Wall Street's Top Dividend Stocks for Income-Hungry Investors
When searching for dividend stocks, investors often have different criteria in mind. Some look for high-yielding companies, while others prioritize those with a history of dividend growth. This article focuses on 'total package' dividend stocks: well-covered companies that pay out above-average yields.
The author used specific criteria to select the top-rated dividend stocks, including a consensus analyst rating of 2.0 or less and an earnings payout ratio below 70%. The companies must also be part of the S&P 500 and have a yield greater than 1.5%, with most yielding more than 2%.
UnitedHealth Group (UNH) is one such company, with a dividend yield of 2.5% and a consensus analyst rating of 1.58 (Buy). The largest health insurer in the US, UNH has a diversified portfolio that includes Optum's medical-care coordination and pharmaceutical services. Despite facing challenges earlier this year, the company has bounced back and is outperforming the S&P 500.
Bank of America (BAC) is another top-rated dividend stock, with a yield of 2.0% and a consensus analyst rating of 1.54 (Buy). The bank serves over 70 million Americans through its consumer and commercial businesses, and has raised its cash distribution by 55% since 2020.