3 High-Yield Dividend Stocks With Over 20% Upside: June Edition

Core Viewpoint - Despite a strong market rally, many stocks remain undervalued, particularly high-yield dividend stocks with significant price appreciation potential [1] Group 1: Universal Corporation (UVV) - Universal Corporation is a leading global leaf tobacco supplier valued at $1.2 billion, selling leaves to major companies like Altria and British American Tobacco [2] - The company has diversified into plant-based ingredients and food products while maintaining a strong core tobacco business, which is recession-proof [3] - Universal offers a dividend yield of 6.9% and has a 54-year track record of uninterrupted dividend increases, with shares trading at a modest P/E ratio of about 10X, indicating at least a 20% undervaluation [3] Group 2: Enterprise Products Partners L.P. (EPD) - Enterprise Products Partners is a midstream energy partnership with a vast pipeline network, currently trading at a forward EV/EBITDA multiple of 9.3X, one of the lowest in its 26-year history [5] - The partnership has a generous dividend yield of 7.2% and has increased its dividend for 25 consecutive years, showcasing its commitment to shareholder value [6] - The current discounted price presents a compelling investment opportunity with an upside potential of at least 20% [5] Group 3: Atlantica Sustainable Infrastructure (AY) - Atlantica Sustainable Infrastructure is a U.K.-based renewable energy project owner with a dividend yield of about 8.1% and significant upside potential exceeding 20% [7] - The company has a diversified portfolio supported by Power Purchase Agreements (PPAs) with an average weighted life of 13 years, ensuring predictable revenue streams [8] - Valuation based on Cash Available for Distribution per Share (CAFD/share) is more accurate, with last year's CAFD at $2.03, implying a P/CAFD of 10.8x, indicating undervaluation [8]