High-yielding stocks can be attractive at face value, but remember, low trading prices can sway yield numbers—and at the end of the day, you'd still want your dividend stocks to increase in value, not decrease. Today, I scanned the market for high-yielding stocks trading near 52-week lows and added a couple of surprise screening criteria to signal I'm getting the ones with the highest chances of going up.
If that's something you're interested in, read on.
How I Screened For The Following Stocks
Using Barchart Screener, I added two basic filters:
- Annual Dividend Yield (%): Set to 5% or higher. On average, a dividend yield of 2% to 5% is considered good. But what fun would that be if we aim for average rates? That’s why I set the screener to look for stocks that have 5% or more yields.
- Percent From Low: Set to a maximum of 20% above the 1-year or 52-week low. For this scan, I wanted stocks trading near their annual low point. That assures me that the resulting companies will have ample room for capital appreciation, at least from a historical trading perspective.
These two metrics are rather common and can be found on pretty much any financial market data site, available for everyone to see. But that’s not enough for me. What would be the point of presenting stock analyses that anyone and their grandma can get from a 30-second Google search?
Thankfully, Barchart has a feature that allows me to screen my results with even further granularity using analysis tools available only on the site. Barchart Opinion is an exclusive analysis tool that runs stocks through 13 technical analysis indicators to form a composite view of the stock’s current direction and directional momentum or strength.
So, I added the following filters:
- Overall Buy/Hold/Sell Signal: Set it to “Buy” because I want buy-rated stocks.
- Overall Opinion Direction: Set to Strengthening to Top 1%. This filter indicates the potential continuation of the stock’s current direction. So, the stronger it is, the longer the trend will likely go.
- Overall Opinion Strength: Set to Strong to Top 1%. The opinion strength interprets technical analysis information to predict how much momentum the stock has behind its current direction, a potential predictor of how high it could go.
- Overall Opinion Strength %: Set to greater than 99%. This way, I only get 100% strength value stocks, giving me more confidence about my picks.
With this combination of filters, I can get a list of high-dividend stocks that essentially use their 52-week lows as springboards for a strong upward jump.
After clicking “See Results,” I got five hits out of thousands of stocks from major indices and OTC markets.
Then, I arranged the list from highest to lowest dividend yields and took the top three.
So, let’s start with:
Kimbell Royalty Partners (KRP)
Kimbell Royalty Partners purchases and owns various oil and mineral assets and earns through royalty assets. The company owns mineral and royalty interests across approximately 17 million gross acres in 28 states, including ownership in more than 129,000 gross wells, and owns interests in all major onshore oil and gas basins in the United States.
Kimbell Royalty pays 49 cents per share in quarterly dividends, totaling $1.96 annually. This translates to an impressive 11.66%, earning it the top spot on this list. It also has a 100% strong buy signal overall from Barchart Opinion. KRP stock trades at 19.90% above its 52-week low, making it a potentially cheap buy.
Westlake Chemical Partners LP (WLKP)
Westlake Chemical Partners is a petrochemical company that produces and markets ethylene and develops and operates ethylene production facilities in Kentucky and Louisiana. These facilities produce approximately 3.7 billion pounds of ethylene annually.
WLKP stock pays 47.14 cents in quarterly dividends, which equates to roughly $1.89 annually and an 8.18% yield. Another attractive factor is that it’s trading 10.14% above its 52-week low, and its direction is “strengthening,” according to Barchart Opinion.
Enterprise Products Partners LP (EPD)
Enterprise Products Partners is a frequent member of my highest-yielding stocks list. The company operates as a midstream energy services provider, which means it connects natural gas, crude oil, and refined products producers to consumers in the northern United States and international markets.
EPD stock pays 52.5 cents quarterly or $2.10 annually, translating to a respectable 7.10% yield and earning it the third spot in this list. While the stock is making some headway in improving performance, it is still trading at 15.42% above its 52-week low. Given its positive strength and direction based on Barchart Opinion, it still has a lot of room for growth.
Final Thoughts
Barchart Opinion can be a powerful tool when looking for top-shelf, high-yield stocks to buy, especially when combined with the 52-week low filter. Try it for yourself sometimes—along with your typical due diligence, of course—and you might be pleasantly surprised with the results.
On the date of publication, Rick Orford did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
