Dividend stocks are among the most attractive on Wall Street because they pay you to own them. However, not all dividend stocks are equal, so it takes more than a distribution and some attractive metrics to make them a good buy. This is a look at three dividend stocks that also get high ratings from analysts. They are ranked highly on MarketBeat’s Top Rated Dividend Stocks list because of their safe payments and analysts’ sentiment. All come with a rating of 3.0 or higher, which equates to a Buy or Better rating, have an outlook for at least a double-digit upside, and pay market-beating yields. This combination can deliver market-beating total returns for investors.
Upbound Group: A High-Yielding Deep Value
(As of 06/11/2024 ET)
- 52-Week Range
- $25.00
▼
$36.17
- Dividend Yield
- 4.58%
- Price Target
- $39.14
Upbound Group NASDAQ: UPBD is a deep value for investors, trading at only 8.75x earnings. Sentiment is firm, and the consensus price target, which implies a 20% upside, is rising. The latest update comes from BTIG, which initiated at Buy and set its target at $45, setting a new high-end for the market.
The Buy-rated stock has come under pressure this year but shows solid support at the low end of the analysts’ range, which investors can assume is the price floor. Among the market drivers are the company’s recent outperformance, return to growth, cash flow, and outlook. The outlook includes persistent growth and margin expansion.
Capital returns from Upbound Group are robust. The dividend, which is only 40% of this year’s earnings outlook, runs about 4.5% in yield, with shares at the low end of their trading range. The distribution growth is erratic but present, so investors may expect another increase this year or early 2025. The balance sheet is healthy, with low leverage near 2x equity, allowing for share repurchases. The share count is down about 1% on average at the end of FQ1 and should continue to fall this year.
Atlas Energy Can Set a New High Soon
Atlas Energy Solutions
(As of 06/11/2024 ET)
- 52-Week Range
- $15.55
▼
$24.93
- Dividend Yield
- 3.04%
- P/E Ratio
- 11.71
- Price Target
- $26.00
Buy-rated Atlas Energy Solutions NYSE: AESI yields an attractive 3.5% and provides value at 9.5x earnings. The company serves the oilfield industry in the Permian Basin and Texas, providing mesh and sand for the well-completion process. In business since 2017, the company has been growing in leaps and bounds while profiting for investors. Among the latest earnings report details are 25% top-line growth offset by margin compression. However, the margin compression is due to accretive acquisition and business investment already paying off by improving scale and leverage.
The Q1 report led two analysts to revise their targets higher. The two new targets are above the consensus, leading the market to the high end of the range, which would be a new all-time high. Regardless, the consensus estimate is worth an 18% upside and a new all-time high.
The balance sheet highlights an increase in debt and liabilities offset by increased receivables, inventory, property, and goodwill, which has left equity up. Leverage is slightly elevated at 4x equity, but this is not a red flag considering the cause. The company’s acquisitions of Hi-Crush and investment in the Dune Express will quickly improve revenue, cash flow, earnings, and leverage. The Dune Express will be a game changer for the company, improving efficiency, safety, and emissions.
Copa: The Only Airline You Need To Own
(As of 06/11/2024 ET)
- 52-Week Range
- $78.12
▼
$121.20
- Dividend Yield
- 6.74%
- P/E Ratio
- 6.87
- Price Target
- $154.43
Copa NYSE: CPA isn’t the largest airline in the world, but its valuation, yield, outlook, and analyst sentiment make it the best in breed for the sector. The company is focused on the rapidly growing and gentrifying Latin American market, helping it sustain growth, widen margins and pay dividends. This stock carries the highest rating and yield of any on this list, 3.25 and 5.1%, making it an attractive high-yield play across industries and sectors.
The latest earnings report spurred the analysts to raise their targets. MarketBeat.com tracks four revisions that are leading the market above the consensus, which offers a substantial 60% upside.
While Atlas Energy Solutions currently has a “Buy” rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
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