Missed the Rally? These 3 Dividend Stocks Could Still Explode Higher

Bull on Wall Street by Alexander Naumann via Pixabay
Bull on Wall Street by Alexander Naumann via Pixabay

With the major indexes at or near all-time highs, you might be wondering if it’s too late to add to an income portfolio. And I wouldn’t blame you. Buying high and selling low is a classic mistake that investors make far too often.

However, not all dividend stocks are trading at their peaks. With Barchart’s Opinion and Opinion Strength indicators, we can apply short-term technical analysis to help determine whether a stock still has room to climb.

Of course, bullish technical signals alone don’t tell the whole story. But when we combine them with Wall Street analysts’ consensus “Strong Buy” ratings, we may have a recipe for identifying dividend stocks that generate reliable income and offer additional upside potential.

Today, I’m highlighting quality dividend stocks that are trending upward and backed by strong analyst support.

I used Barchart’s Stock Screener tool to get the list using the following filters.

  • Overall Opinion %: Barchart’s daily overall opinion signal percentage. This is a short-term technical indicator that tells us if the stock is trading up or down.

  • Overall Opinion Strength: Strong to Top 1%. The stronger the signal, the stronger the opinion.

  • Current Analyst Rating: Strong Buy – to complement short-term technical opinion.

  • Number of Analysts: Very High (16 or more). A consensus among a higher number of analysts gives us greater conviction in the buy signal.

  • Annual Dividend Yield (%): At least 1.5%. We’re looking for companies that offer the highest dividend yields.

Running these filters, I got four results.

I sorted the companies by their dividend yield percentage. However, Western Digital Corp’s dividend value appears incorrect as its last quarterly dividend was $0.10, so we’ll kick off this list with:

NetEase Inc. is a Chinese company that provides internet and game services, including online games and e-commerce. The company has more than 140 games in its repertoire, including popular titles such as Rules of Survival and Marvel Mystic Mayhem, among others.

Beyond this, NetEase operates in other segments such as:

  • Yudao, an intelligent learning and advertising solutions provider;

  • NetEase Cloud Music, a popular music platform; and

  • Yanxuan, a private label consumer brand.

The company’s most recent financials reported sales of roughly $4.0 billion, up 7.4% from the same quarter last year, while net income increased 35.2% year-over-year to $1.4 billion. NetEase pays a forward annual dividend of $2.70, which translates to a yield of approximately 2.03%.

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