Investing in high-dividend stocks may seem enticing, but caution is key. While high yields catch the eye, a dip in trading prices can inflate these numbers. And truly, who wouldn’t want dividend stocks that surge in value instead of slumping?
Today, I embarked on a market scan for high-yield stocks teetering close to their 52-week lows. But I didn’t stop there. I incorporated a dash of surprise screening criteria to pinpoint those with prime potential for an upswing.
Rigorous Screening for Top Stocks
To conduct my search, I utilized the Barchart Screener, employing two fundamental filters:
- Annual Dividend Yield (%): I set it at 5% or higher to steer clear of average rates. Why settle for conventional when you can aim higher?
- Percent From Low: Capped at 20% above the 52-week low, ensuring stocks near their yearly nadir. This approach guarantees potential for capital appreciation from a historical context.
While these metrics are customary and widely available, I craved more depth. I turned to Barchart’s exclusive analysis tool, the Barchart Opinion, which incorporates 13 technical indicators to formulate a cohesive view of a stock’s current trajectory and strength.
Refining the search, I layered on additional filters:
- Overall Buy/Hold/Sell Signal: Set to “Buy” for a preference towards buy-rated stocks.
- Overall Opinion Direction: Favoring “Strengthening to Top 1%” for a trend’s potential longevity.
- Overall Opinion Strength: Aligned with “Strong to Top 1%” to gauge a stock’s momentum.
- Overall Opinion Strength %: A threshold above 99% for absolute confidence in the picks.
This meticulous blend of filters yields high-dividend stocks poised to rebound off their 52-week lows.
Upon hitting “See Results,” I extracted three gems out of a multitude of stocks across prominent indices and OTC markets.
Sorting the list by descending dividend yields, let’s dive into the top three:
Kimbell Royalty Partners (KRP)
Kimbell Royalty Partners acquires and manages oil and mineral assets, capitalizing on royalty holdings. With interests spread across 28 states on about 17 million acres and ownership in over 129,000 wells, the company boasts stakes in major onshore US oil and gas basins.
Kimbell Royalty dispenses hefty quarterly dividends of 49 cents per share, totaling $1.96 annually, yielding an impressive 11.66%. Topped with a resounding 100% strong buy signal from Barchart Opinion, KRP stocks are up by 19.90% from their yearly low, presenting a bargain opportunity.
Westlake Chemical Partners LP (WLKP)
Specializing in petrochemicals, Westlake Chemical Partners engages in ethylene production in Kentucky and Louisiana, churning out approximately 3.7 billion pounds annually.
WLKP stocks yield 47.14 cents per quarter, around $1.89 annually, offering an 8.18% yield. Trading 10.14% above the annual low and trending “strengthening,” per Barchart Opinion, they hint at a favorable trajectory.
Enterprise Products Partners LP (EPD)
Regularly a star on my high-yield stock roster, Enterprise Products Partners runs as a midstream energy services provider, linking gas, oil, and refined products producers to consumers across the US and global markets.
EPD furnishes a quarterly dividend of 52.5 cents, totaling $2.10 annually, translating to a solid 7.10% yield. While trading 15.42% above its yearly low, the stock exhibits promise with positive Barchart Opinion indicators.
Closing Thoughts
Barchart Opinion proves a robust tool in pinpointing top-tier high-yield stocks for investment, especially when combined with the 52-week low filter. Give it a spin alongside your usual due diligence, and prepare to be pleasantly surprised by the outcomes.
