Dividend Diamonds in the Rough: 7 Overlooked Stocks With Huge Payout Potential

Core Insights - The article emphasizes the potential of overlooked dividend stocks, suggesting they may offer greater upside compared to popular high-yield dividend stocks due to being undervalued and less followed by market participants [1] Group 1: Overview of Overlooked Dividend Stocks - Overlooked high-yield stocks can provide substantial upside potential alongside steady dividend gains [1] - The gap between trading price and underlying value can narrow over time, leading to above-average gains [1] Group 2: Individual Stock Analysis - Alliance Resource Partners (ARLP): Specializes in coal mining with a forward distribution yield of 11.68% and a stock price trading at 6x forward earnings, having increased its payout by 40% in early 2023 [2] - DHT Holdings (DHT): Operates crude oil tankers with a forward dividend yield of 9.52% and trades at 9x forward earnings, benefiting from favorable market conditions [3][4] - Kronos Worldwide (KRO): Manufactures titanium dioxide pigments, has a forward dividend yield of 5.89%, and shares have rallied over 63% in the past year as it returned to profitability [5] - Bank of NT Butterfield & Son (NTB): An offshore bank with a forward dividend yield of 5.2%, trading at 7.6 times forward earnings, and reported higher-than-expected revenue and earnings [6][7] - Opera (OPRA): A browser provider with a trailing 12-month dividend yield of 5.45% and a valuation of 16.1 times forward earnings, seen as a potential AI growth stock [8] - Stellantis (STLA): A global automotive holding company with a forward yield of 7.4%, trading at 4x earnings, and raised its dividend by 16% earlier this year [9] - Townsquare Media (TSQ): A micro-cap stock with a forward yield of 7.14%, trading at 8x forward earnings, and raised its quarterly payout by 5.3% [11]