Recent market volatility on the back of government policies has unnerved investors to the point where we ask ourselves, should we be buying more? Or holding on to our portfolio. I myself have found myself in the latter category, holding on to my portfolio and selling absolutely nothing. Investing in such an environment is incredibly challenging. But that begs the question: if I were looking for high-yielding dividend stocks to buy, which ones would I pick?

If I screen from the 13,556 stocks paying dividends, then sort by yield, today I get: 

Highest Yielding Dividend Stocks Today

Company	Yield (ttm)
United American Healthcare	567.38%
Icon Energy Corp	416.88%
Site Centers Corp	412.92%

But, are these companies worth buying? The consensus among analysts says most likely not. Site Centers has a hold rating, and only one analyst covers Icon Energy. And, United American doesn’t even have any coverage, so it’s hard to say if any of these stocks are worth buying without digging into their business plan and financials. 

So, with that out of the way, how do we find dividend stocks worth buying and with the highest yields? We look for companies with a track record of paying and increasing their dividends (for at least 25 years) while having a consensus buy rating from Wall Street analysts. I prefer members of the Dividend Aristocrats: S&P 500 listed companies with 25+ consecutive years of increasing their dividend, and the Dividend Kings. The “Dividend Kings” don't need to be S&P 500 listed, however, they do need to have increased their dividends for 50+ years.

How I Found the 3 Highest-Yielding Dividend Stocks Worth Buying?

With Barchart’s Stock Screener, I screened for stocks on the Dividend Aristocrats & Dividend Kings lists using the following filters:

• Current Analyst Rating: >Moderate Buy -  No hold or sell ratings for this analysis.
• Number of Analysts: >8 - The more analysts, the stronger the consensus.
• Annual Dividend Yield (%): Blank - This gives me a headline to sort in the report.
• Watchlists: Dividend Aristocrats & Kings - Companies that have paid increasing dividends for at least the last 25 and 50 consecutive years, respectively.

Then, I hit “See Results,” and sorted the list by dividend yield, highest to lowest:

The results are in: Amcor Plc, Chevron Corp, and Stanley Black & Decker are the three highest-yielding dividend stocks worth buying today. 

Amcor Plc (AMCR) 

Founded in 1896, Amcor has become famous for being a leader in flexible and rigid packaging solutions that protect everything from soft drinks to medical supplies. The company serves several different industries, including biotechnology and food, in 40+ countries across 200+ sites. 

AMCR’s stock is trading at the lower end of its 52-week range of $8.37 and $11.48. The company pays a 50.5-cent annual dividend, which translates to an approximate yield of 5.6%. 

One thing to note is the company’s dividend payout ratio, which tells us how much of the company earnings go toward paying the dividend. At 70.66%, it’s a little on the high end of the spectrum but does leave some room for growth. 

Should You Buy AMCR Stock?

A consensus among eleven analysts rates AMCR stock a 4.27, or a “Moderate Buy.” The stock has a high target of $13.00, suggesting as much as 41.6% of upside exists by this time next year.

Chevron Corp (CVX) 

Chevron Corp is next on the list of the highest-yielding dividend stocks today. Among its peers, Chevron is one of the largest energy companies, producing oil and gas globally through upstream and downstream operations. 

Historically, Chevron grew exponentially from fossil fuels, however, today, the company is working toward renewable energy and carbon capture tech, which makes me feel a bit better about an “oil and gas” company. 

In terms of dividends, Chevron is a member of the Dividend Aristocrats list, having increased its dividend for 38 consecutive years. Owners of CVX stock can expect $6.68 per share, per year, in dividend income, translating to an approx. 4.9% yield.

Similar to Amcor, Chevron’s dividend payout ratio is 71%, leaving the company with room to grow the dividend. 

What the Analysts Say About Chevron Stock

Chevron stock is currently rated a “Moderate Buy” among a consensus of 22 analysts. The “High Target” price is $186, suggesting the stock could be significantly undervalued. 

Stanley Black & Decker Inc. (SWK)

Last on the list of high-yielding dividend stocks worth buying is Stanley Black & Decker. Stanley is a global leader in tools and engineering fastening systems. They produce “the right tools” for the right jobs - whether it’s for indoor, outdoor or industrial applications. Actually, I’d bet you most likely own a Stanley product at home right now or know someone who does - I know I do!

Stanley Black & Decker is both a Dividend Aristocrat AND a Dividend King, having increased its dividend for each of the past 57 consecutive years. 

SWK stockholders receive $0.82 a quarter, or $3.28 per year, which translates to an approx. 4.9% yield. 

Do Analysts Think You Should Buy This High-Yield Dividend Stock?

Analyst sentiment is also optimistic with a consensus moderate buy rating (3.63 out of 5) from 16 analysts and a high price target of $120, which implies a potential 37% upside from the stock’s current trading price.  

At $66.34, the stock is trading at the lower end of its 52-week range. That said, analyst sentiment is improving over the last quarter. A consensus among 16 analysts is a “Moderate Buy” rating and a high target price of $102, suggesting as much as 53.7% upside potential on the stock. 

Final Thoughts

If you’re relying on dividend income in retirement, growth stocks and the “next big thing” should absolutely be avoided - unless you’re prepared for the stock to drop 40% or more between portfolio checks. 

Owning quality companies with a history of increasing their dividends is a time-and-tested way to “not worry so much” about what the markets are doing while beating inflation through increased income.

On the date of publication, Rick Orford 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.