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.

At the same time, the market is littered with cash-rich companies that are going through a tough period. I argue these dividend stocks are bound to inevitably bounce back once the storm passes. You’ll be able to snag the dividend payouts plus the massive upside once that happens.

Let’s take a look.

Verizon (VZ)

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.

In fact, customers have shown that their internet subscription is actually essential to them. They’re unlikely to go offline no matter how tough the economic situation is, and that makes Verizon a solid safe haven to buy into for a high and dependable yield.

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.

Hormel Foods (HRL)

Hormel Foods has taken a beating over the past five years and is down 48.2% over that period. This company makes a variety of branded food products. While inflation initially helped it, the momentum has gone downhill since 2021.

Regardless, I now believe it is too cheap to ignore. HRL stock now comes with a dividend yield of over 5%. Better yet, dividends have been raised for 59 years consecutively. The payout ratio still leaves room for more modest increases.

I expect this cash cow business to do a lot better. EPS is expected to continue growing above a 6% clip in both FY 2026 and FY 2027, along with revenue growth above 2%. You may argue that the 16 times forward earnings premium is thus fair value for the stock, but I’d disagree. Such a low valuation would only be fair if HRL stock came with a lower yield and a more fickle cash flow.

I see the forward PE ratio climbing above 25x in the coming years as interest rates drop, allowing the yield to be appreciated more by the Street.

HP Inc (HPQ)

HP Inc. makes personal computers, printers, laptops, etc. It is not to be confused with HPE, which makes servers and storage. HPQ stock is down over 34% in the past year, and I believe it’s worth buying into the weakness now.

The company has solid, stable cash flow, with computer and printing businesses still being very lucrative and reliable. Component prices are explosive, but this isn’t a one-sided affair that many doom-and-gloom analysts expect will kill HP Inc. Instead, it could turn HPQ much hotter. Customers are willing to cover the cost of rising components. Plus, the company has strong links to enterprise clients who keep orders steady year after year.

As a result, EPS is expected to stay flat in FY 2026 and grow at a 4% clip in FY 2027, along with a modest sales increase below a 2% growth rate. These aren’t sexy figures, but they show a lot of resilience that most other companies do not have in the electronics sector.

You get a forward dividend yield of 5.59%. The real kicker is that the payout ratio is less than 37%. Management has been increasing the dividend at over 10% annually on average over the past 5 months. The business itself doesn’t need to grow at a flashy pace before Wall Street starts paying more due to how much income it can churn out.

HPQ trades at less than 7 times forward earnings.