Looking For Price Gains With Your Dividend? Analysts Are Bullish On These 3 Dividend Payers - Predicting 50%+ Upside

When the stock market gets rocky, dividends can provide a steady stream of income. And when those dividends come from companies with a bright future, that’s a win-win for investors. 

After the stock prices have taken a beating this year, these three companies are sitting at, or near, all-time high dividend yields along with some major upside on price. 

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Ford Motor Co. F 

Ford’s been in the spotlight recently, with Morgan Stanley’s Adam Jonas maintaining an Overweight rating on the automotive giant. Even better? He’s set a price target of $16, translating to a potential upside of approximately 53% from its current stance.

But here’s the kicker: on October 30, despite a rather lackluster third-quarter and a hovering cloud of uncertainty from a recent workers' union strike, S&P Global Ratings upgraded Ford's credit rating to Investment Grade.

Ford investors should be thrilled with its substantial 6.1% dividend yield – the highest it's been since the first quarter of 2020. This dividend, at $0.15 per share, will hit shareholder pockets on December 1, 2023.

Ford’s year hasn’t been all rainbows — the company’s shares have declined 11.5% year to date. They’ve also chosen to withhold the full year 2023 guidance, due to the pending ratification of its tentative agreement with the United Auto Workers (UAW).

Its earnings fell short of estimates for the third quarter. An EPS of $0.39 per share missed the mark of the estimated $0.45 and revenue of $41.18 billion fell just short of the estimated $41.22 billion.

Tegna Inc. TGNA

Broadcasting giant Tegna isn’t without its accolades. Benchmark’s Daniel Kurnos, echoing positivity, reiterated a Buy rating and placed a price target of $22 — a potential increase of 55% from where it stands.

Earlier in the year, Tegna turned some heads by increasing its quarterly dividend to $0.1138 per share, making the yield now stand at 3.17%. The company's Q3 earnings report is slated for November 7, 2023.

Tegna's share price has taken a hit this year, dropping over 32% year to date. This puts the current dividend yield well above the 1% – 2% range that investors bought in at previously.

Southwest Airlines Co. LUV

The skies are clearing up for Southwest Airlines. On the last day of October, Morgan Stanley's Ravi Shanker maintained an Overweight rating and stamped a price target of $47 — a whopping potential upside of 110%.

Rebounding from the pandemic’s clutches, Southwest reinstated its dividend in December after a near three-year hiatus. Its recent quarterly dividend? A comfortable $0.18 per share, boasting a yield of 3.2%. This yield makes the stock more attractive to income investors than 0.5% – 1.25% it paid out previously. 

Q3 earnings were a mixed bag. Operating revenues touched $6.5 billion, a 4.9% year-over-year growth. However, EPS declined to $0.38 from last year's Q3 result of $0.50.

The flight path this year has been turbulent, with the airline’s shares dropping about 32%.

The Bigger Picture 

For perspective, the broader S&P 500 offers a dividend yield of 1.62%. Moreover, it’s been a decent year for the index, with an uptick of approximately 8.8% year to date.

Remember, while the promise of high dividends and potential stock appreciation is tempting, always ensure your investments align with your financial goals and risk tolerance. And as ever, past performance is not a reliable indicator of future results.

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