by Ian Cooper

Overlooked dividend stocks are hidden gems.

They may not be widely discussed as other, more popular dividend stocks, but they offer compelling yields and a good deal of upside potential.

Plus, it never hurts to hold dividend stocks – especially when markets get uncontrollably volatile. Not only can they help protect your portfolio, but they can help generate healthy passive income along the way.

That being said, here are three overlooked dividend stocks you may want to consider.

American States Water

With a yield of 2.32%, Dividend King, American States Water (NYSE: AWR) provides water and electric services with a strong history of consistent dividend increases. In fact, it’s paid out a dividend every year since 19321.

Earlier this month, AWR approved a quarterly dividend of $0.4655 per share – its 356th consecutive dividend – which is payable on June 3 to shareholders of record as of May 19. Even better, it just blew earnings out of the water.

In its first quarter, EPS of 70 cents beat by three cents. Revenue of $148.01 million, up 9.4% year over year, beat by $2.16 million. Plus, analysts at Wells Fargo just upgraded AWR to an equal weight rating with a price target of $84.

Last trading at $80.24, we’d like to see AWR retest $86 initially.

Toll Brothers 

Oversold and starting to pivot higher, Toll Brothers (NYSE: TOL) also just raised its dividend by 9% to 25 cents per share, which was paid on April 25 to shareholders of record as of April 11. It’s also the fifth consecutive year the company raised its dividend.

The luxury real estate sector is also still in high demand.

Even with higher interest rates, affluent buyers are still buying. “People with the means to buy high-end homes are jumping in now because they feel confident prices will continue to rise,” said David Palmer, a Redfin Premier agent, as quoted by Kiplinger.com. “They’re ready to buy with more optimism and less apprehension. It’s a similar sentiment on the selling side.”

After finding strong support at $86.44, TOL now trades at $103.50. From here, we’d like to see TOL retest $115 initially.

Global X Super Dividend U.S. ETF 

We can also look at dependable dividend-paying exchange-traded funds (ETFs).

With an expense ratio of 0.56% and a yield of 1.77%, the Global X Super Dividend U.S. ETF (NYSEARCA: DIV) invests in some of the highest dividend-yielding stocks in the U.S.

According to Amplify ETFs, “DIVO is designed to offer monthly income while providing high risk-adjusted returns that corresponds generally to the CWP Enhanced Dividend Income Portfolio (EDIP). DIVO seeks to provide gross annual income of approximately 2-3% from dividend income and 2-4% from option premiums.”

It also holds 24 stocks, including Visa, CME Group, Caterpillar, JPMorgan, Honeywell, Microsoft, Goldman Sachs, American Express, Home Depot and IBM to name just a few. Last trading at $17.47, we’d like to see DIV initially retest $18.80.