10 Best High-Yield Dividend Growth Stocks to Buy Right Now

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6. Black Hills Corporation (NYSE:BKH)

Dividend Yield as of April 27: 3.79%

On April 15, BMO Capital analyst Edward DeArias raised the firm’s price recommendation on Black Hills Corporation (NYSE:BKH) to $91 from $84. It reiterated an Outperform rating on the shares. The move followed a jump in the stock after reports that Microsoft (MSFT) is buying land to build a data center that would be served by the company. The analyst said that, over time, this opportunity, along with continued hyperscaler interest in the state, could extend Black Hills’ growth trajectory.

The note also pointed out that the stock’s current discount to peers reflects concerns around management’s execution on its plan, despite a strong balance sheet and recovery mechanisms already in place. Potential new large load announcements and updates to the capital plan could also play a role going forward.

Black Hills Corporation (NYSE:BKH) operates as a utility company focused on serving customers across multiple regions. It provides natural gas and electric services to about 1.35 million customers in Arkansas, Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota, and Wyoming. Its business is organized into Electric Utilities and Gas Utilities segments.

While we acknowledge the potential of BKH as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than BKH and that has 100x upside potential, check out our report about the cheapest AI stock.

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