There is so much going on in the markets that it is hard to know where to start and what to look for. On the red side of the ledger it is clear that the headwind is increasing. House Democrats still oppose the $ 1.8 trillion coronavirus bailout package proposed by the White House, saying President Trump’s proposal does not go far enough. The House Dems power their own $ 2.2 trillion. At the same time, both Eli Lilly and Johnson & Johnson suspended their coronavirus vaccination programs after the latter company reported an “adverse event” in early studies. This has worried more than just investors, as most hopes for a return to normal depend on developing a working vaccine against the novel virus. And the winning season begins. For the next several weeks we will see the third quarter results for every public company, and investors will be keen to watch those results. The consensus is that earnings will drop between 20% and 30% year over year. With that in mind, we used the TipRanks database to pull up three dividend stocks that were yielding 6% or more. However, that’s not all they offer. Each of these stocks has a strong buy rating and significant upside potential. Philip Morris (PM) First up is the tobacco company Philip Morris. The “Sin Stocks”, manufacturers of tobacco and alcohol products, have long been known for their good dividends. PM has taken a different path over the past year with a move towards smokeless tobacco products that are marketed as cleaner and less dangerous to the health of users. A sign of this is the company’s partnership with Altria to launch and commercialize iQOS, a heated smokeless tobacco product that allows users to get nicotine without the pollutants from tobacco smoke. PM put over $ 6 billion into the product. Given the regulatory challenges and PR related to vaping products, PM believes that smokeless heated tobacco will be the stronger alternative with greater growth potential. Regardless, for the moment, PM’s core product remains Marlboro cigarettes. The cult brand remains a bestseller, despite the long-term trend that public opinion is turning against cigarettes. As for dividends, PM was and is a true champion. The company has increased its dividend payout every year since 2008 and paid out reliably every quarter. Even Corona couldn’t derail that. PM kept its quarterly payment of $ 1.17 through 2020, and the most recent dividend, paid earlier this month, rose to $ 1.20 per common share. This equates to an annual return of $ 4.80 and a return of 6%. Michael Lavery, who covers PM for Piper Sandler, likes the move to smoke-free products, writing, “We remain optimistic about PM’s strong long-term prospects and believe in the recent momentum of iQOS The COVID-19 pandemic has been impressive . iQOS saw strong user growth and improved profitability. Reopening stores could further encourage adoption among new users. “Lavery rates PM stocks as overweight (ie buy) and their price target of $ 98 implies an uptrend of 24% for a year. (To see Lavery’s track record, click here.) Overall, the consensus rating for strong buy on PM is based on 9 ratings, with 8 to 1 breaking on buy versus hold. The shares are priced at $ 79.10 and their average price target of $ 93.56 suggests upside potential of 18%. (See PM stock analysis on TipRanks) Bank of N.T. Butterfield & Son (NTB) Butterfield is a Bermuda-based small-cap bank offering a full range of services to clients on the island – and in the Caymans, Bahamas, and Channel Islands as well as Singapore, Switzerland. and Great Britain. Butterfield’s services include personal and business loans, savings accounts and credit cards, mortgages, insurance and asset management. Butterfield saw sales and earnings declines in the first half of this year, in line with the general pattern of banking services around the world – the global COVID-19 pandemic dampened business and bankers felt the blow. Earnings in the last quarter of 2019 were 87 cents per share and dropped 20 to 67 cents in the second quarter. While this was a significant decrease, it was still 21% better than expected. The bottom line is that sales have dropped to $ 121 million. NTB reports third-quarter earnings later this month and forecasts earnings per share of 63 cents. In addition to the above-average earnings forecast, Butterfield paid a strong dividend this year. Through the second quarter, the dividend paid was up to 44 cents per common share, which equates to a sturdy 7% return. If you look at the current low interest regime – the US Federal Reserve has set rates close to zero and government bonds are yielding less than 1% – NTB’s payment looks even better. Raymond James Donald Worthington, 4-star analyst at Raymond James, writes of Butterfield, “… Robust capital levels [provide] in our opinion more than sufficient loss absorbing capacity for any credit problems. The stability of fee income has proven valuable given the impact of falling interest rates on NII, where the bank has been actively managing spending to support profits. We continue to believe that given the low risk credit portfolio, robust capital levels and our forecast of a dividend payout below 100%, the dividend is safe for now, even amid our stressed outlook. “These comments support the analyst’s outperformance (ie buy). Rating and its target price of 29 USD point to an upward movement of 15% for the coming year. (To see Worthington’s track record, click here.) In total, NTB has 4 recent ratings including 3 buys and a single hold, making analysts’ consensus rating a strong buy. This stock has an average price target of $ 29, which is on par with Worthington’s. (See NTB stock analysis on TipRanks) Enviva (EVA) Last on our list is an energy company, Enviva. This company has an interesting niche in an essential sector and produces “green” energy. In particular, Enviva is a manufacturer of processed biomass fuel, a wood pellet derivative that is sold to power plants. The fuel burns cleaner than coal – an important issue in today’s political climate – and is made from recycled waste (wood chips and sawdust) from the wood industry. The company’s manufacturing facilities are located in the American Southeast, with major customers in the UK and mainland Europe. The economic stagnation during the corona pandemic reduced demand for electricity, and Enviva’s sales declined in the first half of 20, mainly due to that reduced demand. Earnings remained positive, however, and the EPS outlook for the third quarter is forecasting an increase to 45 cents – in line with strong earnings in the second half of 2019. Neviva has consistently committed to paying its dividend and in the final quarter – the August Payment – The company increased the payment from 68 cents per common share to 77 cents. This brought the annualized value of the dividend to $ 3.08 per share and makes the return 7.3%. What’s even better is that Enviva has been paying dividends on a regular basis for the past 5 years. Responsible for this Raymond James stock is analyst Pavel Molchanov, who rates EVA as an outperform (i.e. buy) and sets a price target of $ 44. The stock’s recent appreciation has brought the stock closer to that goal. Molchanov writes: “Enviva is benefiting from an increasingly broad customer base and there is a high growth in visibility through dropdowns. Against the backdrop of massive coal shutdowns in the energy sector – including (as of September 2020) 34 countries and 33 sub-national jurisdictions with mandatory coal exits … ”(To see Molchanov’s track record, click here.) Enviva’s strong buy consensus rating is based at 4 Buy and 1 Hold. The share price, which has risen in the last few sessions, is USD 42.60 and, as previously mentioned, has reached the average price target of USD 44.80. (See EVA stock analysis at TipRanks.) To find great ideas for trading dividend stocks at attractive valuations, visit TipRanks ‘Best Stocks to Buy, a newly launched tool that brings together all of TipRanks’ stock insights. Disclaimer: The opinions expressed in this article are solely those of the analysts presented. The content is intended to be used for informational purposes only. It is very important that you do your own analysis before making any investment.