When markets shake, headlines scream and volatility hits Wall Street. Income investors keep calm and get paid for it. That’s the quiet power of dividend-paying stocks. They not only survive the crisis, but also provide you with a stable income.
While some chase enthusiasm and momentum, income investors are quietly racking up returns quarter after quarter, making the most of every opportunity.
And when Wall Street analysts say these high-performing 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 top-performing stocks rated “Strong Buys.”
I used Barchart’s Stock Screener to find the top-performing companies on my watchlist.
Number of analysts: 16 or higher, as more analyst scores generate a stronger consensus.
Current Analyst Rating: 4.5 – 5. I’m limiting the list to “strong buy” stocks that Wall Street expects to do well over the next 12 months.
Annual dividend yield (FWD), %: Leave blank to order from largest to smallest.
The results give us 154 companies. I’ll cover the five highest-yielding dividend stocks that have a “strong buy” rating.
That said, let’s start with the highest-yielding dividend stocks:
Energy Transfer LP is a midstream company founded in 1996 and now based in Dallas, Texas. Midstream companies are primarily involved in the transportation, storage and processing of energy commodities such as oil and gas.
Energy Transfer recently announced a binding open season for its Desert Southwest Expansion Project, which will expand 1.5 Bcf/d of Permian gas capacity by 2029. This will connect crucial supply points in Texas and New Mexico and address growing demands in the Desert Southwest.
In its most recent financial statements, the company reported that sales declined 7% year over year to $19.2 billion, while net income also declined about 10% to $1.2 billion, due to lower raw material prices. But this is something Energy Transfer can recover from, given its diversified asset base and long-term contracts.
Energy Transfer pays an annual forward dividend of $1.32, which translates to approx. 8% performance. At the same time, a consensus among 16 analysts rates the stock as a “Strong Buy.” 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 advancing 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 an annual forward dividend of $1.68, reflecting a yield of around 6%. With that, a consensus among 17 analysts rates the stock as a “Strong Buy”, a sentiment that has strengthened in the last 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 of Caesars Entertainment Corporation. It now has more than 54 casinos and 38 bowling alleys.
Last week, the company announced its agreements related to MGM Northfield Park, following the sale of the property’s operations to Clairvest Group Inc. With this, Vici signs a new 25-year lease with Clairvest, generating an initial annual rent of $53 million.
Vici Properties’ most recent financial statements reported that sales increased about 5% from the same quarter last year to $1 billion, while net income also increased about 17% year over year to $865 million.
Vici Properties pays an annual forward dividend of $1.80, which translates to a yield of around 5.7%. Even with it underperforming the top two companies, a consensus among 23 analysts rates the stock as a “Strong Buy,” with a score of 4.61/5, highlighting the company’s strong performance expectations.
Permian Resources Corp is an independent oil and natural gas company focused on these properties, primarily in the Delaware Basin. The company was formed in 2022 following the merger of Centennial Resource Development and Colgate Energy.
Permian Resources recently closed on the acquisition of a lease and copyright in Eddy and Lea Counties, New Mexico. This agreement will strengthen its position in the center of the Delaware Basin.
Turning to its most recent financial statements, Permian Resources reported that sales decreased about 4% from the same quarter last year to $1.2 billion. It also incurred a net loss of about 12% year over year to $207.1 million.
Permian Resources pays an annual forward dividend of $0.60, which translates to a yield of approximately 5%. 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 as 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 recently founded in 2019 and is based in Dallas, Texas.
Just last month, NETSTREIT Corp raised $450 million in new financing and modified its credit facilities. The deal adds two senior unsecured term loans totaling $450 million, with $300 million funded at closing and the remainder available through 2026.
Since we’re talking numbers, the company’s most recent financial statements reported that sales increased 22% from the same quarter last year to $48.3 million, while its net income also increased about 243% year-over-year to $3.3 million, recovering from a significant loss.
NTST shares are trading at around $19 and the company pays an annual forward dividend of $0.86, which translates to a yield of around 4.5%. Now, this may be the lowest performing stock on this list, but it’s still higher than average. Meanwhile, a consensus among 17 analysts rates the stock as a “Strong Buy,” a rating that has been strengthening over the past three months.
These five dividend-paying companies offer solid returns and strong growth potential. But while dividend yield is an attractive metric to invest in, it’s also essential to monitor a company’s stability, cash flow strength, and other factors that could alter payouts.
As of the date of publication, Rick Orford had no (directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are for informational purposes only. This article was originally published on Barchart.com
