3 Dividend Stocks Beating the Market Chaos While Analysts Rate Them a "Strong Buy"

3d illustration inflation and deflation graph by Deepadesigns via Shutterstock

U.S. tariffs have thrown the market into disarray, leading to massive sell-offs. On the other hand, some investors have decided to stay on the sidelines until the markets calm. This is rarely a good idea, as staying invested beats timing the market almost every time.

For those who prefer to stay invested, like myself, several stocks offer an alternative to the wait-and-see approach. For example, several companies distinguished themselves from the competition through exceptional financials over their last fiscal year.

So, today, I’ll screen for quality dividend stocks and arrange them by yield.

How I Came Up With The Following Quality Dividend Stocks

With Barchart’s Stock Screener tool, I used the following filters to get my list: 

  • Net Income Growth: More than 50%. Though a wider review of the company’s performance is often the best way to go, reviewing its bottom line can yield valuable insight into its financial health and viability. This is because a sharp rise in profitability can signify effective cost management and successful execution of growth strategies - attributes perfect for long-term portfolios. 
  • Number of Analysts: 12 or more. I’ve limited the results to companies covered by more analysts as more data points strengthen the core rating. 
  • Dividend Payout Ratio: 30% to 50%. The dividend payout ratio indicates how much a company pays shareholders out of its after-tax earnings. 30% to 50% is generally a healthy range, indicating that the company is generous with its shareholders while leaving enough resources for business development. 
  • Current Analyst Rating: 4.5 to 5 (Strong Buy). 
  • Annual Dividend Yield: Over 0.01%. This is to ensure that only dividend-paying companies appear on this list. 

With these filters set, I ran the screen and got exactly four results: 

I arranged the list based on the highest to lowest yields. Since we’re looking for relatively consistent dividend-paying companies, I removed Ryanair since it only started paying dividends in 2024. With that settled, I’ll discuss the results from top one to three, starting with: 

Permian Resources Corp (PR)

Dividend Payout Ratio: 46.49%

Permian Resources Corp. is an independent oil and natural gas company focused on exploring, developing, and producing unconventional oil and natural gas reserves. It primarily operates in the Permian Basin, one of the most prolific and resource-rich oil regions in the United States. It is the second-largest pure-play exploration and production (E&P) company in the Basin. 

Permian Resources pays 60 cents per share annually, which translates to an excellent 4.6% approximate yield based on current prices. Its dividend is supported by a strong 2024, where net income attributable to common stockholders increased by 106.74% to $984.7 million. Wall Street analysts rate PR stock a strong buy

Baker Hughes Company (BKR)

Dividend Payout Ratio: 34.97%

Next up is Baker Hughes Company, an energy technology company that provides solutions and digital services for the oil and gas industry. It offers a comprehensive portfolio, including drilling, production, processing technologies, advanced data analytics, and artificial intelligence tools. The company also advocates for sustainability and efficiency through carbon emission reduction initiatives.

The company pays a 23-cent quarterly dividend, which reflects a 92-cent annual rate and translates to an approximate 2.5% yield. Its bottom line was up 53.32% in 2024, and analysts are optimistic about its prospects, rating BKR stock a strong buy

Eli Lilly and Company (LLY)

Dividend Payout Ratio: 41.28%

Last on the list and one of the handful of companies that are nearing the trillion-dollar mark is Eli Lilly and Company. It's a global pharmaceutical firm known for its drug development and pioneering medical research. The company discovers, manufactures, and markets treatments for various medical conditions and is well-known for its blockbuster, first-in-class drug, Mounjaro

As it stands, Eli Lilly is the lowest-yielding stock on this list at roughly 0.8% - based on its current $6 annual dividend. However, it is also the best dividend growth stock out of the three with a 101.55% dividend increase over the last five years - perfect for long-term portfolios if the company maintains its dividend growth trajectory. It also boasts triple-digit earnings growth in 2024 (102.08%) and a strong buy rating from analysts. 

Final Thoughts

These three stocks offer excellent financial performance and relatively stable and strong dividend income for investors. However, volatility may affect overall returns in the short term. 

And, again, that’s the beauty of investing in quality dividend stocks. They offer a certain degree of protection against economic waves now while still maintaining the potential for capital growth over the long term. Still, regardless of how “safe” some stocks are, due diligence is required for all investments, so don’t neglect your research. 


On the date of publication, Rick Orford did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.