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3 Big Dividend Stocks Yielding at Least 8%; Analysts Say ‘Buy’

We’ll talk about dividend stocks, but we’ll get there through tax policy. The connection is simple: Government spending is going up, as exemplified by the $1.9 trillion COVID stimulus bill passed this month. Stimulative cash infusions into the economy are likely to boost consumer spending, and there are worries that the Biden Administration has no plans to pay for its increased spending. Several tax proposals made into the Democratic Party discourse in last year’s election, and President Biden was elected on at least an implicit promise to raise taxes on wealthier taxpayers. Should the progressive Democrats push these proposals into law, it could potentially make an immediate, and likely negative, impact on the stock markets. And that brings us to dividend stocks. These traditionally defensive investments offer investors a ready income stream through the dividend payments, no matter how the market moves. The key factor is the yield, or the return rate of the dividend. Wall Street’s analysts have been doing some of the footwork for us, pinpointing dividend-paying stocks that have kept up high yields, at least 8% to be exact. Opening up the TipRanks database, we examine the details behind three such stocks to find out what else makes them compelling buys. Arbor Realty Trust (ABR) The first dividend stock we’ll look at is Arbor Realty Trust, a direct lender in the apartment complex segment. Arbor funds small loans for Fannie Mae and Freddie Mac; in the fourth quarter last year, ending on December 31, the company originated over $2.7 billion in loans. Arbor’s business is growing, and that is visible in both the company’s quarterly results and the stock value. ABR reported year-over-year revenue increases in each quarter of 2020 – even in the first quarter, during which EPS came in negative due to the corona crisis. In the most recent quarter, 4Q20, the company showed $125.6 million in total revenues, up 54% from the year ago quarter. EPS came in at 80 cents per share, compared to 72 cents in Q3 and 34 cents in 4Q19. Turning to the share value, ABR is up 211% in the last 12 months, far outpacing the broader markets. The company also provides investors with a strong dividend. Arbor has a 2-year history of keeping the payment reliable, and the current payment, sent out earlier this month for 33 cents per common share, marked the seventh dividend increase in the last 9 quarters. At $1.32 annualized, the dividend yields 8.57%, far higher than the 1.78% average found among peer companies. 5-star analyst Stephen DeLaney, of JMP, is impressed with Arbor’s overall position, especially regarding the company’s ability to produce strong agency volumes. “Agency originations in the fourth quarter were $2.75B, an impressive increase of 88% from $1.47B in the third quarter. The pipeline for new originations is showing no signs of a slowdown yet and the company expects the…