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Analysts Eye Up to 11% Dividend Yield: Top 2 Stocks to Buy Now

by Crypto Hobby

Updated August 18, 2025

Amidst market volatility and a potential downturn predicted by some strategists, investors are increasingly turning to dividend-paying stocks for stability and income.

Analysts are identifying specific companies that offer attractive yields, with some reaching as high as 11%, as a defensive strategy against market fluctuations.

This focus on high-yield dividends aims to provide a steady income stream that outpaces inflation.

Market Outlook and Defensive Strategies

Barry Bannister, chief equity strategist at Stifel, suggests that the recent stock market rebound, fueled by AI and capital spending, may not be sustainable.

He notes that the S&P 500 is trading at historically high valuations and could see a significant drop.

Despite this cautious outlook, Bannister advises investors to adopt defensive measures rather than exiting the market entirely.

This sentiment naturally steers attention towards dividend stocks as a classic defensive play, offering reliable income and a hedge against inflation.

Top Dividend Stock Picks

TipRanks has identified two dividend stocks that analysts are recommending as strong buys, offering yields up to 11%:

Ellington Financial (EFC): This real estate investment trust (REIT) focuses on generating attractive risk-adjusted total returns through a diverse portfolio of mortgage loans, mortgage-backed securities, and other assets. Ellington Financial offers a high, monthly dividend with a forward yield of 11.5%. Analyst Crispin Love of Piper Sandler maintains an Overweight rating on EFC, citing strength in its credit and Longbridge strategies and a positive earnings trajectory. The stock has a Moderate Buy consensus rating from analysts, with an average price target suggesting a potential upside.
Dorian LPG (LPG): As a leading carrier of liquefied petroleum gas (LPG), Dorian LPG operates a modern fleet of very large gas carriers (VLGCs). The company pays an irregular dividend, which has been consistent since 2021, with the latest declaration offering a forward yield of 8%. Despite a recent softer financial report, Jefferies analyst Omar Nokta remains bullish, rating LPG as a Buy. Nokta points to strengthening VLGC spot rates and believes the company's shares are trading at a discount to their net asset value, making it a top pick in the LPG sector.

Analyst Consensus and Investment Potential

Ellington Financial (EFC) has a Moderate Buy consensus rating based on a 5-to-2 split favoring Buy ratings over Holds, with an average target price aligning with Piper Sandler's projection.

Dorian LPG (LPG) also holds a Moderate Buy consensus, with both recent analyst reviews being positive, and an average price target indicating potential upside.

Key Takeaways

Market strategists suggest a potential downturn, prompting a shift towards defensive investments.
High-yield dividend stocks are favored for their ability to provide steady income and inflation protection.
Ellington Financial (EFC) offers an 11.5% forward dividend yield and has strong analyst backing.
Dorian LPG (LPG) provides an 8% forward dividend yield and is considered a top pick by analysts despite recent financial headwinds.
Both stocks have Moderate Buy consensus ratings, indicating positive sentiment from the analyst community.