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.
Leveraging the TipRanks’ Best Dividend Stocks Screener, we have identified five 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 4%.
Here are this week’s stocks:
Rio Tinto (RIO) – Rio Tinto is a global mining company focused on producing iron ore, aluminum, copper, and other minerals. The stock has a dividend yield of 6.84% and a Smart Score of “Perfect 10.” Interestingly, three out of the four Wall Street analysts covering RIO stock have rated it a Buy, with their 12-month consensus price target indicating an upside of about 20.06%.
Rithm Capital (RITM) – Rithm Capital is a real estate investment trust (REIT) that focuses on mortgage servicing, real estate securities, and lending solutions. The stock has a dividend yield of 8.5% and a Smart Score of “Perfect 10.” Interestingly, five out of the six Wall Street analysts covering RITM stock have rated it a Buy, with their 12-month consensus price target indicating an upside of about 11.68%.
Ares Capital (ARCC) – Ares Capital is a business development company (BDC) that invests in middle-market companies across various industries, focusing on debt and equity investments. The stock carries a dividend yield of 8.87% and a Smart Score of “Perfect 10.” Interestingly, seven out of the eight Wall Street analysts covering ARCC stock have rated it a Buy, with their 12-month consensus price target indicating an upside of about 7.77%.
AT&T (T) – This is a telecommunications giant that provides wireless, broadband, and entertainment services across the U.S. The stock has a dividend yield of 4.14% 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 3.28%.
Chevron (CVX) – Chevron is a global energy company engaged in oil, natural gas, and renewable energy development. The stock has a dividend yield of 4.16% and a Smart Score of nine. Interestingly, 11 out of the 14 Wall Street analysts covering CVX stock have rated it a Buy, with their 12-month consensus price target indicating an upside of about 7.67%.
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
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