For me, it’s puzzling that some investors avoid dividend stocks. While they may not be the most glamorous, the combination of yields and potential returns can make them a valuable addition to any portfolio. As a devoted fan of dividend stocks, I’m always on the lookout for high-yield growth opportunities.
To compile my list, I looked for stocks that met specific criteria:
– Dividend yields of over 7%
– Strong buy ratings from analysts
– Coverage by at least 8 analysts
– More than 20% upside potential based on high target prices
I focused on finding the best of the best in high-yield growth stocks, so my criteria were strict. Fortunately, my search yielded some excellent results, which I’ve listed below based on dividend yields.
Let’s start with the top contender:
Civitas Resources (CIVI) is an oil and natural gas exploration and production company with a focus on sustainable operations in Colorado and Texas. The company has been paying extra dividends since 2022, with a current trailing twelve-month dividend yield of 9.10%. While these extra dividends can fluctuate, the company’s recent acquisitions could lead to increased revenue.
Energy Transfer LP (ET) is a midstream service provider known for its diverse energy assets. The company has been increasing its dividends and reported solid financials in Q1’24. With a dividend yield of 7.83% and a high target price reflecting a 48% upside potential, ET is a strong buy according to 14 analysts.
Enterprise Products Partners LP (EPD) operates as a midstream energy service provider, offering a range of services to the natural gas and petrochemical industries. The company reported a 5% increase in EPS YOY and a net income growth in Q1’24. With an annualized dividend yield of 7.11% and a consensus among 16 firms giving it a strong buy rating, EPD is another top pick.
In conclusion, dividend stocks may not always grab headlines, but their combination of yields and growth potential can make them valuable assets in any portfolio. As always, it’s essential to do your research and consider your investment goals before diving into any stock.