Investors love dividend stocks. They not only provide dependable income, but they also give investors a great opportunity for solid total return. Total return includes interest, capital gains, dividends and distributions realized over a given period. In other words, the total return on an investment or a portfolio includes both dividend income and stock appreciation.
We screened our 24/7 Wall St. research database looking for companies in the S&P 500 that were rated Buy at major Wall Street firms and also paid among the highest dividends in the venerable index. In addition, we focused on seven companies that are very timely stocks to own for the second half of 2023. They are listed below by the highest dividend yields.
It is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
Annaly Capital Management
This mortgage real estate investment trust (REIT) has been around for years and is a top income idea. Annaly Capital Management Inc. (NYSE: NLY), a diversified capital manager, engages in mortgage finance and corporate middle-market lending.
The company invests in agency mortgage-backed securities, mortgage-servicing rights, agency commercial mortgage-backed securities, non-agency residential mortgage assets, residential mortgage loans, credit risk transfer securities, corporate debts and other commercial real estate investments. It has elected to be taxed as a REIT.
Its solid first-quarter earnings and revenue results exceeded analyst expectations. Trading at a tiny 6.2 times 2023 earnings, the stock is offering aggressive investors a huge opportunity.
Shareholders receive a 12.92% dividend. Piper Sandler has a $21.50 target price on Annaly Capital Management stock. The consensus target is $21.44, and shares closed on Tuesday at $20.60.
Devon Energy
This may be one of the best value propositions in its sector, and it was one of the first to utilize a variable dividend strategy. Devon Energy Corp. (NYSE: DVN) is an independent energy company that primarily engages in the exploration, development and production of oil, natural gas and natural gas liquids in the United States and Canada.
Devon Energy operates approximately 19,000 wells and also offers midstream energy services, including gathering, transmission, processing, fractionation and marketing to producers of natural gas, natural gas liquids (NGLs), crude oil and condensate through its natural gas pipelines, plants and treatment facilities.
Production is weighted toward crude oil while growth opportunities are liquids focused, anchored by the Delaware Basin, SCOOP/STACK, Eagle Ford Shale, Canadian Oil Sands, and the Barnett. Devon also owns equity in the publicly traded midstream MLP EnLink.
Investors receive a 9.57% dividend. The Truist Financial target price is $81, and Devon Energy stock has a $62.08 consensus target. The shares closed at $47.32 on Tuesday.
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