Top 3 Dividend Stocks with Great Growth Potential

The S&P 500 has almost recovered its losses this year, and we are close to breaking into positive territory. The Fed paused on raising interest rates, and reduced the number of rate hikes it expects to employ this year. This is pretty good news for the market, as the lower rates should be around for at least a few more months. At the same time, this news shows how the Fed is cautious of the volatile macroeconomy. There are reasons to be optimistic, but just as many (if not more) reasons to remain cautious.

Below, we outline three Buy-ranked stocks with dividend yields north of 3%. These companies also have considerable growth potential, with an attractive combination of profitability, sales growth, ROE, and other fundamental metrics: Ormat Technologies, Inc. (ORA), Omega Healthcare Investors (OHI) and American Eagle Outfitters(AEO). Keep your head up, but tread carefully and protect yourself from potential cracks in the market which can adversely affect your investments. The sentiment has shifted for the better in recent weeks, but there’s a good chance that this optimism won’t carry through consistently for the rest of the year.

Source: Zack's

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