When markets are shaken, headlines scream, and volatility hits Wall Street. Income investors stay calm – and they get paid for it. That’s the silent power of dividend-paying stocks. They don’t just survive the meltdown – they provide you with steady income through it.
While some chase hype and momentum, income investors quietly amass yields quarter after quarter, making the most out of every opportunity.
And when analysts on Wall Street say these high-yield companies are a “Strong Buy”, that doesn’t just mean safety, but potential growth waiting to happen.
Today, let’s take a look at the highest-yielding stocks that are rated “Strong Buys.”
I used Barchart’s Stock Screener to find the highest-yielding companies on my watchlist.
Number of Analysts: 16 or higher, as more analyst scores make for a stronger consensus.
Current Analyst Rating: 4.5 – 5. I’m limiting the list to “Strong Buy” stocks that Wall Street expects to perform well within the next 12 months.
Annual Dividend Yield (FWD), %: Left blank to be sorted from highest to lowest.
The results give us 154 companies. I’ll cover the top five, highest-yielding dividend stocks that are “strong buy” rated.
With that, let’s begin with the highest-yielding dividend stock:
Energy Transfer LP is a midstream company founded in 1996 and now headquartered in Dallas, Texas. Midstream companies are mainly involved in the transportation, storage, and processing of raw energy materials like oil and gas.
Energy Transfer recently announced a binding open season for its Desert Southwest Expansion Project, which is going to expand 1.5 Bcf/d of Permian gas capacity by 2029. This will connect crucial supply points in Texas and New Mexico and cater to growing demands in the Desert Southwest.
In its most recent financials, the company reported sales are down 7% year-over-year to $19.2 billion, while net income also decreased about 10% to $1.2 billion, due to lower raw material prices. But this is something that Energy Transfer can bounce back from, given its diversified asset base and long-term contracts.
Energy Transfer pays a forward annual dividend of $1.32, which translates to an approx. 8% yield. At the same time, a consensus among 16 analysts rates the stock a “Strong Buy”. The sentiment has been consistent over the past three months, highlighting the quality of Energy Transfer’s business.
The second stock on this list is Hannon Armstrong Sustainable Infrastructure Capital, an investor in sustainable infrastructure assets that advance in the energy transition. The company was founded in 1981 and is now headquartered in Annapolis, Maryland, United States.
Earlier this month, HASI announced a strategic partnership to expand its investment in clean energy and decarbonization projects. The collaboration will accelerate the deployment of low-carbon solutions in the transportation and infrastructure sectors.
The company pays a forward annual dividend of $1.68, reflecting about a 6% yield. With that, a consensus among 17 analysts rates the stock a “Strong Buy”, a sentiment that has strengthened over the past three months, which could make the stock a more interesting investment.
The third dividend company on my list is Vici Properties Inc., a real estate investment trust (REIT) that focuses on the gaming, hospitality, entertainment, and destination industries. It was founded in 2017 as a spin-off from Caesars Entertainment Corporation. Now, it owns over 54 casinos and 38 bowling alleys.
Just last week, the company announced its agreements related to MGM Northfield Park, following its sale of the property’s operations to Clairvest Group Inc. With this, Vici enters a new 25-year lease with Clairvest, generating an initial annual rent of $53 million.
Vici Properties’ most recent financials reported sales rose around 5% from the same quarter last year to $1 billion, while net income also increased approximately 17% year over year to $865 million.
Vici Properties pays a forward annual dividend of $1.80, which translates to around a 5.7% yield. Even with a lower yield than the first two companies, a consensus among 23 analysts rates the stock a “Strong Buy”, with a score of 4.61/5, highlighting strong expectations for the company to perform.
Permian Resources Corp is an independent oil and natural gas company that concentrates on these properties, primarily the Delaware Basin. The company was formed in 2022 after a merger of Centennial Resource Development and Colgate Energy.
Permian Resources recently closed on its acquisition of a leasehold and royalty interests in Eddy and Lea Counties, New Mexico. This deal will strengthen its position in the core of the Delaware Basin.
Moving on to its most recent financials, Permian Resources reported sales were down around 4% from the same quarter last year to $1.2 billion. It also incurred a net loss of approximately 12% year-over-year to $207.1 million.
Permian Resources pays a forward annual dividend of $0.60, translating to about a 5% yield. A consensus of 23 analysts rated the stock a “Strong Buy”, a rating that has been consistent over the past three months. And notably, 19 of those 23 analysts rate the stock a strong buy.
Last but definitely not least is Netstreit Corp, an internally managed REIT that specializes in acquiring single-tenant net lease retail properties. It was just founded in 2019 and is headquartered in Dallas, Texas.
Just last month, NETSTREIT Corp secured $450 million in new financing and amended its credit facilities. The deal adds two senior unsecured term loans that amount to $450 million, with $300 million funded at closing and the rest available through 2026.
Since we’re discussing numbers, the company’s most recent financials reported sales rose 22% from the same quarter last year to $48.3 million, while its net income also jumped around 243% year-over-year to $3.3 million, recovering from a significant loss.
NTST stock trades at around $19, and the company pays a forward annual dividend of $0.86, translating to a yield of around 4.5%. Now, this may be the lowest-yielding stock on this list, but it is still higher than the average. Meanwhile, a consensus among 17 analysts rates the stock a “Strong Buy”, a rating that has been strengthening over the past three months.
These five dividend-paying companies offer solid yields and strong growth potential. But while dividend yield is an attractive metric for investing, it is also essential to monitor a company’s stability, cash flow strength, and other factors that could disrupt payouts.
On the date of publication, Rick Orford did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com
