In this article, we will take a look at some of the best up-and-coming dividend stocks to invest in.
S&P Global reported that the first half of 2025 marked the strongest start to a year for US IPO activity by deal count since 2021, which saw 227 offerings. This year’s first half recorded 102 IPOs compared with 78 over the same period last year, reflecting a much stronger tone heading into the second half. There had already been growing optimism in the market by December 2024, although uncertainty around tariffs did slow issuance in the first quarter of 2025.
One of the best indicators of future IPO volume is how recently listed companies have been performing. Activity picked up meaningfully from late May through the end of the quarter, with new listings showing strong returns. Circle’s $1.2 billion IPO stood out, surging 168% on its first trading day and maintaining solid momentum afterward.
A separate Reuters report noted that IPOs from insurance companies hit a two-decade high this year as investors gravitated toward businesses seen as more insulated from President Donald Trump’s trade war. Their steady cash flows and durable business models also encouraged private equity firms to bring more of their portfolio companies to market, offering investors relative stability while other sectors were disrupted by rising tariffs, persistent inflation, labor market challenges, and geopolitical volatility.
Dealogic data shows that insurance-related IPOs on US exchanges reached their highest level since 2005.
Given this, we will take a look at some of the best up-and-coming stocks to buy.
Our Methodology:
For this list, we used Finviz stock screener to compile a list of the top stocks that went public in the last 5 years and identified companies that also pay dividends to shareholders. From that list, we picked 14 companies with upside potential of over 10%, based on analysts’ price targets as of November 21. The stocks are ranked according to their upside potential.
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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
14. Enact Holdings, Inc. (NASDAQ:ACT)
Upside Potential as of November 21: 10.02%
Enact Holdings, Inc. (NASDAQ:ACT) is among the best up-and-coming stocks to invest in.
JPMorgan’s Richard Shane trimmed his price target on Enact Holdings, Inc. (NASDAQ:ACT) to $39 from $40 on November 7, keeping a Neutral view after the company’s third-quarter update, according to a report by The Fly.
For Q3 2025, Enact Holdings, Inc. (NASDAQ:ACT) posted $ 311.4 million in total revenue, slightly higher than the $309.5 million recorded a year earlier. Premiums came in at $244.6 million, compared with $249 million in the same period last year. As of September 30, the company was holding $339 million in cash and cash equivalents and another $311 million in invested assets. Management suggested that the combined figure was basically unchanged from the previous quarter, noting that buybacks and the regular dividend largely offset the contribution from its EMICO subsidiary.
New insurance written reached $14 billion for the quarter, a 6% increase from Q2 2025 and 3% higher than the same period in 2024. Of that volume, monthly premium policies made up 97%, while purchase originations accounted for 93%. Primary insurance in force edged up to $272 billion, compared with $270 billion in the prior quarter and $268 billion a year ago. Enact Holdings, Inc. (NASDAQ:ACT) continued to emphasize shareholder returns, distributing $31 million in dividends during the period.
Enact Holdings, Inc. (NASDAQ:ACT) is known as a major private mortgage insurer in the US, supporting lenders by backing mortgage loans and helping more borrowers access homeownership.
13. DT Midstream, Inc. (NYSE:DTM)
Upside Potential as of November 21: 10.2%
DT Midstream, Inc. (NYSE:DTM) is one of the best up-and-coming stocks to invest in.
Morgan Stanley lifted its price target on DT Midstream, Inc. (NYSE:DTM) to $137 from $126 on November 12, while maintaining an Underweight stance, as reported by The Fly. The adjustment came as the firm updated its estimates following what it described as a “relatively in-line midstream and renewable infrastructure” Q3 earnings stretch.
DT Midstream, Inc. (NYSE:DTM) reported Adjusted EBITDA of $288 million for the quarter, up $11 million from Q2. Performance in the pipeline segment was broadly steady, while the gathering segment improved by $10 million thanks to stronger Haynesville volumes. The company also trimmed its 2025 growth capital outlook to between $385 million and $415 million and is projecting year-end leverage of roughly 3.1x.
Management raised its distributable cash flow guidance to a range of $800 million to $830 million, lifting the midpoint by $45 million on the back of lower spending on maintenance, reduced interest costs, and lighter cash taxes. The company also reiterated plans to increase dividends by 5% to 7% annually, keeping the third-quarter payout at $0.82 per share.
DT Midstream, Inc. (NYSE:DTM) operates a broad network of natural gas pipelines, storage infrastructure, gathering systems, compression assets, and related surface facilities across interstate and intrastate markets.
12. Fidelis Insurance Holdings Limited (NYSE:FIHL)
Upside Potential as of November 21: 10.38%
Fidelis Insurance Holdings Limited (NYSE:FIHL) is among the best up-and-coming stocks to invest in.
Goldman Sachs lifted its price target on Fidelis Insurance Holdings Limited (NYSE:FIHL) to $17 from $16.50 on November 19, while maintaining a Sell rating, according to a report by The Fly. The revision followed the firm’s updated model after reviewing the company’s third-quarter results.
For Q3 2025, Fidelis Insurance Holdings Limited (NYSE:FIHL) posted revenue of $652 million, a 5% decline from a year earlier and roughly $25 million short of what analysts were expecting. Even so, gross premiums written reached $797.5 million, marking a 7.5% increase from the third quarter of 2024. The company’s combined ratio improved noticeably, dropping to 79.0% from 87.4% a year ago. Net income came in at $130.5 million, or $1.24 per diluted share, while operating net income was $126.8 million, or $1.21 per diluted share.
Fidelis Insurance Holdings Limited (NYSE:FIHL) continued returning capital to investors, distributing $47.3 million during the quarter through $31.9 million in share repurchases and $15.4 million in dividends. Management reaffirmed its outlook for 6% to 10% full-year top-line growth and indicated confidence in maintaining profitable momentum.
Fidelis Insurance Holdings Limited (NYSE:FIHL) operates as a global specialty insurer and reinsurer, emphasizing value creation through disciplined capital deployment, selective underwriting, and long-term partnerships across its network.
11. American Healthcare REIT, Inc. (NYSE:AHR)
Upside Potential as of November 21: 10.5%
American Healthcare REIT, Inc. (NYSE:AHR) is among the best up-and-coming dividend stocks to invest in.
On November 20, Morgan Stanley increased its price target on American Healthcare REIT, Inc. (NYSE:AHR) to $55 from $52, keeping an Overweight rating, according to a report by The Fly. After reviewing the company’s third-quarter numbers and the broader supply-and-demand backdrop in senior housing, the firm said it has growing confidence in both Welltower and American Healthcare’s ability to capture additional margin upside.
For Q3 2025, American Healthcare REIT, Inc. (NYSE:AHR) reported GAAP net income attributable to controlling interest of $55.9 million, or $0.33 per diluted share. Same-store NOI for the portfolio rose 16.4%, reflecting strong operating momentum. The company also stayed busy on the acquisition front, closing roughly $210.8 million worth of deals during the quarter and more than $575 million in new acquisitions year-to-date.
Management also highlighted a new partnership with WellQuest Living, along with a development pipeline that is expected to cost around $177 million. The company also raised its full-year 2025 normalized FFO guidance to a range of $1.69 to $1.72 per diluted share, up from the prior outlook of $1.64 to $1.68, pointing to better-than-expected organic growth and ongoing improvement in occupancy.
American Healthcare REIT, Inc. (NYSE:AHR) is a publicly traded REIT investing in and operating a broad mix of healthcare real estate, with a focus on senior housing, skilled nursing facilities, and outpatient medical properties across the US, the U.K., and the Isle of Man.
10. Five Star Bancorp (NASDAQ:FSBC)
Upside Potential as of November 21: 14.5%
Five Star Bancorp (NASDAQ:FSBC) is among the best up-and-coming stocks to invest in.
On November 10, Stephen downgraded Five Star Bancorp (NASDAQ:FSBC) to Equal Weight from Overweight, assigning a $37 price target, according to a report by The Fly. Following what the firm calls a “strong” Q3, it believes the business model remains solid with go-forward growth prospects “arguably continuing to get better.” The firm highlighted that the downgrade, however, reflects “more of what we view as a pretty fair current relative valuation,” signaling that it would prefer to take a more constructive stance on the shares at a more attractive entry point.
In Q3, Five Star Bancorp (NASDAQ:FSBC) reported robust growth in loans and core deposits, driven by its successful organic growth strategy, which continues to sustain momentum and enhance demand for its differentiated customer experience. Total loans held for investment rose by $129.2 million, or 3.44% (13.76% annualized), while total deposits climbed $208.8 million, or 5.36% (21.45% annualized).
Five Star Bancorp (NASDAQ:FSBC) maintained a strong cash position, with cash and cash equivalents totaling $580.4 million, representing 14.15% of total deposits as of September 30, 2025, up from 12.42% at the end of June. Deposit growth during the quarter was led by non-wholesale deposits, which more than offset declines in wholesaledeposits. Shareholders received $12.8 million in dividends during the period.
Five Star Bancorp (NASDAQ:FSBC) is a bank holding company based in Rancho Cordova, California, operating through its wholly owned subsidiary, Five Star Bank, which runs nine branches across Northern California.
9. Atmus Filtration Technologies Inc. (NYSE:ATMU)
Upside Potential as of November 21: 16.5%
Atmus Filtration Technologies Inc. (NYSE:ATMU) is one of the best up-and-coming stocks to invest in.
On November 10, Northland raised its price target on Atmus Filtration Technologies Inc. (NYSE:ATMU) to $59 from $50 while maintaining an Outperform rating. The firm described the company’s results as “another strong quarter” and highlighted its continued admiration for Atmus’ “stellar execution and solid shareholder returns,” especially given the weak end-markets it has faced since going public.
In other news, on November 24, Atmus Filtration Technologies Inc. (NYSE:ATMU) announced an agreement to acquire Koch Filter, a manufacturer of air-filtration solutions, from private-equity firm Truelink Capital for $450 million in cash. The company plans to finance the deal, expected to close in the first quarter of 2026, using a combination of cash on hand and borrowings under its credit facility. Atmus also reiterated its revenue guidance for 2025, projecting sales between $1.72 billion and $1.745 billion.
Atmus Filtration Technologies Inc. (NYSE:ATMU) specializes in designing, manufacturing, and selling filtration products- including air, fuel, and coolant filters- for a broad range of heavy-duty vehicles and industrial equipment.
8. Angel Oak Mortgage REIT, Inc. (NYSE:AOMR)
Upside Potential as of November 21: 17.6%
Angel Oak Mortgage REIT, Inc. (NYSE:AOMR) is one of the best up-and-coming stocks to invest in.
On November 18, UBS analyst Doug Harter trimmed his price target on Angel Oak Mortgage REIT, Inc. (NYSE:AOMR) to $9.75 from $10 while maintaining a Neutral rating, as reported by The Fly.
In its Q3 2025 update, Angel Oak Mortgage REIT, Inc. (NYSE:AOMR) noted that the quarter created a constructive backdrop for its business, allowing it to take advantage of opportunities that supported active portfolio growth. Management pointed out that two legacy securitizations were called and retired, with the capital redirected into higher-yielding investments. After the quarter ended, the firm also put a new credit facility in place at favorable rates, broadening its lender base and lowering interest costs.
Angel Oak Mortgage REIT, Inc. (NYSE:AOMR) reported a 13% increase in net interest income from a year earlier and a 2% sequential improvement. Operating expenses fell 13% from the third quarter of 2024 and were 5% lower than in the previous quarter. Treasurer and CFO Brandon Filson emphasized these reductions while discussing the results.
Angel Oak Mortgage REIT, Inc. (NYSE:AOMR) is a real estate finance company that focuses on acquiring and investing in first-lien non-QM loans and other mortgage-related assets across the US market.
7. Jackson Financial Inc. (NYSE:JXN)
Upside Potential as of November 21: 22.5%
Jackson Financial Inc. (NYSE:JXN) is among the best up-and-coming dividend stocks to invest in.
On November 17, Morgan Stanley reduced its price target on Jackson Financial Inc. (NYSE:JXN) to $101 from $106 while maintaining an Equal Weight rating, according to a report by The Fly. The firm updated its insurance-sector models following Q3 results and noted that life insurance earnings generally looked stronger than what recent share price movements might imply. For the property and casualty segment, it anticipates a softening cycle as the industry heads into 2026.
In the third quarter of 2025, Jackson Financial Inc. (NYSE:JXN) reported total revenues of $1.4 billion, a decline of 33.2% from the same period a year earlier. Even so, retail annuity sales reached $5.4 billion, up 2% year over year, reflecting steady demand across the company’s product lineup. Variable annuity sales rose to $2.9 billion, an 8% increase from Q3 2024, supported by higher sales of products without lifetime benefit features.
CEO Laura Prieskorn highlighted that free capital generation $1 billion and free cash flow totaled $719 million over the first three quarters. She noted that quarterly distributions to the holding company over the first nine months came to roughly $815 million. Prieskorn also announced a $1 billion increase in the company’s share repurchase authorization and confirmed a fourth-quarter dividend of $0.80 per share. Management expects capital returns to exceed its 2025 target range of $700 million to $800 million.
Jackson Financial Inc. (NYSE:JXN), mainly through its subsidiary Jackson National Life Insurance Company, offers a wide range of retirement and investment products, with a core focus on annuities across multiple categories.
6. Excelerate Energy, Inc. (NYSE:EE)
Upside Potential as of November 21: 24.4%
Excelerate Energy, Inc. (NYSE:EE) is one of the best up-and-coming dividend stocks to invest in.
On November 10, Wells Fargo lifted its price target on Excelerate Energy, Inc. (NYSE:EE) to $29 from $26 while maintaining an Equal Weight stance. The adjustment reflects updated assumptions tied to the company’s newly announced project in Iraq and the expectation of higher growth-related capital spending following recent project wins.
In October, Excelerate Energy, Inc. (NYSE:EE) signed a finalized commercial agreement to build a fully integrated LNG import terminal in Iraq. The project covers a five-year arrangement for regasification and LNG supply, with options to extend, and includes a minimum contracted offtake of 250 million standard cubic feet per day.
Excelerate Energy, Inc. (NYSE:EE) posted a strong third quarter for 2025. Revenue reached $391.04 million, more than doubling from a year earlier and surpassing analysts’ forecasts by roughly $119.5 million. Operating income rose to $87.2 million, compared with $59.7 million in the same period last year. As of September 30, 2025, the company held $462.6 million in unrestricted cash and cash equivalents, and it reported no letters of credit outstanding under its revolving credit facility.
Excelerate Energy, Inc. (NYSE:EE) operates globally, offering LNG solutions and focusing on the development and management of floating LNG terminals.
5. Cadre Holdings, Inc. (NYSE:CDRE)
Upside Potential as of November 21: 26.8%
Cadre Holdings, Inc. (NYSE:CDRE) is one of the best up-and-coming stocks to invest in.
On November 6, Roth MKM reaffirmed its Buy rating on Cadre Holdings, Inc. (NYSE:CDRE) and set a price target of $49.
Cadre Holdings, Inc. (NYSE:CDRE) delivered strong results in the third quarter of 2025, reporting revenue of $155.8 million, a 42% increase from the same period last year. Gross profit margin stood at 42.7%, while net income reached $10.9 million, or $0.27 per diluted share.
In late October, Cadre Holdings, Inc. (NYSE:CDRE) announced an agreement to acquire Peoria, Arizona-based tactical gear manufacturer TYR Tactical in a $175 million cash and stock deal. This represents Cadre’s sixth and largest acquisition since its IPO and is seen as a significant step in expanding its diversified portfolio of durable safety businesses.
CEO Warren Kanders highlighted TYR Tactical’s advanced engineering capabilities and international presence, including key relationships with military clients in Northern Europe. He added that, over the past 24 months, the company has invested more than $400 million in line with this growth strategy.
Cadre Holdings, Inc. (NYSE:CDRE) specializes in designing, manufacturing, and distributing safety and survivability equipment for first responders, law enforcement, and military personnel, including body armor, duty gear, and bomb suits.
4. Kodiak Gas Services, Inc. (NYSE:KGS)
Upside Potential as of November 21: 28.8%
Kodiak Gas Services, Inc. (NYSE:KGS) is one of the best up-and-coming stocks to invest in.
On November 18, RBC Capital raised its price target on Kodiak Gas Services, Inc. (NYSE:KGS) to $45 from $43 while maintaining an Outperform rating, as reported by The Fly. The analyst noted that the company delivered “solid” third-quarter results, though performance was partly offset by a one-time fee tied to the sale of its Mexico assets. RBC Capital expects ongoing demand for compression services to support future growth.
In the third quarter of 2025, Kodiak Gas Services, Inc. (NYSE:KGS) reported revenue of $322.74 million, slightly down 0.6% from the same period last year. The company’s Contract Services segment reached a record $297.0 million in revenue, up 4.5% from $284.3 million in Q3 2024.
Kodiak Gas Services, Inc. (NYSE:KGS)’s cash position remained robust, with quarterly net cash from operating activities of $113.4 million and discretionary cash flow of $116.7 million, representing a 13.2% increase versus the prior-year quarter. The company returned over $90 million to shareholders through dividends and share repurchases, and now expects full-year discretionary cash flow between $450 million and $470 million.
Kodiak Gas Services, Inc. (NYSE:KGS) is a leading provider of contract compression services in the US, playing a vital role in the infrastructure that supports the safe and reliable production and transportation of natural gas and oil.
3. Corebridge Financial, Inc. (NYSE:CRBG)
Upside Potential as of November 21: 40.6%
Corebridge Financial, Inc. (NYSE:CRBG) is one of the best up-and-coming dividend stocks to invest in.
On November 17, Morgan Stanley analyst Bob Huang downgraded Corebridge Financial, Inc. (NYSE:CRBG) from Overweight to Equal Weight, lowering the price target to $33 from $39, as reported by The Fly. Huang cited a “less attractive” outlook for the shares, noting that potential Federal Reserve rate cuts could weigh on the company’s base spread income. He also highlighted fewer near-term catalysts following the completion of Corebridge’s variable annuities (VA) reinsurance transaction.
Corebridge Financial, Inc. (NYSE:CRBG) posted another strong quarter, with its diversified businesses generating $12.3 billion in premiums and deposits, marking a recent high. The holding company ended the quarter with $1.8 billion in liquidity, which includes partial proceeds from the VA reinsurance deal.
The VA transaction has simplified the company’s structure, improved its risk profile, and strengthened earnings quality while supporting long-term growth potential. The capital ratios of Corebridge Financial, Inc. (NYSE:CRBG)’s insurance entities remain above target. During the period, the company returned $509 million to shareholders, including $381 million in share repurchases, representing an 80% year-to-date payout ratio.
Corebridge Financial, Inc. (NYSE:CRBG) offers retirement solutions and insurance products, including annuities, life insurance, and retirement plans for institutional clients.
2. Chord Energy Corporation (NASDAQ:CHRD)
Upside Potential as of November 21: 40.9%
Chord Energy Corporation (NASDAQ:CHRD) is one of the best up-and-coming stocks to invest in.
On November 20, Morgan Stanley analyst Devin McDermott lowered the price target on Chord Energy Corporation (NASDAQ:CHRD) to $123 from $128 while maintaining an Equal Weight rating, according to a report by The Fly. The update reflects revised 2025 guidance and preliminary 2026 expectations for North American energy stocks. The firm continues to favor gas over oil investments.
In the third quarter of 2025, Chord Energy Corporation (NASDAQ:CHRD) reported revenue of $1.31 billion, down 9.5% from the same period last year but exceeding analysts’ estimates by $238.4 million. Adjusted free cash flow totaled roughly $230 million, with 69% returned to shareholders. After paying a base dividend of $1.30 per share, all remaining capital was used for share repurchases. Since completing its combination with Enerplus last year, Chord has reduced diluted shares outstanding by about 11%.
Chord Energy Corporation (NASDAQ:CHRD) also completed the XTO transaction on October 31, which led to an upward revision of fourth-quarter production guidance by 4,000 barrels of oil per day and an additional $15 million in full-year 2025 capital to support higher maintenance production levels for 2026.
Chord Energy Corporation (NASDAQ:CHRD) is an independent exploration and production company focused on high-quality, long-lived assets, primarily in the Williston Basin.
1. Karat Packaging Inc. (NASDAQ:KRT)
Upside Potential as of November 21: 55.5%
Karat Packaging Inc. (NASDAQ:KRT) is one of the best up-and-coming stocks to invest in.
On November 14, BofA downgraded Karat Packaging Inc. (NASDAQ:KRT) from Buy to Underperform, lowering the price target to $22 from $27, as reported by The Fly.
In the third quarter of 2025, Karat Packaging Inc. (NASDAQ:KRT) posted record net sales of $124.5 million, up 10.4% from $112.8 million in the same period last year. Net income, however, declined to $7.6 million from $9.3 million a year earlier, while net income margin fell to 6.1% from 8.2% in the prior-year quarter.
Despite a notable rise in import costs, driven mainly by higher duties and tariffs which increased to 14.4% of net sales compared with 8.6% in the same quarter last year, Karat Packaging Inc. (NASDAQ:KRT) was able to maintain a gross margin of 34.5%. The company continues to pursue its strategy of diversifying sourcing and strengthening the resilience of its global supply chain. Compared with the second quarter, US sourcing increased to 20.4% from 14.6%, while imports from Taiwan fell to 41.6% from 58.0%. Karat Packaging plans to continue monitoring tariff developments closely and adjust its sourcing strategy as needed to preserve its competitive edge.
Karat Packaging Inc. (NASDAQ:KRT) is a specialty distributor and manufacturer of a broad range of disposable foodservice products and related items, primarily serving national and regional restaurants and other foodservice operations across the US.
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