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Timing is everything when it comes to investing, and this is especially true for dividend stocks. Buying a dividend stock at the right price can significantly enhance your yield, setting you up for higher income and potential price appreciation. When analysts predict a turnaround for beaten-down dividend stocks, it may be an opportune time to consider adding these companies to your portfolio.
If analysts are correct about their price targets for these companies, buying now could result in a higher-than-average yield along with the potential for price growth. Let’s take a closer look at three dividend stocks that analysts believe are poised for a comeback.
APA Corporation (NASDAQ:APA)
APA Corporation, an independent energy company, has seen its stock price decline by 15.66% year-to-date. However, the company currently offers a forward dividend yield of 3.30%, and analysts see a potential upside of 39.23% based on their average price target of $42.33 from the three most recent ratings.
With a payout ratio of 24.33% and two years of consecutive dividend growth, APA Corporation appears well-positioned to continue rewarding shareholders. If the company’s stock price recovers as analysts expect, investors who buy now could benefit from both a higher yield and capital appreciation.
American Tower Corp (NYSE:AMT)
American Tower Corp, one of the largest global REITs, has experienced a 16.25% decline in its stock price year-to-date. The company currently offers a trailing twelve-month dividend yield of 3.59%, significantly higher than its four-year average yield of 2.41%.
The last three analyst ratings have an average price target of $230.33 for American Tower Corp, implying a potential upside of 27.47%. The company has an impressive track record of 11 consecutive years of dividend growth, with a five-year CAGR of 14.55%. If the stock price recovers as analysts predict, investors could benefit from a higher yield and potential price appreciation.
Safehold Inc. (NYSE:SAFE)
Safehold Inc., a REIT that focuses on ground leases, has seen its stock price decline by 16.88% year-to-date. The company currently offers a forward dividend yield of 3.58%, in line with its four-year average yield of 3.5%.
Analysts have an average price target of $25.67 for Safehold Inc. from the three most recent ratings, suggesting a potential upside of 31.96%. The dividend has increased four times over the past five years with an impressive CAGR of 14.48%.
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Time to Buy These Beaten Down Dividend Stocks?
While analyst ratings can be a great starting point for your research, they shouldn’t be the sole reason for making an investment decision. It’s essential to keep in mind that even the best analysts are only correct about their price targets approximately half of the time.
Before investing in any of these beaten-down dividend stocks, be sure to conduct your own thorough research and consider how these investments align with your overall financial goals and risk tolerance. Additionally, diversifying your portfolio with alternative income-generating options like the Cityfunds Yield fund can help balance risk and provide a more stable income stream.
As always, it’s crucial to approach investing with a long-term perspective and to be prepared for potential volatility along the way. By carefully considering your options and maintaining a well-diversified portfolio, you can work towards achieving your financial objectives while navigating the ever-changing market landscape.
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This article Analysts Expect Things To Turn Around For These Beaten Down Dividend Stocks – Buy Now To Capture Higher Yield? originally appeared on Benzinga.com
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