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Optimistic rhetoric from the Federal Reserve has calmed markets amid ongoing tariff concerns and it may be time to start eyeing stocks that could be in store for an extended rebound.

Notably, several stocks among the Zacks Rank #1 (Strong Buy) list are very suitable candidates in this regard and offer the comfort of a generous dividend to further support investors.  

Cal-Maine Foods is Capitalizing on Historically High Egg Prices
 

As the largest producer of fresh-shell eggs in the United States, Cal-Maine Foods (CALM - Free Report)  stock has pulled back 20% from its 52-week high of $116 a share in January. The pullback appears to be a buying opportunity as outbreaks of the bird flu and seasonal demand have led to a continued surge in egg prices with the Easter holiday approaching in April.  

Furthermore, while Fed Chair Jerome Powell has quieted fears of a resurgence in inflationary risk, Cal-Maine would more than likely benefit if this were to occur. Trading at just 5.9X forward earnings, Cal-Maine’s EPS is now projected to soar over 170% this year to $15.59. This comes as egg prices have remained near historical highs with the current price per dozen at almost $6. Of course, Cal-Maine’s bottom line is expected to contract as egg prices normalize but the company is known to reward shareholders with a generous dividend which currently stands at 6.39%.

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A Leading REIT with an 8% Dividend  
 

REITs usually attract the attention of income investors and Alexander’s (ALX - Free Report)  is one to consider as a developer of residential properties in New York City. Trading at $212, ALX has rebounded nicely from its 52-week lows of $184 in January but is still 19% from its one-year peak of over $250 a share last September.

Echoing more upside for Alexander’s stock is that fiscal 2025 and FY26 EPS estimates have risen over 15% and 26% in the last 60 days respectively. Plus, ALX trades at a reasonable 18.6X forward earnings multiple and offers an eye-catching 8.41% annual dividend.

Image Source: Zacks Investment Research

A Midwest Bank Leader
 

With over 110 banking locations in Indiana, Ohio, and Michigan, First Merchants (FRME - Free Report)  stock is starting to stand out as an operator of a full-service charter bank with private wealth services. Expanding throughout the Midwest, First Merchants' steady growth is appealing as annual sales are expected to rise over 4% in FY25 and FY26 with projections edging toward $700 million.

More intriguing is the company’s operating efficiency, with annual earnings projected to increase 11% in FY25 and forecasted to spike another 8% next year to $4.16 per share. The cherry on top is that FRME offers a 3.39% annual dividend while trading at 10.7X forward earnings, with EPS estimates trending higher over the last two months and nicely up in the last 30 days.

Image Source: Zacks Investment Research

Bottom Line
 

Magnifying the trend of positive earnings estimate revisions for these highly ranked stocks is their attractive dividends, which are reassuring as investors hope the broader market will continue to stabilize and rebound.

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