This article results from a screening using Marketbeat’s stock screening tool. The point is to show that all it takes is a little due diligence to uncover superior opportunities in the market. The criteria for the screening are simple. The stocks must carry a Moderate Buy Rating or better, yield at least 4%, and expect at least 25% upside at the analysts' consensus estimate. The results are surprising in their quality and provide sufficient choice for investors to find something they like. 

Chevron tops the list of high-yield stocks with upside potential 

Diversified and integrated oil giant Chevron (NYSE: CVX) tops the list of high-yield buy-rated stocks. This company pays roughly 4.25% with shares trading near a multi-year floor and is the highest rated with a Marketbeat.com score of 2.82. The 17 analysts' ratings peg the stock at Moderate Buy, verging on Buy with a price target 32% above the current action. There has been some downward pressure in the consensus to help drive the market to its current lows, but it has outrun sentiment. The analyst's lowest price target is also above the current action and implies about 20% upside for the market. 

Chevron investors face some risks in Kazakhstan and its Hess deal. The Kazakhstan project is taking longer and costing more than expected, while the Hess deal is under regulatory scrutiny. If denied, it would impact the outlook for cash and FCF but not significantly harm the dividend outlook. Regarding oil prices, demand is expected to remain solid in 2024 despite fears, and the oil market could rebound sharply due to OPEC production curbs and sustain robust cash flow for the company.

AT&T a close second with a yield of 6.75%

AT&T (NYSE: T) is a close second with a rating score of 2.58, but its yield is far more attractive. The 6.75% is reliably safe and compounded by an expectation for a 27% share price increase. The consensus estimate edged lower in Q4 but remains up compared to 2022, and even the low price target implies a small upside for the market and value for investors.  Coincidentally, analysts at JPMorgan Chase have upped their estimates for telecom business, given the solid start to Q4. They forecast mixed results across the group, but subscriber additions favor normalization and a return to growth. 

The Toronto-Dominion Bank is a good buy

The Toronto-Dominion Bank (NYSE: TD) is in 3rd spot with a buy rating of 2.6 and a yield of 4.77%. This Moderate Buy rated stock trades at only 10X its earnings outlook and has a 47% upside potential at the consensus target. The low target also offers a robust upside, suggesting a deep value at this price point. The dividend is variable quarterly, which may cause some concern, but the annual results are consecutive years of annual growth with ample room in the numbers to sustain growth annually. While risks are present in the economy, this bank is expected to grow revenue and earnings in 2024. 

Canadian Natural Resources Limited: high-quality energy at a low cost

Canadian Natural Resources Limited (NYSE: CNQ) is a top-tier energy producer trading at a deep value. This Moderate Buy-rated stock has a buy rating of 2.57 and trades 35% below the analysts' lowest price targets, about 45% below the consensus midpoint. The consensus is trending higher, so a sharp upward movement in the price action is possible. 

The dividend yields about 4.5%, with shares near $62.50, and there is an expectation for distribution growth. The payout ratio runs below 50%, the balance sheet is in great shape, there is a history of annual increases, and earnings growth is in the forecast. Shares of this stock are trading near resistance, forming a Bullish Triangle, and may break to a new high soon.