Why Settle for 4%? These 2 ‘Strong Buy’ Dividend Stocks Yield Around 7% With Double-Digit Upside

Dividend stocks are a perennial favorite investment sector, even if they do have a reputation as the ‘safe and boring’ choice. They offer investors a solid set of advantages, most importantly a reliable cash flow with no strings attached.

The cash flow is important, because a sound, reliable income stream is always welcome. For investors, it’s the key attraction in dividend stocks. The dividend payment is a regular stream of cash that adds to the asset’s total return and can be used in any way the investor sees fit.

The best dividend stocks, of course, are those that pay the highest yield. If the yield is too low, it won’t beat inflation. But there’s no such thing as a dividend yield that’s ‘too high,’ so why settle for 4% when there are plenty of dividend payers offering yields of 7% or better?

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And some of those high-yield dividend stocks are getting tagged by Wall Street’s analysts as ‘Strong Buys,’ a clear sign that there’s plenty here to round out a portfolio. And when those same analysts are also predicting double-digit upside for the div payers? That’s when investors had better pay attention.

We’re keeping this in mind today, as we open up the TipRanks database to look up two such stocks – Strong Buy dividend payers that are combining 7% yields with double-digit upside potentials. Let’s give them a closer look and see just why they’re such compelling choices.

JOYY, Inc. (JOYY)

We’ll start with JOYY, a Singapore-based global technology and internet company. JOYY focuses its main revenue-generating business on the Middle East and Southeast Asia, where its Bigo Live platform has become a popular livestreaming outlet. Bigo gives users an interactive stage for hosting and watching livestream sessions, sharing lifetime experiences, and showcasing talents to a global audience. Bigo is available in more than 150 countries, and Bigo Ads represents JOYY’s fastest-growing revenue source.

In addition to Bigo, JOYY’s other online platforms include Hago, a multi-user social network that combines games, audio, and video streaming, and Likee, a short-form video social platform available globally. The underlying common denominator here is shareable video. JOYY’s platforms all contain an element of digital video streaming or sharing, a fast-growing segment of the social media landscape.

As with Bigo, JOYY’s Hago and Likee platforms both have an active presence globally, with a strong focus on Southeast Asia and the Middle East. Hago is also active in South America, and Likee is active in Europe. JOYY has been conducting active operations since its founding in 2005, and over the years has adapted its platforms and products to the changing global internet scene.

The company has a thriving online ads business. The strength can be seen in the company’s last quarterly report, which covered 2Q26. In the report, the total top line came to $590.8 million, up more than 16% year-over-year, and $20.36 million better than had been expected. Bigo Ads net revenue was the fastest-growing portion of the total, rising 53.1% year-over-year to reach $133.7 million. At the bottom line, JOYY is profitable – even if EPS was down in 2Q26 compared to 2Q25. The non-GAAP income per share came to $1.24. This was 4 cents per share better than expected, although it was down from the prior-year period’s figure of $1.44.

JOYY had sound cash balances on hand, with $3.06 billion in net cash available at the end of Q2. The company’s ‘net cash from operating activities’ in the quarter came to $64.9 million, up from $57.6 million one year earlier.

The company’s cash reserves and profitability support a strong shareholder return policy. JOYY has an active share repurchase plan, having authorized a new $600 million in such repurchases this past May. And the company pays out a regular common share cash dividend. The next payment, for $1.55 per American depositary share, is due to be sent out on October 16. At the annualized rate of $6.20 per share, it gives a robust forward yield of 8.3%.

This stock has caught the attention of J.P. Morgan analyst Daniel Chen, who sees the combination of shareholder returns, cash generation, and growing ad revenue as clear advantages. He writes, “We expect more share price upside from here: 1) JOYY’s latest shareholder return policy in May 2026 suggests a 15% annual shareholder return. We believe its rich net cash on hand and sizable operating cash flow/interest income can support a sustainable shareholder return in the long run. We estimate if JOYY’s share price rises 50% from the current level, it would offer an attractive 10% annual shareholder return; and, 2) we are positive on Bigo Ads’s growth outlook, supported by a sizable programmatic ads market and JOYY’s strong data/algorithm know-how in digital entertainment/eCommerce verticals (from Bigo/Likee/ Shopline). We expect BIGO ads revenue to show a 39% CAGR in 2027-28E, driving 19%/30% growth in consolidated NP/OP during the same period. JOYY is trading at 14x 2026E P/E, based on JPMe.”

Quantifying this stance, Chen gives JOYY an Overweight (Buy) rating, along with a $96 price target that suggests a one-year gain of 28%. Add in the dividend yield, the total return can exceed 36% by this time next year. (To watch Chen’s track record, click here.)

JOYY’s Strong Buy consensus rating is based on 5 recent analyst reviews that split to 4 Buys and 1 Hold. The stock is priced at $74.83 and its $85.80 average target price indicates an upside of 15% on the one-year time frame. (See JOYY stock forecast.)

CTO Realty Growth, Inc. (CTO)

The next dividend stock we’ll look at is CTO Realty Growth, a real estate investment trust. These stocks, REITs, are known for paying out strong dividends – they receive favorable tax treatment if they return a certain percentage of profits directly to shareholders, and dividends make a convenient mode of compliance. CTO is active in the commercial real estate sector, and has assembled a portfolio of 21 properties to support its operations.

CTO’s chief work is acquiring, owning, and leasing its properties. The company’s portfolio composition focuses on high-quality, retail-based properties, particularly in higher-growth markets within the US. CTO’s current property list is in the Sun Belt, with seven properties in Florida, five in Georgia, four in Texas, three in North Carolina, and two in Arizona. CTO manages these properties and leases them to stable retail tenants, and as of June 30 this year had a total leased occupancy of 95.4%, for a 150-basis point gain year-over-year.

In addition to its work as a REIT, CTO also acts as the external manager for another REIT, the Alpine Income Property Trust. Alpine focuses on net lease activities. Along with managing it, CTO also owns a substantial noncontrolling equity stake in Alpine, and in the last reported quarter listed $2.1 million in income derived from Alpine.

CTO’s set of financial statements covered 2Q26, and in that quarter, the company had total revenues of $43.83 million, for a 16.5% year-over-year gain – and beat the forecast by $1.52 million. The bottom line was reported as a GAAP FFO of $0.53, a figure that beat expectations by a penny per share. FFO is a key metric for REITs, as it directly supports the dividend.

The next dividend is set for payment on September 30, at a rate of $0.38 per common share. At the annualized rate of $1.52 per common share, the dividend gives a yield of 7.3%. CTO has held its dividend at $0.38 since 2022. The company states that it has been paying out dividends for over 50 years.

Jay Kornreich, covering this stock for Cantor, notes that CTO acts in a strong sector – shopping centers – and that this gives the REIT a solid foundation. He says of CTO, “The strength of shopping center fundamentals has extended to the power centers becoming a landlord’s market. This has benefited CTO and allowed it to push rent at its shopping centers. Additionally, this demand created the opportunity for the company to go under contract to sell two vacant big box assets at Carolina Pavilion instead of waiting to lease them up. This now leaves only one vacant big box asset from the original remaining nine that still needs to be leased. The eight prior vacancies and final one, which is under negotiation, are expected to average positive lease spreads of 75% to the previous in-place rent. This has pushed the signed-not- opened pipeline to $6.3M.”

When Kornreich summarizes his stance, he puts an Overweight (Buy) rating on the stock, and complements that with a $25 price target that suggests a one-year upside potential of 20%. With the dividend yield added in, the total return for this stock can hit more than 27%. (To watch Kornreich’s track record, click here.)

The Strong Buy consensus rating on CTO is unanimous – based on 5 recent positive analyst reviews. The stock is priced at $20.83 currently, and the $24.60 average price target indicates room for an 18% upside by this time next year. (See CTO stock forecast.)

Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

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