After a historically bad performance during the first half of the year, dividend stocks have come under quite a bit of scrutiny lately. A new Bloomberg analysis of the dividend stock underperformance in 2023 observed, “Investors wanted exposure to companies with a history of paying out profits as a precaution amid the Federal Reserve’s most aggressive tightening cycle in 40 years. Instead they were saddled with underperforming companies that proved especially vulnerable when yields shot higher.”
Clearly, dividend stocks are facing a tough time in this market. However, it's worth pointing out that there are still some names in the group that combine consistent dividend income with steady growth. Here, we've highlighted three of those names - all top-rated by analysts, with room for upside in the year ahead.
