7%-Plus Dividend Yield and Double-Digit Upside: Analysts Suggest 2 Dividend Stocks to Buy

Dividend stocks have a reputation as the market’s ‘safe and boring’ corner. Still, there’s a reason investors keep coming back to them – reliable income never really goes out of style.

A good dividend stock doesn’t just help cushion a portfolio during rough periods. It also gives investors something many growth stocks often lack – a steady stream of cash whether markets are rallying, pulling back, or moving sideways.

Of course, not all dividend stocks are created equal. Some companies pair unusually high yields with meaningful upside potential, giving investors the opportunity to collect high income while still participating if the broader market continues moving higher.

With that in mind, we turned to the TipRanks database to screen for dividend stocks yielding at least 7% annually while also carrying favorable Wall Street outlooks and price targets pointing to double-digit upside potential. Here are a two names worth a closer look.

Townsquare Media (TSQ)

Up first is Townsquare Media, a major player in the U.S. radio market. While radio may no longer dominate the entertainment landscape the way it once did, the industry remains sizable and deeply embedded in everyday life. The U.S. continues to represent the world’s largest radio market, with industry revenue expected to reach $12.2 billion this year, according to Statista. From music stations to talk shows, news, and local programming, radio has managed to retain an audience by continuing to deliver content people still tune in for daily.

Townsquare is one of the largest radio station owners in the U.S., with a network stretching from the Northeast through the Great Lakes and Gulf Coast out to the Rocky Mountains. Overall, the company operates more than 340 local radio stations along with over 400 local websites across 74 U.S. media markets. The company’s radio station assets include news and talk in New Jersey, rock music in Grand Rapids, and country in Buffalo. Altogether, Townsquare has a radio presence in 26 states.

The company’s radio operations may be the front-facing aspect of the business, but they are hardly the only aspect of it. Townsquare also includes a digital advertising division, Townsquare Ignite, that helps local businesses connect with their customer bases through in-house digital ad creation, as well as through hundreds of local news and entertainment websites. The company also includes Townsquare Interactive, a subscription digital marketing service designed to assist small businesses in building and managing their own digital presence.

Then there’s the dividend, which is difficult to ignore. The company last declared a quarterly payout of $0.20 per share, paid on May 4. On an annualized basis, that comes out to $0.80 per share, translating into a hefty forward yield of 12.2%.

The stock, however, hit a rough patch this past March after the company’s Q4 results disappointed investors. Revenue came in at $106.5 million, essentially in line with expectations, but adjusted EPS of $0.05 missed consensus estimates by $0.06 per share. Shares eventually bottomed in early April, though they have since clawed back much of those losses ahead of the company’s upcoming Q1 2026 earnings report, scheduled for Monday, May 11.

One of the more optimistic voices on the Street is Barrington analyst Patrick Sholl, who sees both the company’s business mix and dividend as key parts of the appeal.

“Core radio and local marketing solutions are typically consistent cash generators. A core portion of the thesis is the growth in the digital businesses, which now represent the majority of company revenues. These digital operations serve both existing Townsquare radio markets as well as target markets outside of Townsquare’s core operation, generating similarly high margins and much faster growth, serving to accelerate the overall corporate growth rate. The $0.80 annual dividend provides a very attractive yield,” Sholl opined.

Along with these comments, Sholl sets an Outperform (i.e., Buy) rating on TSQ shares, with a $10 price target that indicates the stock has room to gain ~53% in the coming months. Add in the dividend yield, and the total one-year return here can reach 65%. (To watch Sholl’s track record, click here)

Overall, TSQ shares have a Moderate Buy consensus rating, based on two recent analyst reviews that both agree on the positive outlook. The shares are trading for $6.55, and the $12.50 average target price implies a robust one-year upside potential of ~91%. (See TSQ stock forecast)

CTO Realty Growth (CTO)

The next stock we’ll look at here, CTO Realty Growth, is a real estate investment trust, or REIT. This is a class of companies known for frequently providing high dividend yields and regular payments; they receive favorable treatment under tax regulations if they return a certain percentage of profits directly back to their investors – and dividends make a convenient mode of compliance.

As a REIT, CTO operates through the acquisition, ownership, and leasing out of various real estate properties. In this company’s specific case, those properties are retail sites in the commercial real estate sector. CTO currently holds a portfolio of 22 high-end retail properties, located in high-growth markets in Texas, Florida, North Carolina, Georgia, and Arizona. The company is also the external manager of the Alpine Income Property Trust, another REIT with a focus on net lease activities. CTO holds a significant ownership interest in Alpine.

CTO has been in business, in various guises, since 1910, and has been a public company since 1969. And, it is still growing – in March of this year, CTO announced that it had acquired the Palms Crossing open-air retail center in McAllen, Texas, for $81.6 million. The Palms Crossing is a 399,000-square-foot property and includes such retail names as Best Buy, Hobby Lobby, Burlington Coat Factory, and Barnes & Noble.

For the past 50 years, the company has been paying out dividends to its investors. The last dividend was announced on February 19 and paid out on March 31. At the 38-cent declared rate, the common share dividend annualizes to $1.59 and gives a forward yield of 7.5%.

The dividend is supported by CTO’s financial performance. In 1Q26, the last period reported, the company had revenues of $41.17 million. This was up 15% year-over-year, and it beat the forecast by $2.28 million. The bottom line, reported as a diluted core FFO attributable to common stockholders per common share, came to 52 cents – fully covering the dividend payment and beating the forecast by 3 cents per share.

CTO has caught the attention of Cantor analyst Jay Kornreich, who sees the stock as attractive and lays out a solid case for investors to buy in.

“The main source of incremental earnings growth of late has been on the lending side. Following the April $75M preferred Southwest retail investment, structured investments will grow above 10% of total assets. The company aims to cap the ceiling at roughly 15%, thereby keeping the focus on the core shopping center real estate portfolio… While we recognize structured investments are not the core business for CTO, it’s hard to argue with the double-digit returns and active pipeline the company has been able to generate… We continue to see the stock as attractively positioned behind its significant 9x AFFO multiple discount to the sector average, and setup for 12%+ annual AFFO growth in 2026,” Kornreich opined.

Kornreich goes on to rate CTO shares as Overweight (i.e., Buy), and gives them a $23 price target that suggests a one-year gain of ~13%. When we take the dividend yield into account, we could be looking at a possible total return for the coming year of slightly above 20%. (To watch Kornreich’s track record, click here)

Overall, all 3 of the recent analyst reviews here are positive, making the Strong Buy consensus rating on CTO unanimous. The stock is selling for $20.29, and its $23 average target price matches the Cantor view. (See CTO stock forecast)

Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.