3 High-Yield Buy-Rated Stocks Worth a Look
Everybody loves dividends, as they provide a passive income stream, limit drawdowns in other positions, and provide more than one way to profit from an investment.
And when considering dividend-paying stocks, those with a history of consistent payouts are prime considerations, reflecting their commitment to shareholders.
For those seeking high-yield stocks with bright outlooks and a history of consistent payouts, Sunoco SUN, Xerox XRX, and Golden Ocean Group GOGL fit the criteria. Let’s take a closer look at each.
Sunoco
Sunoco LP is the largest independent fuel distributor in the U.S., distributing over eight billion gallons of fuel a year across more than 33 states. The stock sports a Zacks Rank #1 (Strong Buy), with earnings expectations moving higher across all timeframes.
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Shares currently yield a sizable 5.8% annually, blowing away the 3.4% average within the Zacks Oils and Energy sector. It’s worth noting that the company announced a 2% boost to its payout just last year.
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Xerox
Xerox, a current Zacks Rank #1 (Strong Buy), remains a leader in the contractual print and document services market. Analysts have raised their expectations across the board, with the revision trends for its current and next fiscal years notably bullish.
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Shares presently yield 5.8% annually paired with a sustainable payout ratio sitting at 55% of the company’s earnings. As shown below, the current yield crushes the average of the Zacks Industrial Products sector.
Image Source: Zacks Investment Research
Golden Ocean Group
Golden Ocean Group is a shipping company engaging in the transportation of dry bulk cargoes. The stock holds a Zacks Rank #1 (Strong Buy), with earnings expectations moving higher across several timeframes.
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The company’s dividend growth has been robust, sporting a sizable 44% five-year annualized dividend growth rate. Shares yield a steep 9.3% annually, nowhere near the respective 1.8% average within the Zacks Transportation sector.
Image Source: Zacks Investment Research
Golden Ocean’s growth is expected to return in a big way in its current fiscal year, with consensus estimates alluding to a 150% recovery in earnings on 31% higher sales. Peeking ahead to FY25, consensus expectations suggest an additional 20% pop in earnings on a 7% sales improvement.
Bottom Line
Dividends provide a great boost to any portfolio, providing a source of passive income and many other clear benefits. And when it comes to high-yield stocks with bright outlooks, all three above – Sunoco SUN, Xerox XRX, and Golden Ocean Group GOGL – fit the criteria nicely.
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Xerox Holdings Corporation (XRX) : Free Stock Analysis Report
Sunoco LP (SUN) : Free Stock Analysis Report
Golden Ocean Group Limited (GOGL) : Free Stock Analysis Report
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