The 5 best high-yield dividend stocks for exceptional growth potential

The word Dividends and dollar bills.  Approach.

Key points

  • Marketbeat’s screener of top-rated dividend stocks is a good place to look for new income investments.
  • Stocks are ranked by the Marketbeat.com platform, which tracks analyst sentiment and dividend health.
  • The five stocks on this list pay reliable dividends, have double-digit upside potential, and are rated with Buy consensus.
  • 5 stocks we like best from Upbound Group

Dividend stocks are a dime a dozen, so it’s important to weed out the good from the bad. Among the many ways to filter dividend stocks is to follow the money, which means analysts. This is a look at the five most popular dividend stocks, according to analysts tracked by Marketbeat.com. What does top-rated mean? Marketbeat.com tracks terabytes of data, including analyst sentiment and dividend statistics, and aggregates the data into actionable insights.

The top-rated dividend stock screener filters stocks covered by at least five analysts and ranks them based on sentiment. The highest possible rating is 4.0, which indicates 100% Buy ratings over the past twelve months. Stocks on this list score at least 3.0 and have a minimum upside potential of 10% and a yield of 2%.

Copa Holdings, S.A. is a high-yield value analyst like

Copa Holdings, SA NYSE: CPA is a small airline operating in Latin America. Its business is booming, with passenger and cargo demand supporting growth. It has the highest rating among dividend-paying stocks with a Marketbeat.com rating of 3.5. Six analysts are covering the stock and rate it a Strong Buy and consider it deeply undervalued.

The consensus target implies an upside above 40%, while the lower end of the range is 25%. Recent highlights include a 17% increase in capacity in February, compounded by a complimentary increase in passenger miles. The next significant catalyst for the share price will be the release of results in May. Analysts expect a slight decline in revenues, which is unlikely given the trend.

CPA stock chart

Kemper Corporation analysts assure that higher prices will come

Kemper Company New York Stock Exchange: KMPR he struggled in 2022 and 2023, but those days are over. The latest results show that the return to profitability is gaining ground and that a return to growth is expected for the next fiscal year. The balance sheet is also in good shape and suggests that dividend payouts will continue. The yield isn’t high at 2.0%, but it’s market-beating the S&P 500, and analysts are buying it.

Analyst revisions have increased the Buy consensus sentiment over the trailing twelve months and the price target by 500 basis points. This stock, like COPA, is undervalued, with the market below analysts’ lowest forecasts. The lower end of the analyst range suggests an upside of around 1000 basis points, while the consensus is closer to 20%. Marketbeat’s analyst rating for this stock is 3.17.

KMPR stock chart

Kimbell Royalty Partners is a really good performer

Kimbell Royal Partners New York Stock Exchange: KRP is a Texas-based limited partnership focused on mineral rights and royalties for oil and natural gas properties. The units yield more than 10% at current levels and look sustainable into 2024. According to the latest report, the payout to distributable cash ratio is nearly 75%, with the remaining 25% earmarked for debt reduction. Analysts rate the stock a Buy, Stable over the past year, with a price target of $21. The consensus target is also steady and 35% higher than the current price movement. Like others on this list, the low end suggests deep value with at least 20% upside.

Atlas Energy Solutions builds a solid foundation in the sand

Atlas Energy Solutions NYSE: AESI is a leading provider of oilfield services that supply sand to frackers. Sand is used to keep cracks open for oil recovery and is critical to the process. Atlas stands out with its rock-solid profits, cash flow and dividends. The 2.95% yield is below 30% of earnings, with revenue growth and margin expansion expected to come. Analysts rate this stock a Buy and see it advancing more than 2% at the low end of their range, around 12% consensus, which is trending higher.

AESI stock chart

The rising group has yield and analyst support

Group uphill NASDAQ: UPBD is a rent-to-own provider with brands like Rent-a-Center in its portfolio. The company has returned to growth and provides solid cash flow, aiding capital returns. The dividend is worth 4.25%, with shares trading around $35 and the payout representing just 38% of earnings. The analysts’ activity predicts numerous upgrades in the last twelve months, raising the rating from Hold to Buy and increasing the price target by 35%. The consensus implies a slight upside of 10%, but the trend is up and leading the market.

UPBD stock chart

Before you consider Upbound Group, you’ll want to hear this.

MarketBeat tracks daily Wall Street’s highest-rated and best-performing research analysts and the stocks they recommend to their clients. MarketBeat identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market takes hold… and Upbound Group wasn’t on the list.

While Upbound Group currently has a “buy” rating among analysts, top analysts believe these five stocks are better buys.

View the five stocks here

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