Dividend stocks, which provide a steady flow of passive income, are popular with investors. However, not all dividend stocks have performed well during this year’s growth-fueled rally, leaving some at a deficit compared to the S&P 500 Index. But there are some high-yielding underperformers that have been making a comeback recently and offer attractive dividend yields and discounted valuations.
Here are two top dividend stocks that stand out for their quality income potential:
A Closer Look at Devon Energy as Oil Prices Rise
Devon Energy Corp (DVN) is a major player in the U.S. oil and gas industry, with a focus on quality, cost-efficiency, and long-lasting assets. Despite a challenging year, Devon Energy has been outperforming the S&P 500 in recent months. The stock has shown potential growth and stability, backed by rebounding energy prices and operational execution. Devon Energy has a strong dividend game, with a current yield of 6.77%, and is trading at a discount compared to its historical levels and industry averages.
VZ’s Low Valuation and Potential Upside Make It a Strong Dividend Play
Verizon Communications (VZ) is a leading telecom company that provides wireless, broadband, video, and media services globally. While Verizon has faced tough competition in the telecom arena, the stock has shown signs of bouncing back. It offers a generous dividend yield of 7.67% and has an attractive valuation compared to its historical levels and industry averages.
Both Devon Energy and Verizon Communications have received buy ratings from analysts and have upside potential in their share prices.
These stocks are solid picks for dividend investors as they offer attractive yields, discounted valuations, and potential for growth.
On the date of publication, Ebube Jones did not have any positions in the mentioned securities. This article is for informational purposes only and does not constitute investment advice.
The views and opinions expressed in this article are solely those of the author and do not necessarily reflect the views of Nasdaq, Inc.