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 two stocks with Strong Buy ratings from analysts that offer dividend yields above 5%. 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.
1. Global Ship Lease (GSL) – Global Ship Lease is a container ship leasing company that charters vessels to major global shipping lines. The stock carries a dividend yield of 6.16% and a Smart Score of Eight. In the last three months, all three Wall Street analysts covering GSL stock have rated it a Buy, with their 12-month consensus price target indicating an upside of about 18.81%.
The company is expected to report its Q1 2026 earnings in mid-May. Wall Street analysts expect Global Ship Lease to report earnings per share of $2.37 on revenue of approximately $182.87 million. Ahead of the print, Fearnley analyst Fredrik Dybwad upgraded GSL to Buy from Hold and maintained a $51 price target.
2. 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 Eight. 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 64%.
The company reported its first-quarter 2026 results on April 30, with revenue rising 3.7% to $1.2 billion. Growth was mainly driven by its fintech unit, Brigit, where revenue jumped over 40% as more users signed up for its financial tools. Looking ahead, management kept its full-year 2026 outlook unchanged. The company expects revenue of $4.7 billion to $4.95 billion, with earnings per share between $4.00 and $4.35.