5 Extreme Dividend Stocks With Upside Potential

In this article, we discuss 5 extreme dividend stocks with upside potential. If you want to read our detailed analysis of dividend stocks and their historical performance, go directly to read 11 Extreme Dividend Stocks With Upside Potential. 

5. Pioneer Natural Resources Company (NYSE:PXD)

Upside Potential as of March 21: 34.7%
Dividend Yield as of March 21: 14.17%

Pioneer Natural Resources Company (NYSE:PXD) is a Texas-based company that is engaged in hydrocarbon exploration. The company currently pays a quarterly dividend of $5.58 per share and has a dividend yield of $14.17%, as of March 21. It is one of the best dividend stocks on our list as it has raised its payouts for four years in a row.

After the company announced its Q4 earnings, Barclays maintained an Overweight rating on Pioneer Natural Resources Company (NYSE:PXD) in March, with a $275 price target.

In the fourth quarter of 2022, Pioneer Natural Resources Company (NYSE:PXD) generated over $5 billion in revenue, up 18% from the same period last year. The company’s free cash flow for FY22 came in at $8.4 billion and returned $8 billion to shareholders in dividends.

The number of hedge funds tracked by Insider Monkey owning stakes in Pioneer Natural Resources Company (NYSE:PXD) grew to 55 in Q4 2022, from 49 a quarter earlier. These stakes have a collective value of roughly $842 million.

4. Genco Shipping & Trading Limited (NYSE:GNK)

Upside Potential as of March 21: 47.06%
Dividend Yield as of March 21: 12.79%

Genco Shipping & Trading Limited (NYSE:GNK) is an American dry bulk shipping company that mainly provides transportation services. Fearnley upgraded the stock to Buy in January and also lifted its price target on the stock to $22. The firm highlighted the company’s strong dividend yields and current valuations.

Genco Shipping & Trading Limited (NYSE:GNK), one of the best dividend stocks, started paying dividends to shareholders in 2019 and has paid regular dividends since then. Moreover, it has raised its quarterly dividend from $0.02 per share in 2021 to $0.78 per share in 2022. The stock’s dividend yield on March 21 came in at 12.79%.

According to Insider Monkey’s database for Q4 2022, 16 hedge funds owned stakes in Genco Shipping & Trading Limited (NYSE:GNK), the same as in the previous quarter. The collective value of these stakes is over $54 million.

3. Lincoln National Corporation (NYSE:LNC)

Upside Potential as of March 21: 48.4%
Dividend Yield as of March 21: 8.01%

Lincoln National Corporation (NYSE:LNC) is an American insurance company that also operates several investment management businesses. JPMorgan gave a skeptical stance on the insurance sector in January and believes that the sector could perform well if interest rates continue to increase. In view of this, the firm maintained its Neural rating on LNC with a $36 price target.

Lincoln National Corporation (NYSE:LNC) is one of the best dividend stocks on our list as its dividend growth streak stands at 11 years. The company offers a quarterly dividend of $0.45 per share and has a dividend yield of 8.01%, as of March 21.

As of the close of Q4 2022, 36 hedge funds tracked by Insider Monkey reported having stakes in Lincoln National Corporation (NYSE:LNC), worth roughly $505 million collectively. With over 3.3 million shares, Lyrical Asset Management was the company’s leading stakeholder in Q4.

2. Innovative Industrial Properties, Inc. (NYSE:IIPR)

Upside Potential as of March 21: 73.43%
Dividend Yield as of March 21: 9.01%

Innovative Industrial Properties, Inc. (NYSE:IIPR) is a California-based real estate investment trust company that provides capital for the medical-use cannabis industry. The company saw a growth in hedge fund positions in Q4 2022, as 14 funds in Insider Monkey’s database owned stakes in the company, up from 12 in the previous quarter. These stakes have a consolidated value of over $298.7 million.

On March 15, Innovative Industrial Properties, Inc. (NYSE:IIPR) declared a quarterly dividend of $1.80 per share, which was consistent with its previous dividend. The company has raised its dividend every year since the initiation of its dividend policy in 2017. The stock has a dividend yield of 9.01%, as of March 21.

Craig-Hallum maintained a Buy rating on Innovative Industrial Properties, Inc. (NYSE:IIPR) in March with a $125 price target.

1. Medical Properties Trust, Inc. (NYSE:MPW)

Upside Potential as of March 21: 73.44%
Dividend Yield as of March 21: 14.45%

An Alabama-based real estate investment trust company, Medical Properties Trust, Inc. (NYSE:MPW) tops our list of the best dividend stocks. The company currently offers a quarterly dividend of $0.29 per share for a dividend yield of 14.45%, as of March 21. It has been raising its dividends consistently for the past nine years.

Medical Properties Trust, Inc. (NYSE:MPW) remained popular among hedge funds in Q4 2022 with 28 funds in Insider Monkey’s database owning stakes in the company, up from 23 in the previous quarter. These stakes are valued at $367.5 million collectively.

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