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5 Top Dividend Stocks to Invest in Now

Dividends are payouts from companies that share their profits with their investors. They offer a regular source of income that can increase over time. This makes them particularly attractive for long-term investments. Even a small dividend yield can result in impressive returns after many years. Dividends can offer protection against market volatility, which is another reason that investors include these stocks in their portfolios.

Strong & Moderate Buy Dividend Stocks

Using the TipRanks Dividend Calendar, we searched for top stocks with an ex-dividend date in December 2022. Investors need to own the stock by the ex-dividend date to receive the next payout. We focused on top dividend stocks with a Buy analyst rating consensus, at least an 8% yield, and an ‘Outperform’ Smart Score of at least nine out of 10, based on our data-driven stock score. We found five top stocks that match these criteria.

Top 5 Dividend Stocks

Medical Properties Trust (NYSE:MPW)

Dividend yield: 8.79% 
Ex-dividend date: Dec 07, 2022 
Payout ratio: 55.14%
Payout date: Jan 12, 2023

Medical Properties Trust is a healthcare-focused Real Estate Investment Trust. It owns 435 hospital facilities and about 44,000 licensed beds in 10 countries. MPW stock has received six Buy and three Hold recommendations for a Moderate Buy consensus rating. Further, analysts’ average price target of $17.38 implies 32.77% upside potential over the next 12 months. Medical Properties Trust stock also has a positive signal from hedge fund managers who bought 322.5K stock last quarter. TipRanks’ data shows that 9.7% of TipRanks’ investors have increased their holdings in MPW stock in one month. Overall, MPW stock sports an Outperform Smart Score of nine out of 10.

SFL Corporation (NYSE:SFL)

Dividend yield: 8.32% 
Ex-dividend date: Dec 13, 2022 
Payout ratio: 53.90%
Payout date: Dec 30, 2022

SFL Corporation is a leading ocean transport operator. Its stock commands a Moderate Buy consensus rating on TipRanks based on one Buy and one Hold recommendations. Moreover, analysts’ average price target of $12 implies 20.24% upside potential. SFL stock also has positive signals from hedge funds and bloggers. Moreover, our data shows that 2.1% of investors holding portfolios on TipRanks have increased their holdings in SFL stock in the last 30 days. SFL Corporation stock has an Outperform Smart Score of nine out of 10.

Ares Capital Corporation (NASDAQ:ARCC

Dividend yield: 8.96% 
Ex-dividend date: Dec 14, 2022 
Payout ratio: 46.73%
Payout date: Dec 29, 2022

Ares Capital is a business development company focusing on small- and mid-market enterprises. ARCC stock has a Strong Buy consensus rating on TipRanks based on eight Buy and one Hold recommendations. Moreover, analysts’ average price target of $21 implies 6.28% upside potential. ARCC stock has positive indicators from hedge funds and insiders. Hedge funds bought 80.5K ARCC stock last quarter. Meanwhile, insiders bought ARCC stock worth $225.5K. Ares Capital Corporation stock carries a “Perfect 10” Smart Score on TipRanks. 

Capital Southwest Corporation (NASDAQ:CSWC

Dividend yield: 10.55% 
Ex-dividend date: Dec 14, 2022 
Payout ratio: 127.62%
Payout date: Dec 30, 2022           

Capital Southwest is a mid-market lending firm (Business Development Company) focusing on middle-market businesses. CSWC stock has received two Buy and one Hold recommendation for a Moderate Buy consensus rating. Further, analysts’ average price target of $21.33 implies 16.62% upside potential. Our data shows that hedge funds sold 63.1K CSWC stock last quarter. However, insiders bought CSWC stock worth $19.2K. Overall, Capital Southwest Corporation stock sports a “Perfect 10” Smart Score on TipRanks.

TriplePoint Venture Growth (NYSE:TPVG)

Dividend yield: 10.82% 
Ex-dividend date: Dec 14, 2022 
Payout ratio: 80.90%
Payout date: Dec 30, 2022           

TriplePoint Venture is a business development company. It has a Strong Buy consensus rating on TipRanks based on three Buy and one Hold recommendations. Meanwhile, analysts’ average price target of $14 implies 5.18% upside potential. Our data shows that hedge funds sold 10.6K TPVG stock last quarter. Nevertheless, insiders bought TPVG stock worth $133.4K. Overall, TriplePoint Venture Growth stock has an Outperform Smart Score of nine out of 10.

Dividend Yield & Dividend Payout

Companies determine dividend amounts per share. This can make it difficult for investors to compare the best dividend stocks. Imagine you invest $1,000 in 2 companies. One has shares that trade for $10, and the other has shares that trade for $500. Both offer investors $2 per share in dividend payments. The solution to comparing the companies’ dividends is dividend yield, which shows dividend payment relative to the share price as a percentage.

See Also: Dividend Yield Calculator

It is worth knowing the payout ratio of a dividend stock. This is the proportion of earnings a company pays out as dividends. If the ratio is over 100% this may mean that there is a possibility that a company will reduce its dividends.

See which other stocks have an ex-dividend date in December 2022.

Disclaimer: 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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