5 Most Promising Dividend Stocks According to Analysts

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

5. BP p.l.c. (NYSE:BP)

Upside Potential as of December 20: 29.6%

BP p.l.c. (NYSE:BP) is a multinational oil and gas company engaged in various aspects of the energy industry. The company offers a dividend of $0.4362 per American Depositary Share (ADS), for a dividend yield of 4.78%, as of December 24. It is one of the most promising stocks on our list as the company has been paying regular dividends to shareholders since 1998.

BP p.l.c. (NYSE:BP) was a part of 35 hedge fund portfolios at the end of Q3 2023, compared with 36 in the previous quarter, according to Insider Monkey’s database. The consolidated value of these stakes is over $2.05 billion. With over 18.3 million shares, Fisher Asset Management was the company’s leading stakeholder in Q3.

4. Archer-Daniels-Midland Company (NYSE:ADM)

Upside Potential as of December 20: 30.7%

Archer-Daniels-Midland Company (NYSE:ADM) operates as a global food processing and commodities trading corporation. The company has raised its dividends for 50 years straight and currently offers a quarterly dividend of $0.45 per share. With a dividend yield of 2.49%, as of December 24, ADM is one of the most promising stocks on our list.

The number of hedge funds tracked by Insider Monkey owning stakes in Archer-Daniels-Midland Company (NYSE:ADM) grew to 37 in Q3 2023, from 32 in the preceding quarter. These stakes are collectively valued at more than $769 million.

3. Energy Transfer LP (NYSE:ET)

Upside Potential as of December 20: 33.2%

Energy Transfer LP (NYSE:ET) is a Texas-based company that is involved in the transportation and storage of natural gas, crude oil, and refined products. The company maintains an eight-year streak of consistent dividend growth, which makes ET one of the most promising stocks on our list. It currently pays a quarterly dividend of $0.3125 per share and has a dividend yield of 9.04%, as recorded on December 24.

As per Insider Monkey’s database of Q3 2023, 34 hedge funds owned stakes in Energy Transfer LP (NYSE:ET), which remained the same as in the previous quarter. The overall value of these stakes is over $803.2 million. Among these hedge funds, Abrams Capital Management was the company’s leading stakeholder in Q3.

2. Marathon Oil Corporation (NYSE:MRO)

Upside Potential as of December 20: 33.4%

An American energy company, Marathon Oil Corporation (NYSE:MRO) is next on our list of the most promising stocks that pay dividends. The company offers a quarterly dividend of $0.11 per share, having raised it by 10% in October this year. In the past five years, it has raised its payouts at an annual average rate of 15.44%. As of December 24, the stock has a dividend yield of 1.74%.

At the end of Q3 2023, 45 hedge funds in Insider Monkey’s database reported having stakes in Marathon Oil Corporation (NYSE:MRO), up from 43 in the previous quarter. The collective value of these stakes is over $956.6 million.

1. Bunge Global SA (NYSE:BG)

Upside Potential as of December 20: 35.2%

Bunge Global SA (NYSE:BG) operates as an independent exploration and production company within the energy industry. The company froze its quarterly payout at $0.50 per share from 2018 to 2020, however, it has raised its dividends thrice since then. It currently pays a quarterly dividend of $0.6625 per share and has a dividend yield of 2.59%, as recorded on December 24.

As of the end of Q3 2023, 31 hedge funds tracked by Insider Monkey reported owning stakes in Bunge Global SA (NYSE:BG), compared with 36 in the preceding quarter. The consolidated value of these stakes is over $210 million.

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