Entering the tumultuous realm of stock trading and options since the heyday of the Netscape IPO has imbued me with a profound realization: the myth that “Dividend investing is boring” is a misnomer.
While tech stocks flaunt massive, triple-digit price oscillations, treading these waters poses titanic risks for investors shackled by imperfect timing or swayed by FOMO.
Contrastingly, dividend stocks boasting a 20% annual growth promise a colossal doubling of your investment in a mere five years. Pair this with unwavering dividend payouts, and your portfolio stands to witness commendable growth over the long haul.
Today, we venture forth to explore the realm of elite dividend stocks boasting at least 30% potential for exponential growth, a domain ripe with promise.
Shrewd Screening for Prime Dividend Stocks
Guided by the notion to unearth the crème de la crème of dividend stocks, I steered away from customary watchlists and delved into the vast expanse of the stock market. A rigorous trawl encompassing NYSE, AMEX, NASDAQ, the Over-The-Counter landscape, and even the enigmatic non-common stocks led me to Barchart’s Screen feature.
Encompassing a myriad of technical and fundamental metric filters, this traversal was meticulously curated using the following criteria:
- CURRENT ANALYST RATINGS — 4.5 and above (Strong Buy Recommendation)
- NUMBER OF ANALYSTS — 16 and above (Very High)
- ANNUAL DIVIDEND YIELD (%) — 4.5% and above (High to Very High)
Post-setting the filters ablaze, a flicker of brilliance illuminated my screen, unearthing four illustrious companies from a myriad of US-listed stocks. Ensuring that only companies brandishing more than 30% upside potential were part of the sanctum.
Let’s embark upon a journey through the top three, presented in ascending order of yields.
Diamondback Energy (FANG)
Perching gallantly in the echelons of the corporate domain is Diamondback Energy, sporting a rugged visage intertwined with independent oil and natural gas mastery nestled predominantly in the revered Permian Basin. This stalwart is fervently engaged in the acquisition, development, and exploration of oil and natural gas reserves. The tendrils of Diamondback extend to mineral interests in the Permian Basin via its subsidiary, Viper Energy.
Announcements heralding Diamondback’s Q1FY’24 outcomes have been bestowed upon the eager masses. Total revenue unfurled its wings, soaring to $2.23 billion, a 16% year-over-year crescendo. Basic EPS was not to be outdone, ascending from $3.88 to $4.28.
In the embrace of Q1’24, the behemoth dealt a hand, proffering 90 cents in base dividends and a $1.07 dividend variable, sumptuously totaling $1.97. Albeit the tempestuous variable dividend, Diamondback’s annual disbursement dances on the winds of change, rendering forward yields a nebulous pursuit. Yet, on a trailing twelve-month delineation, the entity brandishes a $9.26 annual rate, effusing a 4.69% yield. A veritable acclaim ensues with an average score of 4.71 curated by 24 astute analysts, earmarking a 33% upside predicated on its stellar $263 high target price.
Vici Properties Inc (VICI)
Buoyed by the echelons of premium dividend stocks, Vici Properties basks in the limelight once more, flaunting a bevy of hospitality and entertainment enclaves that house the illustrious Caesars Palace, MGM Grand, and the majestic Venetian Resort in the resplendent Vegas milieu.
Wave upon wave of accolades herald the advent of Vici’s Q1’24 revelations, casting a favorable gaze upon the horizon as total revenue orchestrates an 8.4% year-over-year opus while adjusted funds from operations per share exhibit a graceful 6.1% crescendo. Following this harmonious crescendo of success, the entity reaffirms its rhapsodic 2024 full-year prognosis.
Bedazzled by the tapestry of Vici’s ascent, a noteworthy 4.67 average score bedecks its stature, meticulously penned by 21 perspicacious analysts. An ethereal 53.24% upside beckons, guided by the lighthouse that is Vici’s $43 lofty target price. In the corridors of dividends, whispers of a $1.66 yearly offering echo, resonating a resounding 5.91% yield. Keep vigil, for during the September enunciation, Vici traditionally embellishes its dividends, an event that summons anticipation.
Enterprise Products Partners LP (EPD)
Adorned atop this illustrious trinity rests Enterprise Products, a salient gem meticulously chiseled into the annals of not just the best dividend stocks, but also a fledgling member of the Dividend Aristocrat realm, albeit on unofficial grounds until the S&P deems fit to christen or recalibrate the Aristocrat Index.
Embodied as a midstream energy service, Enterprise Products orchestrates a ballet of gathering, transporting, and storing natural gas, crude oil, refined products, and petrochemicals, deftly bridging producers with consumers. Seasoned by a meager growth spurt across paramount financial metrics in Q1FY’24, the company etches its progress across operating income, net income, and diluted EPS.
Brandishing an alluring $2.06 forward annual dividend rate, EPD emerges as an illustrious stalwart, unfurling a captivating 7.32% yield. A testament to its mettle, EPD cascades dividends for 25 consecutive years, embellishing its laurels with four dividend increments within the past biennium. Basking in the limelight, 17 sagacious analysts impart an average score of 4.65 while boding a 32% upward trajectory steered by its lofty $37 apex target price.
In Conclusion
“Safe” need not connote banality or sluggish momentum, as evidenced by these luminary dividend stocks. For those who find solace in the thrill of income investing, a pantheon awaits. Should this path be untrodden by your feet, mayhaps seek refuge within the confines of your risk tolerance. Nonetheless, should the siren call of safety herald an enticing lilt, these three behemoths are poised to unfurl a tapestry of safe havens amidst the tumultuous seas of investment, promising bountiful returns.