In this article, we will take a look at the 13 Extreme Dividend Stocks With Huge Upside Potential.
Dividend stocks have outperformed the market so far this year. The S&P 500 Dividend Aristocrat Index has risen nearly 3% since the start of 2026. Over the same period, the broader S&P 500 has declined 2.16%.
Mike Casey, a certified financial planner and president of American Executive Advisors, shared his view on the trend:
“Dividend-focused ETFs have quietly reasserted their relevance in periods like this year when volatility reminds investors that total return isn’t only about price appreciation. When markets become choppy, the consistency of cash flow tends to change investor behavior in a very tangible way.”
Dividend investors can either spend the income they receive or keep it. There are also ways to use those payouts to strengthen a portfolio and prepare for more market swings. One option is to reinvest the dividends. Depending on an investor’s time horizon, asset allocation plan, and confidence in the dividend-paying company, the income can be used to buy additional shares. Over time, that approach can help compound returns.
Dividend reinvestment is a strategy that Thomas Van Spankeren, CFP and chief investment officer at RISE Investments, often uses with younger clients and investors who have longer time horizons. “We like to reinvest the dividends if there is no near-term cash flow need,” he said. Investors can simplify the process by enrolling in a dividend reinvestment plan through their brokerage. These programs automatically use dividend payments to buy more shares. These plans, often called DRIP programs, work in a way that resembles dollar-cost averaging. Investors continue buying shares at different times, regardless of how the stock price moves. Another approach is to build up liquidity.
In a volatile market, holding some cash can help investors avoid selling assets at unfavorable times. It also leaves them prepared to buy shares if prices fall. Given this, we will take a look at some of the best dividend stocks to invest in.
Photo by Vitaly Taranov on Unsplash
Our Methodology
For this list, we screened for dividend stocks with yields higher than 4% as of March 13. Then, we narrowed down the choices by finding stocks with the highest upside potential according to analysts. Among those stocks, we chose companies that have relatively stable dividend histories; however, a lot of the companies on the list don’t have a consistent record of paying dividends due to their exceptionally high yields. We limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
13. Blackstone Inc. (NYSE:BX)
Dividend Yield as of March 13: 4.49%
Upside Potential as of March 13: 48.5%
On March 3, Reuters reported that Blackstone Inc. (NYSE:BX)’s flagship private credit fund saw a surge in withdrawals during the first quarter. The increase came as investors grew uneasy about private credit and as smaller rival Blue Owl Capital faced its own challenges.
The New York-based investment firm allowed clients to withdraw $3.7 billion from its $82 billion fund, BCRED, according to a filing released. The fund also received $2 billion in new commitments, leaving net withdrawals at $1.7 billion. Blackstone’s shares dropped 8% the following day to their lowest level in two years after the company said redemption requests reached 7.9% of the fund.
The wave of requests pushed the firm to raise its usual redemption cap from 5% to 7%. Blackstone and its employees also invested $400 million to ensure that all withdrawal requests could be met. Shares of rival firms moved lower as well before rebounding later in the day. Broader market indexes were already under pressure as conflict in the Middle East weighed on investor sentiment.
About 24% of Blackstone’s $1.27 trillion in assets under management comes from wealthy individuals. Investment firms have increasingly focused on this group as slower returns have made some institutional investors, including pension funds, more cautious. Blackstone President Jon Gray told CNBC that products allowing retail investors to withdraw money periodically mean they are “trading away a bit of liquidity for higher returns”.Institutions tend to lock up capital for longer periods. Even so, Gray said they “continue to allocate significant amounts to private credit.”
Founded in 1985, Blackstone Inc. (NYSE:BX) is the world’s largest alternative asset manager operating from its headquarters in New York.
12. Moelis & Company (NYSE:MC)
Dividend Yield as of March 13: 5.05%
Upside Potential as of March 13: 46.33%
On March 12, Goldman Sachs lowered its price recommendation on Moelis & Company (NYSE:MC) to $70 from $80. The firm reiterated a Neutral rating on the shares.
Investment banking volumes are up 4% year over year through March 9. The analyst noted that growth has slowed in recent weeks and could turn negative if geopolitical uncertainty continues. That risk is already showing up in bank stocks, which are down about 15% year to date and have lagged the S&P 500 due to multiple compressions, the analyst told investors in a research note. The firm said near-term volatility may continue. Even so, the longer-term outlook for M&A activity remains constructive. The cycle is still seen as being in its middle stages when compared with the trough reached in 2023.
Moelis & Company (NYSE:MC) is a global independent investment bank that provides strategic advice and solutions to a wide range of clients, including corporations, governments, and financial sponsors. The firm supports clients as they pursue strategic goals. It offers integrated financial advisory services across multiple industry sectors.
