3 “Strong Buy” Dividend Stocks with Over 7% Dividend Yield and Double-Digit Upside, According to Analysts

As the first quarter of 2026 comes to a close, market sentiment is improving. After recent volatility, investor confidence has picked up following U.S. President Donald Trump’s announcement of a two-week ceasefire with Iran, tied to the reopening of the Strait of Hormuz. Even so, many investors are still leaning toward high-yield dividend-paying stocks for steady income.

To assess these returns, investors can use TipRanks’ Dividend Calculator, which helps estimate future income based on investment size.

Leveraging TipRanks’ Best Dividend Stocks Screener, we identified three stocks that offer dividend yields above 7%. Each stock also carries a Strong Buy rating from analysts and offers potential double-digit upside from current levels. At the same time, they carry an Outperform Smart Score (8, 9, or 10) on TipRanks. The Smart Score reviews eight factors to measure a stock’s potential to beat 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 company recently reported a strong finish to 2025, supported by a massive liquidity position of over $6 billion. This includes $638 million in cash on hand, giving the company a significant safety net to continue its lending operations.  
• The stock carries a dividend yield of 9.64% and boasts a Smart Score of nine, suggesting it is highly likely to outperform the market. Interestingly, five out of the six Wall Street analysts covering ARCC stock have rated it a Buy, with their 12-month consensus price target indicating an upside of about 16%.

2. Upbound Group (UPBD) – Upbound Group is a rent-to-own and consumer finance company offering flexible payment solutions for household goods.

• The company delivered a strong performance in 2025, with full-year revenue reaching $4.7 billion, an 8.7% increase year-over-year. As of December 31, 2025, the company maintained a solid financial foundation with $120.5 million in cash on hand and total liquidity of about $358 million.
• The stock carries a dividend yield of 8.88% and a Smart Score of Nine. In the last three months, all four Wall Street analysts covering UPBD stock have rated it a Buy, with their 12-month consensus price target indicating an upside of about 27%. 

3. Energy Transfer (ET) – Energy Transfer is a midstream energy company that transports and stores oil and natural gas.

• The company reported a strong 2025, with annual revenue climbing to $85.5 billion and current assets of $18.2 billion.
• 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 17.12%.