Fintel\u2019s Top 10 U.S. Dividend Stocks For November

The Fintel research platform has highlighted these ten U.S. stocks that look attractive in the current market based on their respective dividend scores.

The platform’s dividend score combines both a company’s dividend yield and growth to generate a score out of 100 based on its ranking against peer companies on the screen.

The most common companies topping the list this quarter have been energy, mining and listed real-estate companies.

American coal mining company Arch Resources (US:ARCH) has moved into the top spot on the dividend leaderboard with a dividend score of  98.98. The company is continuing to make significant profits from inflated revenue as a result of skyrocketing coal prices.

The company has an annualized trailing dividend yield of 15.51% when including special dividends that are being paid to holders. Last week the company reported third quarter earnings and announced a Q3 dividend payment of $10.75 per share as per the firm’s new policy of returning 50% of free cash flow back to shareholders.

Analysts remain bullish on the future outlook of the company with an average ‘buy’ rating and $255 consensus target price for ARCH. Since we last reported on the stock, the average target has risen ~$60.
American consumer finance company OneMain Holdings (US:OMF) has recently fallen one rank and now has the second highest dividend score on the leaderboard of 96.27.

OMF continues to grow its quarterly distribution to investors over time but has halted the payment of surplus capital in the form of special dividends.

Even without the special dividends, the quarterly dividend of 95 cents per share equates to an ordinary dividend yield of 10.28%.

At the end of October, OMF reported third quarter earnings to the market with adjusted EPS beating forecasts while interest income was broadly as expected.

Analysts remain upbeat on the company with a consensus ‘buy’ rating and $64 target on the stock, well above  the $36.96 last traded price.

Devon Energy (US:DVN) has the third highest dividend score of 96.18 and has grown its dividends by 13% per anum over the last two years. The energy producer has a dividend yield of 8.67%.

For the third quarter, the company made $1.5 billion in free cash flows and expects to generate record free cash flows for the year. The dividend payout ratio as a result of the growing profits increased 61% over the year.

The company continues to benefit from elevated oil and gas prices as volatile supply markets impact spot and future prices.

The market remains bullish on the company despite the strong share price rally with an average ‘overweight’ call and a $110 price target.

Corterra Energy (US:CTRA) currently holds fourth place with a 95.97 score. CTRA has a dividend yield of 8.98% and has grown dividends on average by 5.5% over the last two years.

Like other companies in the sector, CTRA is benefitting from increased profits and free cash flows as commodity sale prices significantly outpace the costs of production.

CTRA on average has an ‘overweight’ consensus recommendation and a $48 average target price.

Microcap stock Crown Crafts (US:CRWS) holds the fifth spot with a score of 94.69. The company currently has an 11.62% dividend yield based on annualized dividends of 67 cents per share when including special dividends.

The company usually declares a special dividend during November to be paid by the end of the year.

The dividend yield has been boosted in part by the falling share price which has retreated 20% this year with the market. The stock also trades on an undemanding PE ratio of 6.7x.

Other stocks in the top 10 include Texan oil & gas heavyweight Diamondback Energy (US:FANG) with a score of 94.59, paying a 7.56% dividend yield when annualizing recent quarterly and variable dividends being paid. The stock also trades on a cheap 7.5x PE ratio.

Real estate investment trust Uniti Group (US:UNIT) also makes the list with a score of 94.50 and a dividend yield of 8.86%. The REIT’s yield has grown significantly as the share price has fallen 51% over 2022.

CTO Reality Growth REIT  (US:CTO) is included in the top 10 with a score of 94.20 and a dividend yield of 7.44%. The REIT has traded sideways over the course of 2022 as the company has outperformed consensus expectations in a volatile market.

Energy company Berry Corp (US:BRY) made the list with its 92.99 score. The stock has a current annualized dividend yield of 9.88% when annualizing recent significant dividends that have been declared by the company in 2022.

The final company on the list is wood products manufacturer Boise Cascade (US:BCC) with its score of 90.18. The stock has an annualized dividend yield of 6.21% when including special dividends declared by the company. During October, BCC increased its quarterly dividend from 12 cents to 15 cents and announced a special dividend of $1 per share.

This article originally appeared on Fintel

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