3 Dividend Stocks With High Yields and a Triple-Digit Upside Potential

"You don't have to settle for a moderate yield with moderate upside if you like dividend stocks. Verizon (NYSE:VZ), Hormel Foods (NYSE:HRL), and HP Inc (NYSE:HPQ) offer both a high yield and upside potential in the coming years and can greatly outperform the broader market. You can still buy stocks with a lower yield, but it's worth keeping in mind that even a 4% yield is outclassed by Treasuries that yield over 4.8% while being risk-free."

"Verizon is one of the most mispriced cash cows on the stock market today. It is one of the largest telecommunications businesses and has more than proved itself in the past few years. Telecom companies are usually debt-laden and were considered more on the discretionary side. However, Verizon managed to generate positive cash flow despite exceptional interest rates, increase its dividends, and keep its customer base steady."

"VZ stock carries a 6.82% dividend yield today and trades at less than 9 times earnings. Sure, it has over $170 billion of total debt on its balance sheet, but pre-tax income of $26.2 billion over the past year is more than enough to service that debt and pay growing dividends. Once interest rates look less scary, I expect VZ stock to make a full recovery and beyond, likely reaching $80."

Several dividend stocks offer both high yields and meaningful upside potential that could outperform the broader market. Treasury yields above 4.8% make low-dividend stocks less attractive on a risk-adjusted basis. Many cash-rich companies are navigating temporary headwinds but retain capacity to rebound, delivering dividend income plus capital appreciation. Verizon is described as a mispriced cash cow that produced positive cash flow despite high interest rates, raised dividends, and kept customers tied to essential internet services. Verizon yields 6.82%, trades under 9x earnings, carries over $170 billion of debt, and reported $26.2 billion in pre-tax income, suggesting ability to service debt and sustain payouts.

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