5 High Yield Stocks With Improving Analyst Sentiment

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 |  Includes: ABB, AGNC, CCL, FSC, NVS
by: Kapitall

The following is a list of high yield dividend stocks that have seen improving analyst sentiment over the last three months. Analyst ratings are presented on a linear scale, where ratings close to 1 indicate "Strong Buy" while ratings close to 5 indicate "Strong Sell". All of the stocks in this list have seen their ratings move closer towards 1 over the last 3 months, i.e. improving analyst sentiment.

Although analysts still remain cautious on most of these names, the improvement in ratings suggests that they think at least some of the bad news is being priced in. Do you agree?

A word of caution: Some of these names are extremely risky. American Capital Agency Corp., as an example, is using a massive amount of leverage. Considering the risks inherent in this list, the improvement in analyst sentiment is all the more interesting.

Dividend yield and short float data sourced from Finviz.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the stocks mentioned below. Analyst ratings sourced from Zacks Investment Research. Note: The numbers on top of items represent the forward P/E ratio, if available.



The list has been sorted by the change in analyst ratings over the last three months. Note: The analyst ratings here have been sourced from Reuters. They differ from the ratings collected by Zacks in the chart above. We thought that might provide a more diverse perspective)

1. American Capital Agency Corp. (NASDAQ:AGNC):
Residential, REIT Industry. Market cap of $1.85B. Dividend yield at 19.62%. Analyst rating has changed from 2.58 to 2.23 over the last three months. Short float at 5.41%, which implies a short ratio of 1.39 days. The stock has gained 32.99% over the last year.

2. Fifth Street Finance Corp. (NASDAQ:FSC): Credit Services Industry. Market cap of $684.06M. Dividend yield at 10.2%. Analyst rating has changed from 2.1 to 1.82 over the last three months. Short float at 6.74%, which implies a short ratio of 8.8 days. The stock has gained 24.04% over the last year.

3. Novartis AG (NYSE:NVS):
Drug Manufacturers Industry. Market cap of $132.34B. Dividend yield at 3.37%. Analyst rating has changed from 1.67 to 1.43 over the last three months. Short float at 0.84%, which implies a short ratio of 4.06 days. The stock has gained 10.26% over the last year.

4. Carnival Corporation (NYSE:CCL): General Entertainment Industry. Market cap of $36.51B. Dividend yield at 2.16%. Analyst rating has changed from 2.05 to 1.81 over the last three months. Short float at 1.24%, which implies a short ratio of 1.93 days. The stock has gained 38.51% over the last year.

5. ABB Ltd. (NYSE:ABB):
Industrial Electrical Equipment Industry. Market cap of $54.36B. Dividend yield at 2.03%. Analyst rating has changed from 1.86 to 1.5 over the last three months. Short float at 0.16%, which implies a short ratio of 1.55 days. The stock has gained 31.93% over the last year.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.