Dividend-paying stocks are a great way to generate passive income and can be considered a safe bet in the current uncertain market situation. Furthermore, these stocks have the potential to generate notable capital gains.
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Leveraging TipRanks’ Best Dividend Stocks Screener, we have identified five stocks with Strong Buy ratings from analysts that offer dividend yields above 8%. Further, they boast an Outperform Smart Score (i.e. 8, 9, or 10) on TipRanks. The Smart Score evaluates eight factors to gauge a stock’s potential to outperform the broader market.
Here are this week’s stocks:
1. Ares Capital (ARCC) – This is a U.S.-based business development company that provides capital and financing to middle-market companies. The stock carries a dividend yield of 9.64% and a Smart Score of Nine. Interestingly, six out of the seven Wall Street analysts covering ARCC stock have rated it a Buy, with their 12-month consensus price target indicating an upside of about 9.27%.
2. JBS (JBS) – JBS is a global meat producer supplying beef, pork, and chicken to retailers and restaurants worldwide. The stock carries a dividend yield of 9.72% and a Smart Score of “Perfect 10.” In the last three months, all six Wall Street analysts covering JBS stock have rated it a Buy, with their 12-month consensus price target indicating an upside of about 16.71%.
3. Sixth Street Specialty Lending (TSLX) – TSLX is a business development company that provides loans to middle-market companies. The stock carries a dividend yield of 9.64% and a Smart Score of Nine. In the last three months, all six Wall Street analysts covering TSLX stock have rated it a Buy, with their 12-month consensus price target indicating an upside of about 16.71%.
4. Upbound Group (UPBD) – Upbound Group is a rent-to-own and consumer finance company offering flexible payment solutions for household goods. The stock carries a dividend yield of 8.88% and a Smart Score of Nine. In the last three months, all three Wall Street analysts covering UPBD stock have rated it a Buy, with their 12-month consensus price target indicating an upside of about 62%.
5. Energy Transfer (ET) – Energy Transfer is a midstream energy company that transports and stores oil and natural gas. The stock carries a dividend yield of 8.04% and a Smart Score of Eight. Interestingly, 10 out of the 12 Wall Street analysts covering ET stock have rated it a Buy, with their 12-month consensus price target indicating an upside of about 17.55%.
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