Wall Street Rarely Agrees, But It Just Did on These 5 Dividend Stocks Yielding 5% and More

Investors love dividend stocks because they provide dependable passive income streams and an excellent opportunity for solid total return. Total return includes interest, capital gains, dividends, and distributions realized over time. In other words, the total return on an investment or portfolio consists of income and stock appreciation. At 24/7 Wall St., we have focused on dividend stocks for 20 years because, despite the stock market’s ups and downs, many people need reliable passive income streams to supplement their income from employment or other sources such as Social Security and pensions.

We asked Google’s Gemini AI bot to screen for stocks yielding 5% or more that Wall Street research analysts like best and have the most Buy ratings. Not surprisingly, many of the companies that we have recommended in the past showed up on the list, and many are stocks we have followed for years.

The upside for investors is that when Wall Street analysts agree on certain companies, it helps balance risk for those looking for companies they can depend on. The five we chose from the group have delivered dependable dividends and earnings for years. In a market where interest rate increases have hit many dividend-paying names, it makes sense to look for solid, attractive values.

Why Do We Cover the High-Yielding Dividend Stocks?

Since 1926, dividends have accounted for approximately 32% of the S&P 500’s total return, while capital appreciation has accounted for 68%. Therefore, sustainable dividend income and the potential for capital appreciation are essential to total return expectations. A study by Hartford Funds, in collaboration with Ned Davis Research, found that dividend stocks delivered an annualized return of 9.18% over 50 years (1973 to 2023). Over the same timeline, this was more than double the annualized return for non-payers (3.95%).

Here are five companies many Wall Street analysts now agree are Strong Buy ideas.

Amcor

This company is a Dividend Aristocrat and an excellent investment, as its products remain in high demand and it pays a substantial 6.22% dividend. Amcor executed a reverse stock split early this year. Amcor (NYSE: AMCR | AMCR Price Prediction) is engaged in packaging solutions for consumer and healthcare products. The company develops sustainable packaging in flexible and rigid formats across multiple materials. The stock earns high-conviction Buy ratings because of its significant scale as a global packaging leader and its highly reliable capital return program.

The company operates through two segments. The Flexibles segment comprises operations that manufacture flexible and film packaging for the food and beverage, medical and pharmaceutical, fresh produce, snack food, personal care, and other industries. The Rigid Packaging segment consists of operations that manufacture rigid containers for a broad range of predominantly beverage and food products, including:

• Carbonated soft drinks
• Water, juices, and sports drinks
• Milk-based beverages
• Spirits and wine
• Sauces
• Dressings and spreads
• Personal care items
• Plastic caps for a wide variety of applications

Amcor’s subsidiaries include:

• Berry Global
• Amcor Flexibles North America
• Amcor UK Finance
• Amcor Finance (USA)

Truist has a Buy rating with a $60 target price.

Energy Transfer

Energy Transfer (NYSE: ET) is one of North America’s largest and most diversified midstream energy companies. This top master limited partnership is a solid option for investors seeking energy exposure and income, paying a 6.69% distribution yield. Energy Transfer owns and operates one of the largest and most diversified portfolios of energy assets in the United States, with a strategic footprint across all major domestic production basins.

With 12 Buy ratings driven by upgraded EBITDA guidance and massive distributable cash flow, this is a solid energy idea now.

The company’s core operations include:

• Complementary natural gas midstream, intrastate, and interstate transportation and storage assets
• Crude oil, natural gas liquids (NGL), and refined product transportation and terminalling assets
• NGL fractionation
• Various acquisition and marketing assets

Following the acquisition of Enable Partners in December 2021, Energy Transfer owns and operates over 114,000 miles of pipelines and related assets in 41 states, spanning all major U.S. producing regions and markets. This solidifies its leadership position in the midstream sector.

Through its ownership of Energy Transfer Operating, formerly known as Energy Transfer Partners, the company also owns Lake Charles LNG Company; the general partner interests, the incentive distribution rights, and 28.5 million standard units of Sunoco (NYSE: SUN); and the public partner interests and 39.7 million standard units of USA Compression Partners (NYSE: USAC).

Capital One Financial has an Overweight rating with a $26 target price.

International Paper

With a rich 5.89% dividend and a product that remains in demand, this top stock is still incredibly attractive. International Paper (NYSE: IP) provides sustainable packaging solutions. The company produces renewable fiber-based packaging products and operates manufacturing facilities in North America, Latin America, Europe, and North Africa. Across 13 recent analyst ratings, the company has strong Wall Street backing, with price targets implying up to 77% potential upside.

Its segments include:

• Packaging Solutions North America
• Packaging Solutions EMEA

The company’s products and services include Packaging, Packaging Services, and Recycling. It provides corrugated packaging, solid fiber, corrugated sheets, retail displays, bulk packaging, and more.

International Paper also offers related services such as design and fulfillment to support these solutions. It provides a range of packaging and display services, from design and testing to fulfillment, including structural and graphic design, printing, testing, mechanical assembly, and packaging.

The company offers recycling solutions and services to manage fiber recovery programs for retailers, grocers, e-commerce companies, distribution centers, manufacturers, and its own box plants.

Citigroup has a Buy rating with a $47 target price.

Mid-America Apartment Communities

This company pays a reliable 5.23% dividend and offers investors a top-tier A-/A3 credit rating and rare financial stability among real estate investment trusts (REITs). Mid-America Apartment Communities (NYSE: MAA) is a multifamily-focused, self-administered, and self-managed real estate investment trust. The company owns, operates, acquires, and selectively develops apartment communities primarily located in the Southeast, Southwest, and Mid-Atlantic regions of the United States.

The Same Store segment represents those apartment communities that have been owned and stabilized for at least 12 months as of the first day of the calendar year. The Non-Same Store and Other segment includes recently acquired communities, communities being developed or on lease-up, communities that have been disposed of or identified for disposition, and others. This segment also includes non-multifamily activities and expenses related to severe weather events.

Mid-America Apartment Communities has ownership interest in apartment units, including communities in development, across 16 states and the District of Columbia.

Citigroup has a Buy rating with a $143 target price.

Verizon

Verizon Communications (NYSE:VZ) is an American multinational telecommunications company that continues to offer tremendous value. It trades at 9.13 times its estimated 2026 earnings and pays a 6.08% dividend. Verizon provides communications, technology, information, and entertainment products and services to consumers, businesses, and government entities worldwide.

Verizon’s trailing 12-month interest coverage ratio is 4.6× to 5×, providing ample cushion for dividend payments. With a very predictable revenue stream from telecom services, the company has less exposure to commodity cycles. In addition, its scale helps with financing and absorbing shocks. Public reports indicate that management has increased the dividend for 20 consecutive years and expects at least $21.5 billion in free cash flow this year. While higher debt refinancing costs have weighed on capital-intensive telecom operations, Verizon offers strong, steady cash flow.

It operates in two segments. The Consumer segment provides wireless services across the United States through Verizon and TracFone networks, as well as through wholesale and other arrangements. It also provides fixed wireless access (FWA) broadband through its wireless networks and related equipment and devices, such as:

• Smartphones
• Tablets
• Smartwatches
• Other wireless-enabled connected devices

The segment also offers wireline services in the Mid-Atlantic and northeastern United States through its fiber-optic network, Verizon Fios product portfolio, and copper-based network.

The Business segment provides wireless and wireline communications services and products, including:

• FWA broadband
• Data
• Video and conferencing
• Corporate networking
• Security and managed network
• Local and long-distance voice

Network access services to deliver various IoT services and products to businesses, government customers, and wireless and wireline carriers in the United States and internationally.

TD Cowen has a Buy rating with a $56 target price.

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