Back to top

Image: Bigstock

These Top Dividend Stocks Should Be on Your Rebound Radar: EPR, HRB, HSBC

U.S. stocks are rebounding swiftly on Monday as President Trump has temporarily called off airstrikes against Iran. Crude oil prices retreated sharply to around $90 a barrel after recently skyrocketing to over $100.

Several high-yielding dividend stocks may be of interest as markets reassess the risk of energy disruptions in the Middle East more favorably. Fears of a recession-like effect on the global economy were soothed with President Trump stating oil prices could "drop like a rock" if productive talks with leaders in Iran lead to a satisfactory deal to end the war.

Amid potential peace talks, these high-yielding dividend stocks are sporting a Zacks Rank #2 (Buy) and have favorable rebound prospects.

 

EPR Properties – EPR

Stock Price: $51

Describing itself as the leading experiential real estate investment trust (REIT), EPR Properties (EPR - Free Report) ) has a focus on owning properties where consumers spend time and money on experiences rather than goods.

EPR’s real estate portfolio includes theaters, water park attractions, lodging, and ski resorts, along with fitness centers and educational facilities across the United States. EPR stock had hit a 52-week high of $62 in February, and recent market volatility has presented a more appealing opportunity to buy a REIT with favorable diversification.  

Trading at a reasonable 9X forward earnings multiple, what has made EPR more appealing to income investors is that its annual dividend is currently at 7.02% and is paid monthly, as shown below, instead of quarterly or semi-annually.

Fidelity Investments
Image Source: Fidelity Investments

 

H&R Block – HRB

Stock Price: $31

Having a cyclical business that creates predictable seasonal swings, H&R Block’s (HRB - Free Report) ) stock is starting to look undervalued as the U.S. tax season approaches and has a 5.28% annual dividend at current levels. At $31 a share, H&R Block stock is still trading near a 52-week low and at just 6X forward earnings.

Zacks Investment Research
Image Source: Zacks Investment Research

Reassuringly, H&R Block’s EPS is projected to increase roughly 7% in FY26 and FY27. Outside of actively implementing artificial intelligence (AI) across its tax-filing products, H&R Block is also running several marketing promotions that could be impactful to its growth, including 50% off-price match offers and free tax return reviews to pull customers away from competitors like TaxAct and Intuit’s (INTU - Free Report) ) TurboTax.

Zacks Investment Research
Image Source: Zacks Investment Research

 

HSBC Holdings – HSBC

Stock Price: $81

Rounding out the list, the pullback in HSBC (HSBC - Free Report) ) shares looks attractive as one of the top-performing foreign bank stocks. HSBC stock has dipped 15% after hitting a 52-week high of $94 a share last month, but has still soared 100% in the last two years.

Magnifying HSBC’s strong performance is a very lofty 11.67% annual dividend yield, rewarding investors as it benefits from higher global interest rates. Even better, HSBC’s payout ratio is only at 26%, indicating there is plenty of room for more dividend hikes in the future with a 30.69% annualized dividend growth rate in the last five years.

Zacks Investment Research
Image Source: Zacks Investment Research

When including dividends, HSBC’s total return in the last five years is +270%, impressively outperforming the Zacks Banks-Foreign Market and JPMorgan (JPM - Free Report) ), the largest bank in the U.S.

Vast improvements in HSBC's Asia-focused businesses have boosted profits in particular, with the global banking and financial services firm implementing successful cost-cutting initiatives while making strategic moves regarding AI integration.

The prospects of a healthy correction look apparent as HSBC shares trade at 9X forward earnings, with EPS expected to increase 7% in FY26 and projected to rise another 6% next year to $8.67. Having operations in more than 50 countries, HSBC’s robust top line is also compelling, as annual sales projections are heading north of $70 billion.

Zacks Investment Research
Image Source: Zacks Investment Research

Zacks' 7 Best Strong Buy Stocks (New Research Report)

Valued at $99, click below to receive our just-released report predicting the 7 stocks that will soar highest in the coming month.

Click Here, It's Really Free

Published in