Seeking 10% Dividend Yield? Wells Fargo Suggests 2 Dividend Stocks Worth Buying

After a strong run this year, the S&P 500 has been moving sideways over the past three weeks as investors grapple with stretched valuations, mixed economic data, and continued uncertainty around the Federal Reserve’s next steps.

Against that backdrop, it’s no surprise that in a more volatile environment like the one we’re seeing today, dividend stocks start to look appealing again. Their steady income can take the edge off market swings and offer some protection when things get bumpy.

That’s where Wells Fargo’s Donald Fandetti comes in. The 5-star analyst is recommending two dividend names with yields reaching 10% – stocks that can help investors handle the near-term ups and downs while still offering meaningful total-return potential.

We’ve used the TipRanks database to dig into the Wells Fargo dividend picks and see what else makes them so compelling. Let’s dive in.

TPG RE Finance Trust (TRTX)

The first high-yield dividend stock we’re looking at here, TPG RE Finance, is a real estate investment trust with a focus on commercial real estate. The company works in primary and in select secondary commercial markets in the US, as a balance sheet lender originating loans of $50 million or more for first mortgages.

TPG’s portfolio currently holds some $3.7 billion in assets. Of the company’s investments, 51.6% are in multifamily dwellings, 15.6% are in office space, and 12.1% are in industrial sites. The company operates primarily in the West, Southeast, and East regions of the US, with its largest footprints in the states of California, Texas, and Florida, and significant operations in the Mid-Atlantic region.

TPG RE Finance operates as the commercial real estate investment arm of the global alternative asset firm TPG. The umbrella company, which has a total of $286 billion in AUM, possesses a global platform and knowledge base that are available as resources for the REIT, which benefits from access to its parent firm.

Turning to the last quarterly report for TRTX, released last month for 3Q25, we see that the real estate investor reported a GAAP net income of $18.4 million. This came to 23 cents per common share, and beat the forecast by 3 cents per share. The company’s distributable earnings, of $19.9 million, boiled down to 25 cents per share and met analyst expectations. The distributable earnings are of interest to dividend investors, as they directly support the dividend payments.

This REIT last declared its dividend on September 12 for 24 cents per common share, with the payment made on October 24. The dividend annualizes to 96 cents per common share and gives a robust forward yield of 10.73%.

Wells Fargo sees room for that strength to continue. Turning to the firm’s view, 5-star analyst Donald Fandetti highlights TRTX’s consistency and its potential to benefit from an improving interest-rate environment.

“Another steady quarter from TRTX from an origination and credit perspective. We expect Fed cuts to be supportive to CRE credit and sentiment. We see TRTX shares trading back towards book value given stable credit and stronger origination volume,” Fandetti noted.

To this end, Fandetti rates TRTX shares as Overweight (i.e. Buy), and his $11 price target indicates room for a ~23% upside in the coming year. Together with the dividend yield, this stock’s total one-year return may run ~34%. (To watch Fandetti’s track record, click here)

Overall, TRTX carries a Moderate Buy consensus rating based on 6 analyst reviews: 3 Buys, 2 Holds, and 1 Sell. At a current price of $8.95, the stock’s $10.10 average price target points to a ~13% upside from current levels. (See TRTX stock forecast)

Blackstone Mortgage Trust (BXMT)

Like TRTX above, the next stock on our list here is also part of a larger global asset manager. Blackstone Mortgage Trust operates under the umbrella of the Blackstone asset management firm, which, at $1.2 trillion in total AUM, is one of the world’s largest asset managers. Blackstone Mortgage Trust operates independently, but its affiliation with the larger umbrella company gives it access to Blackstone’s real estate and market information and platforms.

Blackstone Mortgage Trust works in the North American, European, and Australian commercial real estate markets. The firm’s main activity is originating collateralized senior loans. The company’s portfolio includes $16.8 billion in such senior loans, extended to 137 borrowers. For the first nine months of 2025, the company received $5 billion in loan payments on its portfolio.

The company’s portfolio is composed of loans in the $50 million to $500 million-plus size range, on all commercial property types. These are mainly first mortgages, with terms of 3 to 5 years. BXMT’s geographical breakdown favors the US – 22% of its loans are in the Sunbelt region, 14% in the Northeast, and 11% in the West. The UK and mainland Europe make up 19% and 18% of the portfolio, and Australian markets account for 7%. The bulk of Blackstone Mortgage’s portfolio is in the multifamily (25%), US office (22%), and industrial (21%) segments. Hospitality properties make up 12% of the total. In all, 54% of the portfolio is composed of properties in the US. Since 2019, the company has been shifting its exposure from office spaces toward multifamily and industrial properties.

On the dividend, Blackstone Mortgage made its last declaration on September 15 for a payment of 47 cents per share, which was paid on October 15. At the annualized rate of $1.88 per share, the dividend’s forward yield comes in at 10.2%.

When we look at the financial results, we find that Blackstone Mortgage Trust reported a net income of $63.4 million in 3Q25. The company’s distributable EPS prior to charge-offs was reported as 48 cents per share and provided full coverage of the dividend payment.

Fandetti, laying out the Wells Fargo take on BXMT, sees plenty of reasons for taking an upbeat view. He writes, “We are encouraged by BXMT’s credit trends. The stock got caught up in the recent bank NDFI scare, among other factors. While Fed cuts put some downward pressure on NII, they are a positive for investor sentiment and credit. BXMT can ultimately recycle REO back into earnings… BXMT benefits from their affiliation with private equity firm Blackstone, which is the largest global owner of real estate. We believe they are relatively well positioned to work through the continued challenges in the office sector.”

These comments support the analyst’s Overweight (i.e., Buy) rating on BXMT, while his $22 price target implies that the shares will appreciate by 19% in the coming year. Add in the dividend yield, and the total one-year return on these shares can hit 29% or more.

All in all, there are 3 recent analyst reviews on file for BXMT – one Buy and two Holds – giving the stock a Moderate Buy consensus rating. The shares currently trade at $18.50, and the average target price of $20.33 implies an upside of ~10% over the one-year horizon. (See BXMT stock forecast)

To find good ideas for dividend stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a tool that unites all of TipRanks’ equity insights.

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