Dividend income is one of the best ways to build and secure portfolios for the long term. When reinvested, dividends can easily become a second income later on. Take Warren Buffet’s legendary $1.3 billion investment in Coca-Cola, for example. That investment, made at the end of the 1980s, now earns him more than $700 million annually. It just goes to show that with time, the right investments can turn into goldmines. Today, I’m on the hunt for some overlooked income stocks, and to get the list, I used the following screen:
- Debt to Equity ratio of less than 75%,
- Current ratio (current assets/current liabilities) greater than 2 ,
- A strong buy rating from analysts.
Then, I sorted the list based on the company’s dividend yield from highest to lowest.
Alliance Resource Partners LP (ARLP)
A major player in the coal markets in the US, Alliance Resource Partners, L.P. (NASDAQ:ARLP) markets and produces coal for various industrial and international customers, as well as domestic utility companies. The company’s operations can be divided into four segments:
- Appalachia Coal Operations: operates the Mettiki, Tunnel Ridge, and MC mining complexes.
- Oil & Gas Royalties: holds various oil, gas, and related equity assets.
- Illinois Basin Coal Operations: responsible for operations in the Gibson County, Warrior Coal, River View, and LLC mining complexes.
- Coal Royalties: operates its leased and coal mineral reserves and other company-owned resources.
The company offers its investors an attractive 11% dividend yield based on a .
In 2023, Alliance Resource Partners reported record revenue, from FY’22’s $2.4 billion. Its net income also grew 7.5% year over year. The company’s Oil & Gas Royalty business also reported record BOE (barrel of oil equivalent) volumes.
said the results relied “upon the strength of our well-contracted coal order book and the resilience of the entire ARLP team who persevered through volatile market challenges and difficult mining conditions.”
The company’s current ratio stands at 2.08, while its . With high dividends, great financial performance, and a strong buy rating from analysts, ARLP is one of the market’s most attractive and .
DHT Holdings (DHT)
An independent crude oil tanker company specializing in the VLCC (very large crude carriers) segment, DHT Holdings (NYSE:DHT) operates its fleet of tanks through its integrated management companies located in various countries globally.
The company has 24 operating vessels on the spot market or in time charters. DHT Holdings has also announced the , designed for improved fuel efficiency and reduced emissions and targeted for delivery around 2026.
DHT Holdings reported , a marked improvement from FY’22’s $450.4 million. Meanwhile, net income improved significantly from 37 cents to 99 cents per basic share YOY.
The company’s current ratio is 3.30, while its . Given these excellent metrics and an impressive , DHT stock has earned and a spot among the best income stocks investors overlook.
Vinci Partners Investments (VINP)
Vinci Partners Investments Ltd (NASDAQ:VINP) is a Brazilian investment management company specializing in asset and wealth management. The company offers various products for investments in equities, credit, real estate, etc.
Vinci Partners recently acquired , which aims to expand the company’s agribusiness footprint. Additionally, the company announced its , an investment management firm. This partnership aims to provide customers with an alternative way of accessing alternative asset management services.
Vinci Partners Investments reported fee-related revenues is , with total fee-earning AUM or assets under management growing 9% over the same period. Meanwhile, adjusted distributable earnings decreased by 1%.
Even with strong momentum, the company still holds a lot of value. Its current ratio is 11.29, while its debt-to-equity ratio is relatively low at . With Wall Street’s and a , we may have another strong contender portfolio candidate.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
On the date of publication, Rick Orford did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
