Investors seeking high yields in the stock market may want to focus on dividend stocks, which have historically contributed 30-90% of the S&P 500’s total returns over time. Using the TipRanks platform, two stocks that offer at least a 12% yield have been identified: Seven Hills Realty Trust (SEVN) and Rithm Capital (RITM).
Operating as a real estate investment trust (REIT), Seven Hills Realty Trust is a finance company that specializes in middle market and transitional commercial real estate within the US markets. The company’s dividend policies are impacted by governmental regulations that require a certain percentage of profits to be returned to shareholders each year, which usually result in reliable payments and high yields.
In Rithm Capital’s case, the company has paid out over $4.4 billion in dividends since its formation through a restructuring in the summer of 2021. The dividends are supported by a solid base of earnings available for distribution.
According to JMP analyst Chris Muller, SEVN shares deserve an Outperform rating, equivalent to a Buy recommendation, along with a $12.50 price target that suggests a 26% one-year increase in value. Factoring in the existing dividend yield and anticipated price appreciation, the stock exhibits a potential total return profile of roughly 40%. RITM’s current average price target is $16.50, implying a 22% one-year upside potential.
Overall, dividend stocks like SEVN and RITM offer investors the opportunity for high yields and potential for total return.
