Inc. (NYSE:VZ) in the first quarter of 2022, while 63 hedge funds were long the stock in the previous quarter. Their total stake values were $4.1 billion and $10.9 billion respectively.
3. American Eagle Outfitters, Inc. (NYSE:AEO)
Number of Hedge Fund Holders: 27
Dividend Yield: 5.6%
American Eagle Outfitters, Inc. (NYSE:AEO) is a specialty retailer offering clothing, accessories, and personal care products under two brands: American Eagle and Aerie. This May, Corey Tarlowe, an analyst at Jefferies Financial Group, indicated that the company’s shares harbored an upside potential of 132%, making it one of the best extreme dividend stocks with upside potential.
Deutsche Bank analyst Gabriella Carbone holds a Buy rating on American Eagle Outfitters, Inc. (NYSE:AEO) shares as of this May.
UBS analyst Jay Sole also noted this June that American Eagle Outfitters, Inc. (NYSE:AEO) is underappreciated in the retail sector at present. The bank’s channel checks revealed that the company ranks fourth in non-athletic wear brands on the basis of aided and unaided awareness. UBS continues to hold its Buy rating on its shares.
In the first quarter of 2022, 27 hedge funds held stakes in American Eagle Outfitters, Inc. (NYSE:AEO). Their total stake value was $633 million.
2. Innovative Industrial Properties, Inc. (NYSE:IIPR)
Number of Hedge Fund Holders: 15
Dividend Yield: 5.9%
Innovative Industrial Properties, Inc. (NYSE:IIPR) is an industrial real estate investment trust focused on acquiring, owning, and managing specialized properties used for regulated medical-use cannabis facilities. The company was said to have an upside potential of 101%, according to BTIG analyst Thomas Catherwood this May. As such, it is among the top extreme dividends stocks with upside potential with its 5.9% yield.
Craig-Hallum’s Eric Des Lauriers upgraded Innovative Industrial Properties, Inc. (NYSE:IIPR) shares from Hold to Buy this May, while placing a $175 price target on the company’s shares.
The analyst also noted that Innovative Industrial Properties, Inc. (NYSE:IIPR) has outperformed its peers by 76% to 126% in the last three years.
Innovative Industrial Properties, Inc. (NYSE:IIPR) had 15 hedge funds holding stakes in the company in the first quarter of 2022, with a total stake value of $311 million. In comparison, 13 hedge funds were long the stock in the previous quarter, with a total stake value of $273 million.
1. Arbor Realty Trust, Inc. (NYSE:ABR)
Number of Hedge Fund Holders: 14
Dividend Yield: 10.7%
Arbor Realty Trust, Inc. (NYSE:ABR) is yet another real estate investment trust on our list of extreme dividend stocks with upside potential. The company invests in a diversified portfolio of structured finance assets in the US.
Piper Sandler analyst Crispin Love holds an Overweight rating on Arbor Realty Trust, Inc. (NYSE:ABR) as of this April, alongside a $20 price target.
Arbor Realty Trust, Inc. (NYSE:ABR) had an EPS of $0.4 in the fiscal first quarter of 2022. Its revenue was $84.1 million, beating estimates by $17,200.
There were 14 hedge funds long Arbor Realty Trust, Inc. (NYSE:ABR) in the first quarter of 2022, with a total stake value of $92.5 million.
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