What are dividend investors looking for? The holy grail of dividend investing means stocks in strong companies that pay out a high dividend yield. The yield can provide a steady source of income every quarter which, investors hope, will increase over time. You can even reinvest the money back into the company to ramp up your shareholding.
Dividend stocks from financially healthy companies can also be a smart way to hedge your risk against more volatile stocks.
I used the powerful TipRanks stock screener to find the best dividend stocks with high yields (above 2.5%) that have a “Strong Buy” analyst consensus rating. The rating is based on the proportion of buy ratings the stock has received over the last three months. I looked across all sectors and at mega, large- and medium-cap companies.
Now let’s delve into the three top dividend stocks that provide the most compelling investment opportunities.