Alex Manea
Are you looking to get the most out of your investments? Dividend stocks are a great way to increase your revenue and help you reach your financial goals. It can be tricky knowing where to begin if you're just getting started in dividend investing. That's why we've scoured analysts' data for 5 highly-rated stocks with yields paying over 7% annually – so you don't have to! This blog post explores these five top dividend-paying stocks and provides insights into why they may be an excellent choice for beginner investors. Keep reading if you want to join the dividends club today!
Investing in dividend stocks is an excellent strategy for long-term investors looking to create passive income. With steady and reliable payouts, dividend stocks can provide much-needed cash flow while enhancing a portfolio's overall return with minimal risk. Dividend stocks are particularly well-suited for investors looking to generate income through their investments, such as retirees or those looking to supplement their income through investments.
Enterprise Products Partners LP (EPD) is a Fortune 500 company and one of the largest midstream energy companies that operate independently in North America. The Houston-based firm transports, stores, and processes natural gas, propane, crude oil, refined products, and other specialty liquids.
In 2020 EPD stock had a strong performance and is currently yielding 7.68%, making it an attractive pick for investors looking to receive a steady income stream from their investments. EPD has consistently increased its dividend since 2013, with a 4% compound annual growth rate (CAGR). In addition, the company offers certain tax advantages, which can make holding the stock even more rewarding for investors.
Investors looking to add EPD to their portfolio should know that the company has historically dealt with high volatility in commodity prices, which can affect its performance and dividend payments. Moreover, investors should also consider potential risks associated with investing in energy companies, such as declining demand for oil and gas due to environmental concerns and political uncertainty. Despite these risks, analysts view EPD as an excellent long-term investment and a reliable source of income.
In fact, at the time of writing, Wall Street analysts recommend EPD as a strong buy. According to the forecast by ten analysts in the last three months, EPD's share price could reach an average price of $31.60, a 29% increase from its current price.
Ares Capital Corporation (ARCC) is a publicly traded BDC or business development company. It provides debt and equity financing for middle-market companies in the United States. Ares Capital Corporation was founded in 1997 and has its headquarters in New York City.
ARCC operates as a business development company, a type of private equity firm. BDCs provide debt and equity financing to small and mid-sized businesses that cannot obtain funding from traditional lending sources such as banks. In addition to its core lending activities, ARCC also invests in other businesses, including venture capital, private equity, and real estate.
The company's profitability and stable dividends make it an attractive investment for income-oriented investors. However, investors should be aware of the risks associated with investing in BDCs, including volatility caused by changes in interest rates and credit conditions.
At the time of writing, ARCC is considered a strong buy by Wall Street analysts. The share price is expected to grow by an average of almost 9% in the next 12 months, according to 9 analyses made in the last three months.
Mercedes Benz Group AG is a multinational corporation that manufactures luxury cars and trucks. The company is one of the oldest on the market, dating back to 1886 when Karl Benz founded it.
Mercedes Benz Group AG is one of the largest automakers in the world and produces a wide range of luxury vehicles, including sedans, SUVs, and sports cars.
Despite its high price tags, Mercedes Benz vehicles are popular among consumers for their quality and luxury features. The company has an extensive portfolio of brands which includes Mercedes-Benz, Smart, Maybach, AMG, and others. In addition to its automotive business, Mercedes-Benz also operates several other businesses, such as trucking, financial services, and real estate.
Besides its strong dividend, analysts also predict that the company will have a significant rise in share price in the next 12 months. According to 17 Wall Street analysts, the average price target is $85.23, a 24% upside from its current price of $68.73. MBGAF is considered, at the moment, a strong buy.
OneMain Holdings Inc is a consumer finance company that specializes in providing loans to individuals with low credit scores. The company was founded in 1912 and is headquartered in Evansville, Indiana.
OneMain Holdings Inc operates a network of branches across the United States where it offers personal loans, auto loans, and other types of financing to consumers. The company has been profitable every year since it went public in 2009, and has grown its dividend at an average annual rate of 9%.
The company's profitability and stable dividends make it an attractive investment for income-oriented investors. However, investors should be aware of the risks associated with investing in consumer finance companies, such as volatility caused by changes in interest rates and credit conditions.
According to analyst forecasts, OMF is currently a strong buy, with an average target share price of $46.44 in the next 12 months, a 25% upside from its current price of $36.91. The forecast is based on nine analyses made by Wall Street experts in the last three months.
Stellantis NV is a Dutch technology company that manufactures lasers and other high-tech equipment.
Stellantis NV manufactures a wide range of lasers and other high-tech equipment for various medical, industrial, and defense applications. The company has a long history dating back to 1967 when it was founded as Philips Lasers.
In addition to its manufacturing business, Stellantis also operates a research and development division that develops new products and technologies. The company is headquartered in Eindhoven, Netherlands, and has subsidiaries in several other countries, including the United States, Germany, China, and Japan.
Investors should be aware of the risks associated with investing in technology companies, such as volatility caused by changes in demand and competition. There is also the risk that Stellantis may not be able to successfully develop and commercialize new products or technologies on a timely basis. Despite these risks, investors may find that this technology stock provides an attractive dividend yield for income-oriented investors.
At the time of writing, STLA is considered a strong buy by Wall Street analysts, who believe that the share price will reach an average value of $22.61 over the next 12 months. That's a 54% upside compared to its current value of $14.64.
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