Overlooked dividend stocks are hidden gems.
They may not be widely discussed as other, more popular dividend stocks, but they offer compelling yields and a good deal of upside potential.
Plus, it never hurts to hold dividend stocks – especially when markets get uncontrollably volatile. Not only can they help protect your portfolio, but they can help generate healthy passive income along the way.
That being said, here are three overlooked dividend stocks you may want to consider.
American States Water (SYM: AWR)
With a yield of 2.32%, Dividend King, American States Water (AWR) provides water and electric services with a strong history of consistent dividend increases. In fact, it’s paid out a dividend every year since 19321.
Earlier this month, AWR approved a quarterly dividend of $0.4655 per share – its 356th consecutive dividend – which is payable on June 3 to shareholders of record as of May 19. Even better, it just blew earnings out of the water.
In its first quarter, EPS of 70 cents beat by three cents. Revenue of $148.01 million, up 9.4% year over year, beat by $2.16 million. Plus, analysts at Wells Fargo just upgraded AWR to an equal weight rating with a price target of $84.
Toll Brothers (SYM: TOL)
Oversold and starting to pivot higher, Toll Brothers (SYM: TOL) also just raised its dividend by 9% to 25 cents per share, which was paid on April 25 to shareholders of record as of April 11. It’s also the fifth consecutive year the company raised its dividend.
The luxury real estate sector is also still in high demand.
Even with higher interest rates, affluent buyers are still buying. “People with the means to buy high-end homes are jumping in now because they feel confident prices will continue to rise,” said David Palmer, a Redfin Premier agent, as quoted by Kiplinger.com. “They’re ready to buy with more optimism and less apprehension. It’s a similar sentiment on the selling side.”
Equity Residential (SYM: EQR)
With a yield of 4%, Equity Residential (NYSE:EQR) is one of the largest multifamily REITs on the market. It has about 312 properties across the U.S., including 84,018 rental units. It just paid out a dividend of $0.6925 on April 17 to shareholders of record as of March 31.
Recent earnings were also healthy.
In its most recent quarter, the company’s funds from operations (FFO) were in line at $1. Revenue of $766.78 million, up 5.4% year over year, beat by $11.85 million.
“CEO Mark Parrell highlighted that Equity Residential finished 2024 with “solid same-store revenue results” exceeding the midpoint of initial expectations, though bad debt improvement slowed in Q4. The company achieved same-store expense growth of 2.9% for 2024,” added SeekingAlpha.com.
