Investors looking for passive income often target public enterprises, but this sector can become overcrowded. To find better deals, it’s essential to focus on overlooked dividend stocks. These less-appreciated ideas can offer a mix of passive income and potential capital gains that may not be readily available with popular stocks.
One such overlooked dividend stock is Delta Air Lines (DAL). Despite being a major carrier frequently in the news, DAL stock has been struggling since mid-May, making it a potential opportunity for investors. With the consumer economy facing challenges, it’s worth noting the concept of travel prioritization and how it could impact Delta’s demand profile.
Urban Edge Properties (UE) is another overlooked dividend stock to consider. As a real estate investment trust focused on retail properties in urban communities, UE could benefit from the increase in payrolls and high-income communities in its target corridor. The company offers a forward yield of 3.76%, making it an attractive option for passive income seekers.
In the travel services space, Travel + Leisure (TNL) operates with a focus on vacation ownership and travel products. While the business model caters to a more affluent consumer base, it presents risks alongside potential rewards. TNL offers a forward yield of 4.62% and analysts anticipate a sales bump of 4.2% by the end of the year.
GeoPark (GPRK), an oil and gas exploration and production company based in Colombia, operates in relatively friendly jurisdictions. Despite soft earnings performances in the past, GPRK offers a forward yield of 5.51% and analysts expect EPS to rise by 4.1% in fiscal 2024.
Global Ship Lease (GSL) falls under the rental and leasing services ecosystem, owning and chartering containerships under fixed-rate contracts. With optimistic views on the post-pandemic recovery, GSL stock could be an interesting choice for investors. The company offers a forward yield of 5.52% and a low payout ratio of 17.4%.
Opera (OPRA) operates in the Internet content and information industry, providing web browsers and related products and services. With generative AI becoming increasingly important, Opera could leverage this technology for practical applications. OPRA stock trades at a low multiple of trailing-year sales and offers a robust forward yield of 6.24%.
Dine Brands (DIN) operates in the restaurant industry, owning and operating restaurants like IHOP and Applebee’s. While the consumer discretionary segment is tricky, a healthy labor market could benefit DIN’s target demographic. DIN stock offers a forward yield of 6.34% for investors willing to take the risk.
In conclusion, overlooked dividend stocks offer opportunities for investors to diversify their portfolios and potentially earn passive income. By considering these less-appreciated ideas, investors can take a holistic approach to the market and potentially snag better deals.