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. To assess these returns, investors can use TipRanks’ Dividend Calculator, which helps estimate future income based on investment size.
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Leveraging TipRanks’ Best Dividend Stocks Screener, we have identified three stocks with Strong Buy ratings from analysts. 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. Additionally, these stocks have a dividend yield of over 5%.
Here are this week’s stocks:
Ares Capital (ARCC) – Ares Capital is a business development company that provides financing to middle-market firms through debt and equity investments. The stock carries a dividend yield of 5.03% and a Smart Score of Eight. Interestingly, 10 out of the 12 Wall Street analysts covering ARCC stock have rated it a Buy, with their 12-month consensus price target indicating an upside of about 3.12%. ARCC stock is up 7% year-to-date.
AT&T (T) – AT&T is a U.S. telecom giant offering wireless, broadband, and pay-TV services. The stock carries a dividend yield of 5.49% and a Smart Score of “Perfect 10.” Interestingly, 16 out of the 20 Wall Street analysts covering T stock have rated it a Buy, with their 12-month consensus price target indicating an upside of about 6.76%. AT&T stock has gained 34% so far in 2025.
AES Corp. (AES) – This is a global power company that generates and distributes electricity, with a growing focus on renewable energy. The stock carries a dividend yield of 5.17% and a Smart Score of Eight. Interestingly, four out of the five Wall Street analysts covering AES stock have rated it a Buy, with their 12-month consensus price target indicating an upside of about 28.38%. AES shares are higher by 5.29% this year.
What Is TipRanks’ Smart Dividend Newsletter?
TipRanks Smart Dividends Newsletter delivers a weekly high-quality dividend stock recommendation, backed by detailed analysis and up-to-date market insights. A well-chosen dividend stock can enhance your income investment portfolio and potentially yield long-term returns.
For a complete list of dividend stocks and their payout dates, check out the TipRanks Dividend Calendar.
Use TipRanks’ Dividend Calculator to maximize your dividend income Use our Dividend Calculator to maximize your dividend income