Now that the Federal Reserve is taking a rate-cutting stance, income-seeking investors should look beyond bonds. As yields on fixed income securities decline, dividend-paying stocks, especially those with reliable payouts and high yields, look attractive.
With that in mind, I turned to bar diagram stock screener to look for the most attractive opportunities. The goal was simple: find dividend stocks that yielded at least 7% and were backed by bullish analyst sentiment. CTO Realty Growth (CTO) and Energy Transfer (ET) stood out for their strong payment history and high performance.
Both companies offer dividend yields well above 7% and maintain a consistent track record of returning cash to shareholders. Additionally, Wall Street analysts love this stock and maintain “Strong Buy” consensus ratings. This shows that analysts believe these companies are financially sound, will continue to grow their earnings, and continue to reward their investors with reliable dividends.
CTO Realty Growth is a real estate investment trust (REIT) focused on high-quality retail properties in fast-growing U.S. markets. Its portfolio focuses on multi-tenant shopping centers anchored by essential businesses. These tenants help ensure consistent foot traffic and provide a more resilient revenue base.
CTO also has a stake in Alpine Income Property Trust (PINE), another publicly traded REIT, providing an additional income stream.
The company’s leasing momentum has been strong. Through September 30, CTO had 482,000 square feet of total leasing activity for the year, including 424,000 square feet of comparable leases with an impressive 21.7% rental margin. During the third quarter, the company secured new and renewed leases totaling 143,000 square feet, with an average base rent of $23 per square foot. After the end of the quarter, it further strengthened its presence by signing a major lease at the Shops at Legacy in Dallas, a premier mixed-use destination.
CTO is also filling in large anchor gaps. Six of the ten anchors that were previously vacant are now leased and the remaining four are under negotiation. These new anchor tenants are expected to increase both rental income and customer traffic. The company maintains a strong unopened signed portfolio valued at $5.5 million, positioning it well for future earnings growth. At the end of the third quarter, CTO’s portfolio was 94.2% leased and 90.6% occupied.
With a focus on high-growth markets, a strong tenant base, robust leasing activity, and efforts to reduce leverage, CTO appears well poised to enhance shareholder value. The REIT has paid dividends continuously since 1976 and is well positioned to sustain those payments. Analysts currently maintain a “Strong Buy” consensus rating and the stock offers an attractive forward yield of 8%.
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Energy Transfer operates extensive intrastate pipeline systems in the U.S. Its network connects major production regions to utilities, industrial consumers, power plants, and other pipelines, ensuring strong asset utilization and consistent cash generation.
The company’s diversified revenue model and its reliance on long-term, fee-based contracts add stability to its operations and protect it from commodity price volatility.
Thanks to its high-quality earnings base, Energy Transfer has steadily increased its dividends for years. It recently raised its quarterly dividend to $0.3325 per share, or $1.33 annually, for a yield of about 7.9%.
Energy Transfer’s future payments are likely to be supported by its multi-billion-dollar project portfolio, which is expected to generate returns of around 15 years as new infrastructure comes online under secure long-term agreements. At the same time, the company is benefiting from an increase in demand for natural gas in the United States driven by data centers.
It recently signed agreements to supply natural gas to a major hyperscaler in Texas and three Oracle (ORCL) data centers. Additionally, a decade-long exclusivity agreement with Fermi America and contracts with several data center and power plant customers highlight the strong and growing attraction of companies requiring reliable natural gas capacity.
To further increase visibility into future cash flow, Energy Transfer signed a 20-year transportation agreement with Entergy Louisiana, beginning in 2028. Over the past year alone, it contracted more than 6 billion cubic feet per day of pipeline capacity with an average contract life of more than 18 years, representing more than $25 billion in future revenue.
With steady demand, a strong pipeline and attractive yield, Energy Transfer is an attractive income stock. Analysts have a “Strong Buy” consensus rating on ET stock.
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On the date of publication, Amit Singh had no (either 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
