We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
2 High-Dividend Stocks with a Strong Buy Rating: AB, USAC
The Zacks Rank #1 (Strong Buy) list highlights stocks that are most likely to have more upside in correlation with rising earnings estimate revisions (EPS), which is considered the most precise indicator of upward momentum in stocks.
Many platforms don’t offer an advanced stock screener tool like Zacks to sift out an intriguing short-term EPS revision trend, so chances are they won't be able to pinpoint a stock that also offers a 5% annual dividend yield or higher as well while trading at a realistic P/E valuation.
However, if you are ambitiously seeking these prospects, here are two highly ranked Zacks stocks that do.
Top Asset Manager with an 8% Dividend Yield & Record AUM
1. AllianceBernstein (AB - Free Report) has joined a list of top investment management firms that are sitting at peaks in assets under management (AUM). Reporting record AUM of $860 billion during Q3, AllianceBernstein stock stands out among the elite asset managers with a whopping 8.67% annual dividend yield, with its Zacks Financial-Investment Management Industry average at 2.27%.
Image Source: Zacks Investment Research
2. AllianceBernstein is known to carry a very low debt-to-capital ratio, suggesting its dividend is safe, and has also stood out by efficiently generating profits from shareholder capital with a trailing twelve-month ROE of 21% compared to the industry average of 9%.
Image Source: Zacks Investment Research
3. EPS revisions for FY25 and FY26 are modestly higher in the last 30 days, making it an ideal time to potentially add positions in AB for an income-oriented play. Making this feasible and desirable regarding adding positions is that compared to some of the other higher-tier investment management stocks, AB trades rather cheaply at around $40 a share and 11X forward earnings.
Plus, the annual EPS growth projections for AB are enticing, with a nearly 15% increase expected next year.
Image Source: Zacks Investment Research
An MLP with Soaring Earnings
If you think AllianceBernstein’s EPS growth targets are attractive, how about a Master Limited Partnership (MLP) that‘s expected to post a 30% increase in earnings per share this year and another 38% uptick in FY26.
Because of their tax structures, MLPs are required by law to distribute most of their cash to shareholders. This typically makes them very popular income-focused investments, especially as it relates to the energy sector, with USA Compression Partners (USAC - Free Report) setting itself apart.
As one of the largest independent natural gas compression services providers in the U.S., this MLP offers an 8.75% annual dividend yield. Furthermore, at under $25 a share, USAC trades at a reasonable 27X forward earnings multiple considering its EPS growth.
Image Source: Zacks Investment Research
More reassuring is that over the last 60 days, FY25 and FY26 EPS revisions for USA Compression Partners have now risen over 5% and 7% respectively.
Image Source: Zacks Investment Research
Bottom Line
For investors seeking income in the portfolio, these highly ranked Zacks stocks are hard to overlook at the moment. Enticing dividends, EPS growth, and fair P/E valuations make them appealing long-term prospects, and the positive earnings estimate revision trend points to more short-term upside.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
2 High-Dividend Stocks with a Strong Buy Rating: AB, USAC
The Zacks Rank #1 (Strong Buy) list highlights stocks that are most likely to have more upside in correlation with rising earnings estimate revisions (EPS), which is considered the most precise indicator of upward momentum in stocks.
Many platforms don’t offer an advanced stock screener tool like Zacks to sift out an intriguing short-term EPS revision trend, so chances are they won't be able to pinpoint a stock that also offers a 5% annual dividend yield or higher as well while trading at a realistic P/E valuation.
However, if you are ambitiously seeking these prospects, here are two highly ranked Zacks stocks that do.
Top Asset Manager with an 8% Dividend Yield & Record AUM
1. AllianceBernstein (AB - Free Report) has joined a list of top investment management firms that are sitting at peaks in assets under management (AUM). Reporting record AUM of $860 billion during Q3, AllianceBernstein stock stands out among the elite asset managers with a whopping 8.67% annual dividend yield, with its Zacks Financial-Investment Management Industry average at 2.27%.
Image Source: Zacks Investment Research
2. AllianceBernstein is known to carry a very low debt-to-capital ratio, suggesting its dividend is safe, and has also stood out by efficiently generating profits from shareholder capital with a trailing twelve-month ROE of 21% compared to the industry average of 9%.
Image Source: Zacks Investment Research
3. EPS revisions for FY25 and FY26 are modestly higher in the last 30 days, making it an ideal time to potentially add positions in AB for an income-oriented play. Making this feasible and desirable regarding adding positions is that compared to some of the other higher-tier investment management stocks, AB trades rather cheaply at around $40 a share and 11X forward earnings.
Plus, the annual EPS growth projections for AB are enticing, with a nearly 15% increase expected next year.
Image Source: Zacks Investment Research
An MLP with Soaring Earnings
If you think AllianceBernstein’s EPS growth targets are attractive, how about a Master Limited Partnership (MLP) that‘s expected to post a 30% increase in earnings per share this year and another 38% uptick in FY26.
Because of their tax structures, MLPs are required by law to distribute most of their cash to shareholders. This typically makes them very popular income-focused investments, especially as it relates to the energy sector, with USA Compression Partners (USAC - Free Report) setting itself apart.
As one of the largest independent natural gas compression services providers in the U.S., this MLP offers an 8.75% annual dividend yield. Furthermore, at under $25 a share, USAC trades at a reasonable 27X forward earnings multiple considering its EPS growth.
Image Source: Zacks Investment Research
More reassuring is that over the last 60 days, FY25 and FY26 EPS revisions for USA Compression Partners have now risen over 5% and 7% respectively.
Image Source: Zacks Investment Research
Bottom Line
For investors seeking income in the portfolio, these highly ranked Zacks stocks are hard to overlook at the moment. Enticing dividends, EPS growth, and fair P/E valuations make them appealing long-term prospects, and the positive earnings estimate revision trend points to more short-term upside.