3 Dividend Stocks With Industry-Beating Yields

Major indices rallied last week, although the pace of the surge has moderated compared to the beginning and middle of April. With that being said, the S&P 500’s 10.4% gain has been the index’s largest since November of 2020. As of Friday, roughly 63% of the companies in the index have reported earnings — and since results have been better than expected, a certain dose of optimism has crept back into the markets.

In tandem with this, it is looking increasingly likely that Kevin Warsh will become the next Chair of the Federal Reserve, and this personnel change could lead to earlier-than-expected rate cuts.

There could be an interesting convergence at play. Rate cuts would make fixed-income and cash yields less attractive. Conversely, dividend-paying stocks, which still benefit from capital appreciation, become a more attractive option.

Why is this interesting? Because dividend stocks have already been outperforming. Since the start of the year, the S&P 500 High Dividend Index has provided a 7.98% return, versus 5.42% for the S&P 500. On a relative basis, that’s an outperformance of roughly 47% — and that’s without the tailwind that could be coming.

Dividends are often (and unfairly) overlooked. They’ve provided roughly one-third of the stock market’s total return since the 1920s. However, finding the right tickers isn’t simple. You want to strike a balance between the potential for high capital appreciation, stable, high, and sustainable payments, and a valuation where there’s still room for upside.

Thankfully, there’s a way for you to expedite the process significantly — all you have to do is turn to…

Income Stock Strategy

Our in-house rating system evaluates 4,600 stocks each day by taking into account 115 fundamental factors and metrics across 7 categories. Those insights are distilled into a simple, user-friendly metric — a stock’s Zen Rating.

The highest rating, an A, is only given to stocks that rank in the top 5% for overall fundamentals. That immediately allows you to focus on a smaller pool of high-quality tickers — but it does leave roughly 230 names to consider on any given day. However, there’s a way to make your research even more focused — by taking a look at one of our exclusive  Zen Strategies.

There are 11 Zen Strategies portfolios in total — and each consists of just 7 carefully selected stocks. 

Today, we’ll be taking a look at a portfolio that has an all-time annual return of 25.94%. It has provided a 16.55% return since the start of the year, blowing the S&P 500’s 5.42% gain in the same timeframe out of the water. This week, the spotlight is on our  Income Stock Strategy.

Bristol Myers Squibb (BMY)

Bristol Myers Squibb is a $118 billion market cap pharma giant with an incredibly diverse portfolio of treatments that spans oncology, hematology, immunology, and cardiovascular disease. BMY currently ranks in the top 2% of the stocks that we track — in fact, it ranks 55th overall, and it’s the top-rated stock in the General Drug Manufacturer industry, which itself ranks as 5th out of the 145 industries that we track.

The thing that instantly jumps off the page at you when it comes to BMY is the valuation relative to growth prospects. At a forward P/E of just 9.27x, it ranks in the top 4% of stocks for Value — and when you look at the 22 components that make up our Growth rating, it ranks in the top 30%. Bristol Myers Squibb shares also rank in the top 11% for Financials and the top 3% for Safety. All in all, that’s a great valuation, above-average growth prospects, a very healthy balance sheet, and stable revenue inflows.

When it comes to the dividend, we have a 3.23% yield, which is decently above the industry average of 2.79%. The dividend is stable: it has increased over the past 10 years without any major drops, and the payout ratio of 70% is perfectly in line with a stable, mature business.

Sentiment is the only problem area here, although that’s a bit of an overstatement. The stock gets a C rating in this category, as the average price target implies a low upside of about 6%. With that being said, recent coverage from top analysts, Guggenheim’s Seamus Fernandez (ranked in the top 3%) and BofA’s Jason Gerberry (ranked in the top 14%), implies upside of 23.67% and 15.08%, respectively.

BMY delivered its 11th consecutive earnings beat on April 30, but the stock lost some 3% in value after that on account of profit-taking. With the valuation being as enticing as it is, there’s no point in waiting for a better entry.

International Seaways (INSW)

Our second pick, International Seaways, is a $4.2 billion tanker operator that owns and operates a global fleet of crude oil and refined product carriers. INSW ranks in the top 4% of the stocks that we track, and it’s the top-rated stock in the Oil & Gas Midstream industry.

Momentum is the strongest Component Grade here — with a 41.01% rally in the past 3 months on the book, INSW scores in the top 5% in this category. However, it isn’t a one-trick pony. The stock ranks in the top 7% for both Sentiment and Financials, indicating significant smart money accumulation plus a fortress balance sheet. Lastly, it’s above average when it comes to Growth and Value — top 32% and top 24%, respectively.

The dividend, however, is the biggest selling point here. INSW’s yield stands at 5.14%, compared to the industry average of 3.48%. At a payout ratio of 46.7%, it’s also quite sustainable; moreover, the dividend has grown over the course of the past 7 years.

So, what about the downsides? INSW gets a C for Safety, where it scores in the 54th percentile. That means equivalent to or better than 54% of stocks — conversely, it means worse than 46% of stocks. Just barely above average — not a huge issue by any measure, but certainly something to keep in mind.

Finally, we also have a pattern of strong execution. International Seaways has beaten EPS estimates for the past 6 quarters in a row. The next earnings report is due Thursday, May 7 — and a good print could easily serve to bolster this month’s 17.87% return.

Buenaventura Mining (BVN)

Our third pick, Buenaventura Mining, is an $8.2 billion Peruvian mining company with exposure to gold, silver, copper, zinc, and lead. BVN ranks in the top 4% of the stocks that we track, and it’s one of the strongest-rated names in the precious and base metals space.

BVN ranks in the top 5% for Momentum, thanks to a 133% rally over the past 365 days, and the top 3% for Sentiment, which tells us two important things: the stock has already attracted serious market attention, and institutional investors are broadly aligned with that strength. Value is also impressive, with BVN ranking in the top 16% of stocks in that category thanks to a trailing P/E ratio of just 10.53x, while Growth sits in the top 36%. Lastly, in terms of Financials, it’s in the top 26%.

As far as the dividend goes, Buenaventura Mining offers a yield of 2.93%, blowing the industry average of 0.93% out of the water. BVN has a payout ratio of 35.5%, so the distributions aren’t hampering investments that could lead to capital appreciation.

There is one clear weak spot: Safety. BVN scores in the 34th percentile here, meaning it ranks better than only 34% of stocks in this category, and worse than 66%. While far from ideal, that isn’t really shocking for a mining stock, and is easily overshadowed by BVN’s strong suits. 

On April 29, the company reported Q1 2026 earnings and beat EPS estimates for the fifth quarter in a row. With gold’s recent pullback, there’s now plenty of upside for miners, particularly as major banks have maintained their bullish price targets on the precious metal.

Interested In More Great Stock Picks? 

The 3 stocks highlighted above are just a fraction of what you get from our proven Income Stock Strategy.

That’s because each day our system recalibrates — and Zen Strategies members get access to the top 7 technology stocks based on 115 different parameters that point to outperformance. 

See all Top 7 Income stocks here >

However, maybe income stocks aren’t what you’re after right now. Perhaps you would like to see all 11 of our market beating strategies including Growth, Momentum, Value, and our coveted AI Factor model. 

Each featuring the top 7 stocks.

Each featuring tremendous performance

We spell it all out in this timely presentation below that lives up to its name:

10 Minutes a Month to Beat the Market > 

What to Do Next?

• 77 Best Stocks NOW! >
• Options Trading with the Zen Ratings >
• 2 New Stocks to Buy from Steve Reitmeister >

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