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I have looked for stocks with recent broker upgrades and picked out only those with relatively high dividend yields - at least 2.4%.

This list is a quick pick list only which requires further research into each of the stocks before making an investment decision. However, I believe it can give some food for thought if you are looking for stocks with a dividend yield and recent positive fundamental changes.

1) Enbridge Energy Partners, L.P. (NYSE:EEP) owns and operates crude oil and liquid petroleum transportation and storage assets, as well as natural gas gathering, treating, processing, transmission, and marketing assets in the United States.

On June 28, 2012, Enbridge Energy Partners LP was upgraded from Perform to Outperform at Oppenheimer.

The company has 6.90% trailing annual dividend yield, 6.90% forward annual dividend yield, 8.70% 5-year average annual dividend yield and pays out 97.62% of its earnings as dividends. Other market ratios: P/E Ratio: 16.91, Forward P/E Ratio: 19.99, P/S Ratio: 1.02, P/B Ratio: 2.29, PEG Ratio: 3.14.

The median target price projected by analysts is $34.00.

2) Cincinnati Financial Corporation (NASDAQ:CINF) engages in the property casualty insurance business in the United States.

On June 28, 2012, Cincinnati Financial Corp. was upgraded from Hold to Buy at Stifel Nicolaus.

The company has 4.20% trailing annual dividend yield, 4.20% forward annual dividend yield, 5.10% 5-year average annual dividend yield and pays out 137.37% of its earnings as dividends. Other market ratios: P/E Ratio: 32.77, Forward P/E Ratio: 24.42, P/S Ratio: 1.61, P/B Ratio: 1.19, PEG Ratio: 6.55.

The median target price projected by analysts is $36.00.

3) Western Gas Partners, LP (NYSE:WES) owns, operates, acquires, and develops midstream energy assets in east, west, and south Texas; the Rocky Mountains; and the Mid-Continent.

On June 27, 2012, Western Gas Partners LP was upgraded from Neutral to Buy at UBS.

The company has 3.90% trailing annual dividend yield, 4.20% forward annual dividend yield and pays out 107.86% of its earnings as dividends. Other market ratios: P/E Ratio: 26.84, Forward P/E Ratio: 21.40, P/S Ratio: 5.73, P/B Ratio: 2.81, PEG Ratio: 2.02.

The median target price projected by analysts is $51.00.

4) Spectra Energy Corp (NYSE:SE) engages in the ownership and operation of a portfolio of natural gas-related energy assets in North America.

On June 27, 2012, Spectra Energy Corp. was upgraded from Neutral to Buy at UBS.

The company has 3.80% trailing annual dividend yield, 3.90% forward annual dividend yield, 4.50% 5-year average annual dividend yield and pays out 62.19% of its earnings as dividends. Other market ratios: P/E Ratio: 16.43, Forward P/E Ratio: 14.92, P/S Ratio: 3.60, P/B Ratio: 2.26, PEG Ratio: 3.19.

The median target price projected by analysts is $33.00.

5) L-3 Communications Holdings Inc. (NYSE:LLL), through its subsidiary, L-3 Communications Corporation, provides command, control, communications, intelligence, surveillance, and reconnaissance (C3ISR) systems; aircraft modernization and maintenance; and government services in the United States and internationally.

On June 28, 2012, L-3 Communications Holdings Inc. was upgraded from Hold to Strong Buy at Stifel Nicolaus.

The company has 2.60% trailing annual dividend yield, 2.70% forward annual dividend yield, 1.80% 5-year average annual dividend yield and pays out 19.75% of its earnings as dividends. Other market ratios: P/E Ratio: 8.03, Forward P/E Ratio: 8.49, P/S Ratio: 0.48, P/B Ratio: 1.08, PEG Ratio: 2.16.

  • On June 26, 2012, L-3 Communications Holdings, Inc. announced that its board of directors has approved the distribution to its shareholders of all the outstanding shares of its subsidiary, Engility Holdings, Inc., and set the distribution ratio, record date and distribution date for the spin-off.

The median target price projected by analysts is $77.00.

6) The Boeing Company (NYSE:BA), together with its subsidiaries, engages in the design, development, manufacture, sale, and support of commercial jetliners, military aircraft, satellites, missile defense, human space flight, and launch systems and services worldwide.

On June 24, 2012, The Boeing Company was upgraded from Hold to Strong Buy at Oppenheimer.

The company has 2.40% trailing annual dividend yield, 2.40% forward annual dividend yield, 2.70% 5-year average annual dividend yield and pays out 29.45% of its earnings as dividends. Other market ratios: P/E Ratio: 12.67, Forward P/E Ratio: 12.93, P/S Ratio: 0.75, P/B Ratio: 10.90, PEG Ratio: 1.12.

The median target price projected by analysts is $87.00.

Comparison Charts

Below is the chart comparison with the stock price changes as a percentage for the selected companies and S&P 500 index for the last one year period.

(click to enlarge)EEP Chart

Data by YCharts

The chart below shows dividend yield history for the selected companies.

(click to enlarge)EEP Dividend Yield Chart

Data by YCharts

The chart below shows historical dividend payout changes as a percentage for the selected companies.

(click to enlarge)EEP Dividend Chart

Data by YCharts

Sources: Yahoo Finance, Google Finance, Finviz, YCharts.

Source: 6 Dividend Stocks With Recent Broker Upgrades