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25 Dividend Stocks That Analysts Love the Most

iStock

The longest bull market in history has stocks trading at record-high levels. That sounds like great news all around, but it actually creates a problem for income investors: Where can they find dividend stocks poised for outperformance that still sport decent yields?

The idea, after all, is to buy stocks when they’re low, not hitting new highs. Furthermore, the market’s relentless rise is depressing yields on dividend stocks.

Don’t forget: The yield on a dividend stock falls as its price goes up. A year ago, the dividend-paying stocks in the Standard & Poor’s 500-stock index had a trailing yield of 2%, according to Birinyi Associates. After gaining roughly 13% over the past 52 weeks, the yield on the S&P 500 is down to 1.8%.

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Quality buy-rated dividend stocks with better-than-average yields are hard to find, but we’re here to help.

First, we scoured the S&P 500 for dividend stocks with yields of at least 2%. From that pool, we focused on stocks with an average broker recommendation of “Buy” or better from Zacks Investment Research. Lastly, we dug into research and analysts’ estimates on the top-scoring names. That led us to these 25 great dividend stocks that have the highest analyst ratings.

SEE ALSO: 20 Dividend Stocks to Fund 20 Years of Retirement

Data is as of Aug. 21, 2018. Companies are listed by strength of analysts’ buy recommendations, from lowest to highest. Dividend yields are calculated by annualizing the most recent quarterly payout and dividing by the share price. Analysts’ ratings provided by Zacks Investment Research. Zacks surveys analyst ratings on stocks and scores them on a five-point scale, where 1.0 equals “Strong Buy” and 5.0 means “Strong Sell.” Any score of 2.0 or lower means that analysts, on average, rate the stock a buy. The closer the score gets to 1.0, the better.

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