5 Dividend Stocks with Strong Upside Potential in 2023

A recent report highlights five dividend growth stocks from the S&P High Yield Dividend Aristocrats Index that show substantial upside to analyst target prices. These companies not only offer growing dividends but also potential capital gains, attracting investor interest.

Date: 27-12-2024

AI Rating: 7

The report discusses five companies, all part of the Dividend Aristocrats Index, indicating a strong investment profile due to their history of increasing dividends consistently over at least 20 years. This history attracts both individual and institutional investors, promoting further demand for their shares.

Each of the selected stocks shows a positive outlook based on analyst target prices, which suggests a potential capital gain in addition to their growing dividend payments. The report provides the following stocks:

Republic Services Inc (RSG): Current Price: $204.10, Analyst Target: $225.26, Upside: 10.37%, Total Return Potential (with dividend yield): 11.51%
Texas Instruments Inc. (TXN): Current Price: $191.73, Analyst Target: $211.33, Upside: 10.22%, Total Return Potential: 13.06%
C.H. Robinson Worldwide, Inc. (CHRW): Current Price: $104.35, Analyst Target: $114.81, Upside: 10.02%, Total Return Potential: 12.4%
NIKE Inc (NKE): Current Price: $76.94, Analyst Target: $84.10, Upside: 9.31%, Total Return Potential: 11.39%
United Bankshares Inc (UBSI): Current Price: $38.45, Analyst Target: $42.00, Upside: 9.23%, Total Return Potential: 13.08%

The report also evaluates the dividend growth of these companies over the trailing twelve months (TTM) compared to the previous period:

RSG: 8.17% growth
TXN: 4.78% growth
CHRW: 0.82% growth
NKE: 8.63% growth
UBSI: 2.07% growth

The positive dividend growth suggests a reliable income stream for investors, contributing to overall attractiveness as a long-term investment. Overall, the report indicates positive sentiment around these stocks, driven by substantial upside potential to analyst targets and consistent dividend growth.

Stocks: RSG TXN CHRW NKE UBSI