High dividend yields and the recent success of some of the Magnificent Seven stocks have made investors more interested in dividend-paying stocks. However, many experts warn that these stocks may be part of an overcrowded trade, with “Long Magnificent 7” being identified as the most crowded trade for multiple months in a row according to Bank of America’s June Global Fund Manager Survey.
If you’re looking for strong dividend-paying stocks with potential for growth, don’t overlook smaller and less popular options. While not all dividend stocks are created equal, a high dividend yield does not always indicate a better investment. Companies that pay high dividends may struggle to maintain them long-term, which could lead to stock price declines if dividends are cut.
Fortunately, TipRanks has compiled a list of 14 stocks with the highest dividend yields and a “strong buy” analyst consensus rating. This list can serve as a starting point for investors looking to explore dividend-paying stocks with potential for growth.
