Amidst a volatile stock market characterized by inflation concerns, high interest rates, geopolitical issues, and rising commodity costs, dividend-paying stocks present an opportunity for investors to secure higher yields and potentially mitigate market fluctuations.
In this favorable market environment, with corporations holding record cash on their balance sheets and low payout ratios, the potential for dividend growth is significant. Global dividend payouts have reached a record high, and U.S. dividends have been rising steadily since 2011, even through the pandemic.
Seeking Alpha’s Quant Dividend Grading System can help investors identify stocks with robust dividend strength and growth potential. This system assesses nearly all U.S. securities with dividends, utilizing metrics such as payout ratios, dividend coverage ratios, and profitability metrics to flag potential dividend risks.
Our Quant Dividend Growth grade evaluates stocks based on dividend growth metrics relative to their peer sector. By leveraging this system, we have compiled a list of ten high-yield dividend stocks with strong investment fundamentals and favorable Quant Ratings:
1.
NewLake Capital Partners, Inc. (OTCQX:NLCP)
– Forward Dividend Yield: 9.29%
– Dividend Growth Rate 3Y (CAGR): –
– Dividend Safety Grade: A+
– Dividend Growth Grade: C
– Market Capitalization: $384.63M
– Quant Rating: Strong Buy
2.
Prudential Financial, Inc. (PRU)
– Forward Dividend Yield: 4.70%
– Dividend Growth Rate 3Y (CAGR): 4.31%
– Market Capitalization: $39.75B
– Dividend Safety Grade: A
– Dividend Growth Grade: A
– Quant Rating: Strong Buy
3.
Innovative Industrial Properties, Inc. (IIPR)
– Forward Dividend Yield: 7.73%
– Dividend Growth Rate 3Y (CAGR): 16.5%
– Market Capitalization: $2.67B
– Dividend Safety Grade: A-
– Dividend Growth Grade: B+
– Quant Rating: Strong Buy
4.
ONEOK, Inc. (OKE)
– Forward Dividend Yield: 4.97%
– Dividend Growth Rate 3Y (CAGR): 1.01%
– Market Capitalization: $44.99B
– Dividend Safety Grade: B+
– Dividend Growth Grade: B
– Quant Rating: Buy
5.
FirstEnergy (FE)
– Forward Dividend Yield: 4.45%
– Dividend Growth Rate 3Y (CAGR): 0.85%
– Market Capitalization: $21.97B
– Dividend Safety Grade: B
– Dividend Growth Grade: B-
– Quant Rating: Buy
6.
Conagra Brands, Inc. (CAG)
– Forward Dividend Yield: 4.57%
– Dividend Growth Rate 3Y (CAGR): 12.28%
– Market Capitalization: $14.64B
– Dividend Safety Grade: B-
– Dividend Growth Grade: B+
– Quant Rating: Buy
7.
Tyson Foods, Inc. (TSN)
– Forward Dividend Yield: 3.27%
– Dividend Growth Rate 3Y (CAGR): 3.89%
– Market Capitalization: $20.72B
– Dividend Safety Grade: B-
– Dividend Growth Grade: B
– Quant Rating: Strong Buy
8.
The Coca-Cola Company (KO)
– Forward Dividend Yield: 3.22%
– Dividend Growth Rate 3Y (CAGR): 4.17%
– Market Capitalization: $259.40B
– Dividend Safety Grade: B
– Dividend Growth Grade: A+
– Quant Rating: Strong Buy
9.
Kinder Morgan, Inc. (KMI)
– Forward Dividend Yield: 6.10%
– Dividend Growth Rate 3Y (CAGR): 2.48%
– Market Capitalization: $41.81B
– Dividend Safety Grade: C+
– Dividend Growth Grade: C+
– Quant Rating: Buy
10.
Ardmore Shipping Corporation (ASC)
– Forward Dividend Yield: 5.73%
– Dividend Growth Rate 3Y (CAGR): –
– Market Capitalization: $659.57M
– Dividend Safety Grade: B-
– Dividend Growth Grade: A+
– Quant Rating: Strong Buy
Seeking Alpha’s High Dividend Yield stock screener can assist in identifying additional dividend opportunities, showcasing stocks with yields exceeding 6% and Strong Buy or Buy Quant Ratings. Alternatively, investors can refine their search using criteria such as dividend grade and other metrics to pinpoint stocks at risk of dividend cuts.
In conclusion, with global dividend payments reaching record levels and companies maintaining strong cash positions, this is a favorable time for investors to consider dividend investments. Dividends with solid growth and safety characteristics can bolster long-term portfolios and mitigate the effects of inflation and market volatility.
