profit dial knob set to high

Top 3 High-Yield Stocks with Strong Analyst Ratings

profit dial knob set to high

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

 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. 

Upbound Group UPBD stock chart

Atlas Energy Can Set a New High Soon

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. 

Atlas Energy AESI stock chart

Copa: The Only Airline You Need To Own

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. tracks four revisions that are leading the market above the consensus, which offers a substantial 60% upside.

Copa CPA stock chart

Learn more about AESI

Newest Stories

microsoft logo on smartphone 100 bills in backgroud
6 Reasons the S&P 500 Will Keep Rising This Year

The S&P 500 (NYSEARCA: SPY) index can keep rising this year even if many stocks within it don’t. The reasons are simple and center around the top six holdings. The S&P 500 is a market cap-weighted index, meaning those companies with the highest market cap have the most impact, and wh...

Thomas Hughes | Jun 18, 2024

Cava Group, Inc. logo is displayed on a smartphone screen
CAVA's Per-Restaurant Stock Value Outshines Chipotle's

Markets are now looking more into shares of CAVA Group Inc. (NYSE: CAVA), not because it’s small but because it’s growing. Most seeking consumer discretionary sector opportunities may try to copy one of Wall Street’s sweethearts: Bill Ackman. Through his hedge fund, Pershing Squa...

Gabriel Osorio-Mazilli | Jun 18, 2024

Upstart logo is displayed on a smartphone screen
The Most Shorted Stocks in June: Hold, Short, or Squeeze?

Short interest is high and rising in many stocks, setting them up for a squeeze given the proper catalyst. The catalyst for a squeeze could be as simple as Meme stock mania and result in quick gains for savvy investors. The question is which meme stocks are ripe for squeezing and how likely a sque...

Thomas Hughes | Jun 18, 2024

Stethoscope on a stock chart
Top 2 Small Cap Healthcare Stocks to Buy Before Rate Cuts

Will the market get interest rate cuts at all this year? That is the question that looms over most investors’ shoulders today. However, there aren’t many reasons for the Federal Reserve (the Fed) to consider cutting rates. With sticky inflation and a hotter-than-expected labor market, ...

Gabriel Osorio-Mazilli | Jun 18, 2024

TickerTalk Unveils Real-Time Financial Insights and Breaking News!