The 5 top-rated dividend stocks by analysts

Key Points

• Marketbeat's tools include analyst-tracking algorithms.
• The website can rank stocks by their average ratings and be sorted in numerous ways.
• This is a list of the top five highest-rated dividend-paying stocks at the end of 2023. 

Marketbeat.com provides many tools for investors, including analyst-tracking algorithms. A single upgrade is worthless, but a trend of upgrades can repeatedly drive a stock to new highs. Today, we’re looking at the five top-rated by analysts as tracked by Marketbeat. What does top-rated mean? In this case, these stocks have the highest average analyst rating over the last 12 months. A perfect score of 4.00 means 100% Buy ratings; these stocks are all rated at 3.0 or better, with yields between 3% and 13%. 

Copa Holdings: connecting Latin America

Copa Holdings NYSE: CPA is the holding company for various airlines operating under the Copa Airlines umbrella. It is the highest-rated dividend stock, with a score of 3.33 and a yield near 3.0%. Analysts rate this stock a firm Buy and view it as undervalued, enhancing the opportunity. The stock trades 17% below the lowest price target and could advance 45% if it moves up to the consensus. 

The dividend is safe for 2024. The company cut its payment along with the rest of the global industry during the COVID-19 pandemic but has since returned it. The 3% yield is less than 25% of the earnings consensus for this year and next, and growth is in the forecast. Growth is expected on the top and bottom lines in 2024, and analysts may underestimate demand. 

Kimbrell Royalty Partners: making money on mineral rights

Kimbrell Royalty Partners NYSE: KRP is the 2nd highest-rated dividend stock with the highest yield. The TTM payments are running at 13% of the stock price and may continue to run at that level in 2024. The company’s business is supported by incrementally growing demand for natural gas and a lean into acquisitions that will boost results dramatically in 2024. Analysts expect revenue to grow by 26% and drive a leveraged impact on the bottom line. Kimbrell trades well below its lowest price target, about 13% and 26% below the consensus. 

ConnectOne Bancorp, connecting the north and south

ConnectOne Bancorp NASDAQ: CNOB is a smaller financial institution serving the New York and southern Florida markets. It is the 3rd highest-rated dividend stock and pays about 3.0%, with shares trading near 10X earnings. The five analysts with ratings tracked by Marketbeat have it pegged at Buy and see it trading near its floor, a level only recently regained. The market for this stock recovered from the 2023 banking scare and looks ready to move higher; the consensus target is about 10% above the recent action. 

ConnectOne’s dividend is secure. The company pays about 20% of its earnings as dividends and is expected to sustain its earnings power into 2025. The company is also growing the payout at a double-digit pace and can be expected to continue that trend in 2024. 

Brookfield Infrastructure Partners: real assets at work around the world 

Brookfield Infrastructure Partners NYSE: BIP is a limited partnership investing globally in real assets and infrastructure. The company operates in electric generation, natural gas, rail, fiber optic cable and semiconductor manufacturing. It is the 4th highest-rated dividend stock and yields about 5%. This yield is reliable. It is running at less than 50% of the FFO or funds from operations and has been increased annually for over a decade. Analysts view it as undervalued, trading 10% below the lowest price target and 26% below the consensus.

Atlas Energy Solutions: sand pays big money 

Atlas Energy Solutions NYSE: AESI is an interesting play on the fracking regions of Texas. The company provides proppant or sand to the frackers they can use to keep the fractures open. Analyst rate this stock a Buy and see it rising 40% at the low end of their expected range. The dividend is worth about 3.0%, and the distribution can be expected to grow. The payout ratio at the end of 2023 was less than 20%, with significant earnings growth expected in 2024.