tiprankstipranks
Trending News
More News >

TipRanks’ ‘Perfect 10’ Picks: 2 Top-Scoring Stocks with Up To 6% Dividend Yield

TipRanks’ ‘Perfect 10’ Picks: 2 Top-Scoring Stocks with Up To 6% Dividend Yield

Markets got a big boost this week after news broke that U.S. and Chinese negotiators struck a deal to roll back tariffs over the next 90 days. The move gives both sides some breathing room to work toward a broader trade agreement. Investors cheered the development, sending markets higher.

Confident Investing Starts Here:

With markets rising, the question for investors is, where to buy in? We can find a ready guide to answer that question in the TipRanks Smart Score, the AI-powered natural language algorithm that sifts the full volume of the stock market’s daily data flow – and puts that data to work for investors’ benefit.

Simply put, the Smart Score’s AI compares every stock to a set of factors that are known to predict future outperformance, and then distills those ratings down to a single-digit score on a scale of 1 to 10. The highest score, the ‘Perfect 10,’ denotes those stocks that deserve a closer look from investors.

We’ve gotten a head start on that closer look, with a deep dive into two top-scoring stocks – and as an added bonus, these stocks offer investors a dividend yield that can reach as high as 6%. This is a combination that should interest investors – a data-driven performance predictor paired with a robust dividend yield. Here are the details.

Copa Holdings (CPA)

The first stock on our list of ‘Perfect 10s’ is Copa Holdings, one of Latin America’s leading airline companies. Copa operates through its two subsidiary airlines, the Panama City-based Copa Airlines, the company’s leading carrier, and its low-cost carrier based in Colombia, Wingo Airlines.

Copa Airlines operates routes across Latin America – in the Caribbean, in South America, and into the US. The airline’s regular routes include a list of major regional destinations, with Bogota, Sao Paulo, and Miami prominently featured. The airline even flies as far north as New York City and Boston. Wingo, the regional carrier, follows routes primarily in Colombia, but extending to the Yucatan Peninsula, the Greater Antilles in the Caribbean, and south to Lima, Peru.

In Copa’s most recent set of monthly travel statistics, covering March of this year, the company reported 2,546.6 available seat miles (ASM), up 5.2% year-over-year, and 2,209.7 revenue passenger miles (RPM), for a 5.5% year-over-year increase. These are key metrics in the airline industry, measuring the direction of growth in the company’s business. In another important metric, reported in the 1Q25 financial results, Copa Airlines had an on-time performance in Q1 of 90.8%, complemented by a 99.9% flight completion factor.

Also reported in the 1Q25 report, Copa Holdings finished Q1 with 112 aircraft, all from the Boeing 737 family of airliners. These included 67 737-800 and 32 737 MAX-9 models. The company also operates several 737-700 and 737 MAX-8 models, and a single 737-800 air freighter. Copa Holdings has exercised options to acquire another six 737 MAX-8s with deliveries expected in 2028. The company has firm outstanding orders for 57 new aircraft.

On the financial side, Copa Holdings reported total operating revenues of US$899 million, up a modest 0.6% year-over-year. The company’s net profit in the quarter came to US$176.8 million, which translated to $4.28 per share. The company’s net profit per share fully covers the dividend, which was declared on May 7 for $1.61 per common share. At this rate, the dividend annualizes to $6.44 per share and gives a forward yield of 6.3%.

For Barclays analyst Pablo Monsivais, the key points here are Copa’s sound results, particularly the company’s ability to maintain growth in its passenger metrics. Monsivais wrote following the Q1 readout, “While industry participants feared a slowdown in demand, Copa was able to deliver strong results that underscore the resiliency of its business model. The company was able to expand margins and posted an EBITDA margin that is one of the highest on record for a 1Q. Going forward the risks should not be downplayed, a potential economic deceleration might slow down air travel demand, and a more competitive landscape is very likely, however time and again Copa’s business model has proven to be able to withstand challenges.”

These comments support Monsivais’ Overweight (i.e., Buy) rating on CPA stock, while his $150 price target suggests that the shares will gain 47% on the one-year horizon. Together with the dividend yield, this stock’s return has potential to hit more than 53% in the next 12 months. (To watch Monsivais’ track record, click here)

There are 5 recent analyst reviews on file for this stock, and they are all positive – giving CPA a unanimous Strong Buy consensus rating. The shares are priced at $101.90 and their average price target of $150.80 implies a one-year upside potential of 48%. (See CPA stock forecast)

Viper Energy (VNOM)

The next ‘Perfect 10’ stock on our list is Viper Energy. This limited partnership firm operates through the acquisition, ownership, and exploitation of North American oil and natural gas assets. The company buys mineral and royalty interests, targeting high-margin assets that are largely undeveloped, with a business model that demands no capital requirements but still sustains free cash flow.

Viper defines its ‘primary business objective’ as providing shareholders with an attractive return. The company achieves this by focusing on generating profits, and by maximizing its distributions to shareholders. Viper maintains its business through a strategy of accretive growth acquisitions, starting from its original set of mineral interests in the West Texas Permian Basin. Viper’s largest shareholder is the exploration and production company Diamondback, which owns approximately 58% of Viper’s total outstanding shares.

For return-minded investors, Viper has a history of paying out both regular and variable dividends each quarter. In the company’s last dividend declaration, made on May 6 for a payout on the 22nd, Viper set the regular payment at 30 cents per share and the variable at 27 cents. The 57-cent total dividend payment annualizes to $2.28 and gives a forward yield of 5.3%. Viper also has an active share repurchase program, and in Q2, as of May 2, the company has spent approximately $9 million buying back 239,374 shares of common stock.

Viper’s dividend, and its buyback activities, are supported by the company’s income and earnings, which were reported last week for 1Q25. Viper reported a quarterly total operating income of $245 million, which compares favorably to the $205 million figure from the year-ago period. At the bottom line, Viper’s non-GAAP EPS came to 54 cents, beating the forecast by 7 cents per share. The company finished Q1 with cash and other liquid assets totaling $560 million, a strong gain from the $20 million that it had at the end of 1Q24.

This energy stock has caught the attention of Evercore analyst Stephen Richardson, who notes this company’s sound capital position. In an in-depth look at Viper’s shares, Richardson lays out the case for buying the stock now, writing, “Our view has been VNOM would increasingly compete for capital vs mid-cap E&Ps where capital intensity of the underlying clearly works in VNOM’s favor while FANG-sponsorship helps address concerns around activity and continue to add organic growth support even in the event FANG elects to hold volumes flat at lower levels into 2026. At ~$12 Bn of market cap with no legacy structural or administrative hangovers limiting ownership, the time to fully evaluate this compare is now. Market focus will likely center on the state of OBO activity (~50% of VNOM is XOM operated) but we suspect the market will need to see the proof points on commodity price / activity levels to fully embrace 2026 growth potential here. Market skepticism likely fuels further share buyback here, in our view.”

Richardson rates VNOM shares as Outperform (i.e., Buy), an outlook that he backs up with a $49 price target – implying a 13.5% upside for the coming year. Adding in the dividend yield, and the one-year return here can reach almost 19%. (To watch Richardson’s track record, click here)

Viper’s stock has earned a unanimous Strong Buy consensus rating from Wall Street’s analysts, based on 12 recent reviews that are all positive. The stock is selling for $43.18 and its average price target, currently $53.64, points toward a 12-month gain of 24%. (See VNOM stock forecast)

To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a tool that unites all of TipRanks’ equity insights.

Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

Disclaimer & DisclosureReport an Issue