5 Best Income Stocks to Buy According to Analysts

In this article, we discuss 5 best income stocks according to analysts. If you want to read our detailed analysis of dividend investing and the performance of dividend stocks in the past, go directly to read 15 Best Income Stocks to Buy According to Analysts. 

5. Analog Devices, Inc. (NASDAQ:ADI)

Upside Potential as of May 1: 22.4%
Average Price Target Based on Analyst Ratings: $220.3

Analog Devices, Inc. (NASDAQ:ADI) is an American semiconductor manufacturing company that also specializes in data conversion. In February, BMO Capital raised its price target on the stock to $215 with an Outperform rating on the shares, highlighting the company’s quarterly performance. The firm also appreciated the company’s strong free cash flow growth.

Analog Devices, Inc. (NASDAQ:ADI) currently pays a quarterly dividend of $0.86 per share and has a dividend yield of 1.91%, as of May 1. The company has raised its payouts 20 times in the past 19 years, which makes it one of the best dividend stocks on our list.

According to Insider Monkey’s Q4 2022 database, 75 hedge funds owned stakes in Analog Devices, Inc. (NASDAQ:ADI), up from 66 in the previous quarter. These stakes have a collective value of over nearly $5 billion.

Giverny Capital mentioned Analog Devices, Inc. (NASDAQ:ADI) in its Q4 2022 investor letter. Here is what the firm has to say:

“Ashtead Group and Analog Devices, Inc. (NASDAQ:ADI) were new purchases, made in May. They both performed well from our original purchase prices and I believe we upgraded the quality of our portfolio by adding them.

We established four new positions during the year, each of about 2%: Analog Devices, Ashtead Group, Floor & Décor, and Installed Building Products. We discussed these in prior letters and I’m pleased to report that Ashtead and Analog were among our best performing positions for the year.”