3 Overlooked Dividend Stocks That Analysts Love

Dividend stocks are always a popular choice among investors. Because dividend-paying stocks tend to be well-established companies with a steady base of earnings growth, they're often favored by investors seeking relative stability and passive income over outsized growth and multi-bagger returns.

As we head deeper into what's historically the most volatile month of the year for stocks, here's a closer look at three reliable dividend picks that are top-rated on Wall Street, but flying under the radar of most investors.

#1. Americold Realty Trust

Americold Realty Trust (COLD) is a real estate investment trust (REIT) specializing in temperature-controlled warehouse operations for the industrial sector, primarily focused on keeping food refrigerated. The company is the second-largest provider of cold storage services, operating in the United States and internationally. 

Valued at $7.72 billion by market cap, shares of Americold are down 11.3% year-to-date, lagging behind the broader equities market. 

COLD pays a quarterly dividend of $0.22, which translates to a yield of 3.24% at current levels. The REIT has paid dividends consistently for the past seven years.

On Aug. 8, the company reported second-quarter revenue of $661 million - up 1.7% year over year, but slightly short of consensus estimates. Core funds from operations (FFO), a key metric for REITs, arrived at $0.33 per share, while adjusted FFO of $10.9.4 million, or $0.38 per share, easily beat Wall Street's forecast.

Among COLD's top 25 customers, food industry giants like Walmart (WMT), General Mills (GIS), Unilever (UL), Kraft-Heinz (KHC), and Tyson (TSN) are all represented. Fifteen of the top 25 customers are investment grade, and 100% utilize multiple facilities, with 80% in a fully dedicated facility. However, no one customer represents more than 6% of revenue, adding to Americold's earnings stability.

Wall Street analysts are bullish on Americold’s prospects, with a consensus "strong buy" rating. The average 12-month price target of $31.58 suggests a 17.6% upside potential.

#2. Opera Limited 

Founded in 1995, Opera Limited (OPRA) is a Norwegian software company primarily known for its innovative web browsers for both mobile and desktop devices. The company's offerings include the popular Opera and Opera GX browsers, which cater to both general and niche markets like gaming. Opera also provides artificial intelligence (AI)-powered personalized news through Opera News, and offers a variety of other services, including Opera Ads and GameMaker Studio. The Google partner currently serves 298 million monthly active users across the world.

Valued at $1.28 billion by market cap, shares of this European tech company have gained 29% over the past 52 weeks, and are up 10.7% on a YTD basis.

OPRA is a relatively new dividend stock, and just started payments in 2023. However, its semi-annual payout of $0.40 per share translates to a hefty yield of 5.52%. 

Opera delivered strong Q2 results in late August that topped analysts' expectations. Revenue grew 17% to $109.7 million, while operating profit improved to $21.9 million. Earnings per share came in at $0.22, beating Wall Street's $0.17 estimate. Opera's advertising revenue increased by 20% to $64.6 million, while search revenue was up 15% to $44.5 million. 

Net cash flow from operating activities arrived at $17.4 million, or 65% of adjusted EBITDA, while free cash flow from operations checked in at $13.5 million, or 51% of adjusted EBITDA. Opera ended Q2 with cash and equivalents of $104.4 million.

Management also hiked its guidance. For the full year, Opera now expects revenue of $461 million to $467 million, up 17% year-over-year, which topped Wall Street's $460 million consensus. Adjusted EBITDA is now forecast between $110 million and $113 million, an increase of 24% year-over-year, which surpassed analysts' $109.8 million estimate.

Following these impressive quarterly results, Opera's shares shot up 13% in a single trading session on Aug. 22.

OPRA stock has a unanimous "strong buy " rating from all four analysts in coverage, and an average price target of $22. This suggests an expected 51.4% upside potential from the current price.

#3. Nomad Foods

UK-based Nomad Foods (NOMD) is the leading frozen food company in Europe, known for its well-established brands like Birds Eye, Findus, and iglo. The company specializes in a range of frozen food categories, including fish, vegetables, poultry, and ready-made meals. Nomad Foods holds an 18% market share in Western Europe’s frozen food market, and gets about 60% of its revenues from frozen fish and vegetables.

Valued at $2.9 billion by market cap, shares of this leading food company have risen about 22.3% over the past 52 weeks, and 6.1% on a YTD basis. NOMD is now trading at just 9.32x forward adjusted earnings, which is a healthy discount to the sector median of 17.6x and its own five-year average of 12.5x. This indicates that the stock is at an excellent valuation to grab now.

Nomad Foods also pays a quarterly dividend of $0.15, and yields 3.33% at current levels.

On Aug. 7, Nomad reported quarterly results for Q2 2024. Revenue rose 1.1% to $822.61 million, but fell slightly short of estimates, while adjusted EPS of $0.48 surpassed expectations. 

“This year is proving to be pivotal for our business as we have shifted from protecting profitability during a once-in-a-generation inflation shock to driving our volume and mix-driven growth," said Noam Gottesman, Nomad Foods Co-Chair and Founder.

For fiscal year 2024, Nomad backed its view for revenue growth of 3-4%, with adjusted EBITDA growth of 4-6%. 

All six analysts following the stock have a “strong buy” rating on NOMD, with a mean price target of $24, which implies approximately 34% upside potential.

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On the date of publication, Nauman Khan 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.