5 Extreme Dividend Stocks With Upside Potential

3. American Eagle Outfitters, Inc. (NYSE:AEO)

Number of Hedge Fund Holders: 27

Dividend Yield: 5.6%

American Eagle Outfitters, Inc. (NYSE:AEO) is a specialty retailer offering clothing, accessories, and personal care products under two brands: American Eagle and Aerie. This May, Corey Tarlowe, an analyst at Jefferies Financial Group, indicated that the company’s shares harbored an upside potential of 132%, making it one of the best extreme dividend stocks with upside potential.

Deutsche Bank analyst Gabriella Carbone holds a Buy rating on American Eagle Outfitters, Inc. (NYSE:AEO) shares as of this May.

UBS analyst Jay Sole also noted this June that American Eagle Outfitters, Inc. (NYSE:AEO) is underappreciated in the retail sector at present. The bank’s channel checks revealed that the company ranks fourth in non-athletic wear brands on the basis of aided and unaided awareness. UBS continues to hold its Buy rating on its shares.

In the first quarter of 2022, 27 hedge funds held stakes in American Eagle Outfitters, Inc. (NYSE:AEO). Their total stake value was $633 million.