Dividend Stocks

7 Dividend Stocks to Buy That Analysts Love

  • These dividend stocks distribute high yields and have strong buy ratings, making them great opportunities for passive income investors.
  • Fortress Transportation and Infrastructure Investors (FTAI): Forward dividend yield of 7.06% and an upside of 81.54%.
  • Global Medical REIT (GMRE): Forward dividend yield of 6.43% and an upside of 30.69%.
  • Diamondback Energy (FANG): Forward dividend yield of 6.06% and an upside of 39.83%.
  • Rent-A-Center (RCII): Forward dividend yield of 4.82% and an upside of 40.82%.
  • B2Gold (BTG): Forward dividend yield of 3.95% and an upside of 53.39%.
  • Phillips 66 (PSX): Forward dividend yield of 4.00% and an upside of 9.74%.
  • LCI Industries (LCII): Forward dividend yield of 3.16% and an upside of 24.02%.
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Lingering fears that the plan of the Federal Reserve to cut inflation could tip the economy into recession, prompting bears to send the SPDR S&P 500 Trust ETF (NYSEARCA:SPY) to fresh lows. One way to face tumultuous market periods is to invest in dividend stocks. These stocks provide a great hedge against inflation, generating a regular income and a tax advantage.

Most of the high-paying dividend stocks on today’s front page are either energy or REIT stocks. These sectors have historically performed better in inflationary environments and analysts are bullish on the future stock performance of these companies.

In this context, here is a selection of high yield dividends stocks that Wall Street analysts appreciate:

FTAI Fortress Transportation and Infrastructure Investors $18.99
GMRE Global Medical REIT $13.37
FANG Diamondback Energy $131.04
RCII Rent-A-Center $28.14
BTG B2Gold $4.01
PSX Phillips 66 $97.15
LCII LCI Industries $117.75

Dividend Stocks: Fortress Transportation and Infrastructure Investors (FTAI)

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Fortress Transportation and Infrastructure Investors (NASDAQ:FTAI) is engaged in owning and acquiring infrastructure and related equipment, essential to move goods and people globally. Since the beginning of the year, FTAI stock tumbled 36.56% to $17.56 per share, after the news regarding the spin-off of Fortress’ Infrastructure business was received with disappointment by investors.

Revenue guidance is expected to advance robustly this year, up 58.3% to $722 million, whereas FTAI’s annual net loss should deepen, registering a $156 million loss compared to $129 million in 2021. Nevertheless, in 2023, analysts expect FTAI to turn a profit of $160 million, representing a healthy net profit margin of 17.4% per year.

Moreover, the infrastructure investment firm offers an attractive estimated yield of 7.06% in 2022, and Wall Street analysts are bullish on the equity story. FTAI has a strong buy rating, with an average target price of $34.33, representing an upside of 81.64%, one of the largest on our list of dividends stocks.

Global Medical REIT (GMRE)

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Global Medical REIT (NYSE:GMRE) is engaged in the acquisition of purpose-built healthcare facilities and the leasing of those facilities to healthcare systems and physician groups with a leading market share. GMRE stock plunged 28.94% year-to-date to $12.72 per share, underperforming equity markets.

The fundamentals of the real estate investment trust (REIT) weakened last quarter due to higher expenses and missed earnings per share guidance in the past two quarters. Yet, GMRE has a strong portfolio of assets, with an occupancy rate of 97% as of March 2022 and a weighted average lease term of 6.9 years. Going forward, GMRE’s bottom-line growth is projected to grow at a double-digit rate of 18.6% to $140 million in 2022 and by 62.1% to $227 million in 2023, sustaining the REIT’s stock.

With that being said, Global Medical has a high yield compared to other dividend stocks, offering an expected return of 6.43% in 2022. Moreover, the consensus of Wall Street analysts loves this REIT. All analysts covering GMRE shares have a strong buy view, providing a target price of $17.50 per share in the next twelve months, or an upside of 30.69% from today’s close.

Dividend Stocks: Diamondback Energy (FANG)

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Diamondback Energy (NASDAQ:FANG) is an independent U.S-based oil and gas exploration and production company with reserves in the Permian Basin. FANG stock gained 13.59% to $127.04 over the year, as increasing oil and gas supply uncertainties triggered by the situation in Ukraine, prompted oil prices to fresh highs, thus, sustaining Diamondback’s stock price.

This favorable oil and gas market should continue to enhance FANG’s fundamentals. After surging 141.6% to $6.79 billion in 2021, revenues are estimated to advance robustly in 2022, up 38.1% to $9.38 billion. FANG’s bottom line should advance even faster, up 95.8% to $4.27 billion this year, propelling net margins at a high level of 45.5%.

With these attractive financials, FANG stocks is another great dividend stock candidate that is expected to distribute a superior dividend yield of 6.06% in 2022. Meanwhile, analysts’ guidance on the stock is fruitful, offering an upside potential of 39.83%, representing an average target price of $183.65 per share.

Rent-A-Center (RCII)

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Rent-A-Center (NASDAQ:RCII) is a furniture and electronics rent-to-own operator in North America, providing products, such as consumer electronics, appliances, computers, smartphones, and furniture, under rental purchase agreements. RCII stock has been battered by the market year-to-date, dipping 42% to $28.05 per share.

Despite this poor stock performance, Rent-A-Center’s profitability is projected to enhance this year and free cash flow is expected to advance robustly in 2022, up 25.8% year-on-year to $415 million. The top line should however flatten this year, establishing at $4.49 billion, down 1.9% year-on-year, nevertheless, net profit is estimated to expand significantly, up 74.1% to $235 million, representing a moderate annual net margin of 5.22%.

Moreover, the rental specialist has a 2022e4.82% dividend yield, an attractive level for passive income investors. Besides, RCII stock has a strong buy rating, according to the consensus of analysts, with a high upside of 40.82% and a target price of $39.50 per share.

Dividend Stocks: B2Gold (BTG)

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B2Gold (NYSEAMERICAN:BTG) is a Canadian mining company that owns and operates gold mines in Nicaragua, Namibia, and the Philippines. Since the beginning of the year, BTG stock advanced marginally, gaining 2.08% to $3.92 per share, following a strong performance, which beat analysts’ expectations in the past three quarters.

Besides, the gold stock is loved by analysts and is rated as a strong buy stock, due to its high profitability and healthy financial structure. Indeed and while net income is expected to advance 10.2% to $463 million this year, BTG stock offers an anticipated profit margin of 25.1% in 2022 versus 23.8% last year. More importantly, the gold miner is net cash positive, with a total position of $598 million at the end of 2021, which is favorable in a lifting interest rate environment.

Moreover, the gold specialist offers a moderate dividend yield of 3.95% compared to other dividend stocks, but according to the consensus of analysts, it has a strong upside of 53.39% in the next twelve months corresponding to a target price of $6.22 per share.

Phillips 66 (PSX)

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Phillips 66 (NYSE:PSX) is a diversified energy company’s portfolio that includes Midstream, Chemicals, Refining, and Marketing. PSX stock gained 23.95% to $93.88 per share after the oil company surpassed revenues and earnings per share estimates in the five preceding quarters.

The fundamental picture remains in favorable trend. PSX’s revenues are estimated to expand 20.5% to $138.4 billion in 2022, following the hefty growth registered last year, up 75.4% to $114.8 billion. On the other hand, Phillips’ net profits are projected to jump 239.2 % this year to $4.46 billion, representing however a low annual net margin of only 3.23%.

Despite that, dividend distributions are sustainable and the dividend stock is expected to offer an attractive return of 4.00% in 2022. Moreover, Wall Street analysts have a constructive view of the energy specialist. After the strong year-to-date performance of the stock, it still has a strong buy rating and an upside potential of 9.74%, representing a target price of $107 per share.

LCI Industries (LCII)

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LCI Industries (NYSE:LCII) engages in supplying a range of highly engineered components for the leading original equipment manufacturer in the recreational vehicle (RV) markets and adjacent industries. LCII stock decreased 24% year-to-date to $117.75 per share, mainly due to tough equity market conditions.

The stock reported record revenue in Q1 2022, posting net sales of $1.6 billion, up 64% year-on-year. Besides, the forward guidance on LCI Industries’ stock is on a productive path. After a strong 2021 year, where sales jumped 60% to $4.47 billion, revenues are projected to advance 24.4% to $5.56 billion, supporting the shares of the RV specialist. The bottom line is estimated to expand faster, up 56.2% to $450 million, corresponding to a moderate profit margin of 8.09% on the year.

With that being said, LCII stock is expected to deliver a less compelling yield of 3.36% per year, slightly lower than the dividend stocks in our selection. Nevertheless, all analysts covering LCI stock have a buy recommendation, delivering an average target price of $146 per share, an upside of 24.02% from today’s close.

On the date of publication, Cristian Docan did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Cristian Docan, a contributor for InvestorPlace.com, has been writing stock market-related articles for Seeking Alpha, Stocknews, and Wealthpop since 2017. He takes a fundamental and technical approach in evaluating stocks for readers, focusing on momentum investing and macro-driven strategies.

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