5 Best 5% Dividend Stocks To Buy According To Analysts

In this article, we discuss 5 best 5% dividend stocks to buy according to analysts. If you want to read our detailed analysis of dividend stocks and their performance over the years, go directly to read 11 Best 5% Dividend Stocks To Buy According To Analysts. 

5. Lincoln National Corporation (NYSE:LNC)

Upside Potential as of April 12: 28.5%
Average Price Target Based on Analyst Ratings: $27.13

Lincoln National Corporation (NYSE:LNC) is an American insurance company that offers multiple insurances and other investment management services to its consumers. In April, RBC Capital maintained a Sector Perform rating on the stock with a $31 price target. The stock has an average upside potential of 28.5%, as of April 12.

One of the best dividend stocks on our list, Lincoln National Corporation (NYSE:LNC) currently pays a quarterly dividend of $0.45 per share. The company has been rewarding shareholders with growing dividends for the past 11 years. The stock’s dividend yield on April 12 came in at 8.73%.

At the end of Q4 2022, 36 hedge funds tracked by Insider Monkey reported having stakes in Lincoln National Corporation (NYSE:LNC), valued at roughly $505 million collectively. Lyrical Asset Management was the company’s leading stakeholder in Q4.

4. Telephone and Data Systems, Inc. (NYSE:TDS)

Upside Potential as of April 12: 38.02%
Average Price Target Based on Analyst Ratings: $15.50

Telephone and Data Systems, Inc. (NYSE:TDS) is a telecommunications services company that provides wireless products and services to its consumers. The company is headquartered in Chicago, US. The company pays a quarterly dividend of $0.185 per share, having raised it by 3% in February this year. Through this hike, the company took its dividend growth streak to 48 years, which makes it one of the best dividend stocks on our list. The stock has a dividend yield of 6.61%, as of April 12.

At the end of Q4 20222, 20 hedge funds tracked by Insider Monkey reported having stakes in Telephone and Data Systems, Inc. (NYSE:TDS), up from 13 in the previous quarter. These stakes have a collective value of over $67.8 million. GAMCO Investors was the company’s leading stakeholder in Q4.

3. Medical Properties Trust, Inc. (NYSE:MPW)

Upside Potential as of April 12: 44.6%
Average Price Target Based on Analyst Ratings: $12.6

Medical Properties Trust, Inc. (NYSE:MPW) is an American real estate investment trust company that invests in healthcare facilities. On February 16, the company declared a quarterly dividend of $0.29 per share, which was in line with its previous dividend. The company is one of the best dividend stocks on our list as it has raised its payouts for nine years in a row. The stock has a dividend yield of  13.4%, as of April 12.

In April, Barclays maintained an Overweight rating on Medical Properties Trust, Inc. (NYSE:MPW) with a $12 price target, appreciating the company’s management. The stock has an average upside potential of 44.6%, as of April 12.

Medical Properties Trust, Inc. (NYSE:MPW) was a popular stock among hedge funds in Q4 2022 with 28 funds in Insider Monkey’s database owning stakes in the company, up from 23 in the previous quarter. These stakes are valued at $367.5 million collectively.

2. U.S. Bancorp (NYSE:USB)

Upside Potential as of April 12: 46.02%
Average Price Target Based on Analyst Ratings: $51.8

U.S. Bancorp (NYSE:USB) is a Minnesota-based bank holding company that offers a wide range of financial services to its consumers. In April, Barclays maintained an Overweight rating on the stock with a $52 price target, ahead of the company’s Q1 results. The stock’s average upside potential as of April 12 came in at 46.02%.

U.S. Bancorp (NYSE:USB), one of the best dividend stocks, offers a quarterly dividend of $0.48 per share. The company has been raising its dividends consistently for the past 12 years. The stock has a dividend yield of 5.42%, as recorded on April 12.

The number of hedge funds tracked by Insider Monkey owning stakes in U.S. Bancorp (NYSE:USB) grew to 58 in Q4 2022, from 52 in the previous quarter. The collective value of these stakes is over $2.6 billion. Among these hedge funds, First Eagle Investment Management was the company’s leading stakeholder in Q4.

1. British American Tobacco p.l.c. (NYSE:BTI)

Upside Potential as of April 12: 61.3%
Average Price Target Based on Analyst Ratings: $57.3

British American Tobacco p.l.c. (NYSE:BTI) is a multinational manufacturing company, based in London. The company specializes in the production of cigarettes, tobacco, and other related products. The company is among the best dividend stocks on our list as it has raised its dividends consistently for the past 23 years. It pays a quarterly dividend of $0.735 per share and has a dividend yield of 7.97%, as of April 12.

At the end of December 2022, 19 hedge funds tracked by Insider Monkey owned stakes in British American Tobacco p.l.c. (NYSE:BTI), up from 14 a quarter earlier. The collective value of these stakes is over $2.1 billion.

Distillate Capital Partners LLC mentioned British American Tobacco p.l.c. (NYSE:BTI) in its Q1 2022 investor letter. Here is what the firm has to say:

“Distillate Capital’s International FSV Strategy is less expensive, more fundamentally stable, and less levered than the benchmark All Country World Ex U.S. (ACWI-EX US) Index.The largest new position is British American Tobacco (NYSE:BTI), which was not owned previously due to leverage, but now passes that threshold and offers an 11% free cash flow to market cap yield.”

You can also take a look at 11 High-Dividend Stocks Picked By Billionaire Ray Dalio and 10 Best EV Battery Stocks Under $10

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