11 Very High Yield Dividend Stocks With Upside Potential

Fahad Saleem
Updated 8 min read

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In this article, we will take a look at the top 11 very high yield dividend stocks with upside potential. To see more such companies, go directly to 5 Very High Yield Dividend Stocks With Upside Potential.

Dividend stocks remained the favorite stock picks of investors last year amid rising volatility, inflation and geopolitical risks. While the start of 2023 was brimming with optimism, causing tech stocks to rally, fresh data is pointing to continually stubborn inflation which will force the Federal Reserve to raise interest rates at least one more time in 2023, according to analysts. This scenario has brought dividend stocks in the limelight again in 2023.

The Importance of High Dividend Stocks in 2023

Jeffrey Kleintop, chief global investment strategist at Charles Schwab, gave an interview to Bloomberg in December 2022 in which he talked about high dividend stocks and scenarios where the Federal Reserve might not be able to pause rate hikes like everyone was expecting near the end of 2022.

Kleintop  said during his interview that he believed volatility is going to remain high in 2023.

“What investors should be doing is focusing on what’s worked over the last six months, really, what’s worked in 2022… and that is high dividend paying stocks,” Kleintop said.

Kleintop also said that high dividend stocks outperformed in 2022 and they were continuing to do so in the last quarter of 2022. He further added that high dividend stocks were performing well in Asia, Europe, US and Canada.

Another interesting point highlighted by the analyst is that for investors looking to buy high dividend stocks, markets outside of the US is where they should look at. Kleintop said that the US markets are usually home to high-growth tech stocks. According to Kleintop, international markets outperformed the US stock market in 2022 for the first time in a decade, and this could become a trend in the future.

While the analyst at that time said the he’d welcome any rate hike pauses, he cautioned that things could change if something happens outside of the Federal Reserve’s control. The analyst said that he was surprised no one was asking Jerome Powell about the possible implications of the reopening of China on commodity prices and overall inflation. Kleintop rightly said at the time that millions of people coming back to the economy after a long shutdown could cause a spike on global CPI and make it impossible for the central banks to stop their rate hikes.

In hindsight, Jeffrey Kleintop’s comments look prescient as latest data has shown that inflation is not slowing down as much as the Federal Reserve had expected and labor markets in the US remain strong. Other factors that seem to be out of control of the Federal Reserve is the rising consumer spending on travel and tourism.

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