In a big reversal over the past month, longer-dated Treasury securities yields have tumbled back to levels not seen since early September. While great news for those looking to buy a home, as mortgage rates have dropped from well over 7% back to around 6.5%, for investors that look for passive income they may need to look at top-yielding dividend stocks once again.
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We screened our 24/7 Wall St. dividend growth stock database looking for stocks that not only have very solid potential for 2023 but also pay the big and reliable dividends investors crave and most importantly need to help supplement their income streams. Seven top companies made the cut, and while all are rated Buy at major Wall Street firms, it is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.

Altria

This maker of tobacco products offers value investors a great entry point now as it has been hit as cigarette sales have slowed. Altria Group Inc. (NYSE: MO) is the parent company of Philip Morris USA (cigarettes), UST (smokeless), John Middleton (cigars), Ste. Michelle Wine Estates and Philip Morris Capital. PMUSA enjoys a 51% share of the U.S. cigarette market, led by its top cigarette brand Marlboro.

Altria also owns over 10% of Anheuser-Busch InBev, the world’s largest brewer. In March 2008, it spun off its international cigarette business. In December 2018 it acquired 35% of Juul Labs, but the stock was pounded last summer when the FDA announced a ban on all sales of Juul vape pens.

In October, the company, which at the height of its popularity dominated the market with its sweet flavors, agreed to pay $438.5 million in a settlement with 33 states and one territory over marketing its Juul product to teens. Altria announced recently that it is looking to end its noncompete agreement with Juul to compete more aggressively in the vape space on its own.

While this gets all sorted out, it is a good bet that investors still will receive the 8.13% dividend. Stifel has a $50 target price on Altria stock. The consensus target is $48.73, and shares closed on Tuesday at $46.21.

Coterra Energy

This company was formed by the closing of the $17 billion merger of Cabot Oil & Gas and Cimarex Energy in 2021. Coterra Energy Inc. (NASDAQ: CTRA) is an independent oil and gas company engaged in the development, exploration and production of oil, natural gas and natural gas liquids (NGLs) in the United States. It primarily focuses on the Marcellus Shale, with approximately 177,000 net acres in the dry gas window of the play located in Susquehanna County, Pennsylvania.

The company also holds Permian Basin properties with approximately 306,000 net acres and Anadarko Basin properties located in Oklahoma with approximately 182,000 net acres. In addition, it operates natural gas and saltwater disposal gathering systems in Texas. The company sells its natural gas to industrial customers, local distribution companies, oil and gas marketers, major energy companies, pipeline companies and power generation facilities.
As of December 31, 2021, Coterra had proved reserves of approximately 2,892,582 thousand barrels of oil equivalent, which include 189,429 thousand barrels of oil and other liquid hydrocarbons, 14,895 billion cubic feet of natural gas and 220,615 thousand barrels of natural gas liquids.

Coterra Energy stock investors receive a 9.65% dividend. Stifel’s $40 target price compares with the $36.13 consensus target and Tuesday’s close at $25.80.
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Medical Properties Trust

This real estate investment trust may offer investors the best value at current price levels. Medical Properties Trust Inc. (NYSE: MPW) acquires, develops and invests in health care facilities and leases health care facilities to health care operating companies and providers. The company also provides mortgage loans to health care operators, as well as working capital and other term loans to its tenants/borrowers.

With a growing portfolio and a versatile business model, Medical Properties Trust continues to rank high across Wall Street. The analysts noted that the company’s acute care hospitals rent coverage increased nicely and the company attributed the increase to better cost controls and higher patient admissions.

Shareholders receive a 9.25% distribution. The $18 Raymond James price target accompanies a Strong Buy rating. The consensus target for Medical Properties Trust stock is $16.46, and shares closed at $12.53 on Tuesday.

Rio Tinto

Shares of this mining company could explode higher if the world economy rebounds strongly in 2023. Rio Tinto PLC (NYSE: RIO), the world’s second-largest mining company, has operations in Australia, Africa, the Americas, Europe and Asia. It is the world’s largest producer of aluminum, second largest producer of iron ore, and a top five producer of alumina, uranium, mined copper, export thermal and coking coal, and diamonds.

In addition, Rio Tinto is also involved in alumina production; primary aluminum smelting; bauxite mining; alumina refining; and ilmenite, rutile and zircon mining, as well as the provision of gypsum.

Rio Tinto has a strong balance sheet and low-cost iron ore assets, as well as copper and aluminum assets, that offer leverage to an eventual cyclical recovery. Some on Wall Street believe that iron ore may continue to surprise to the upside in 2023.

The dividend yield here is 9.78%. The Credit Suisse price target is $75 while the consensus target is $71.19. Rio Tinto stock closed on Tuesday at $70.34.

Verizon

This top telecommunications stock offers tremendous value at current levels. Verizon Communications Inc. (NYSE: VZ) is one of the largest U.S. telecom companies. It provides wireless and wireline service to retail, enterprise and wholesale customers.

The company’s wireless network serves approximately 120 million mobile connections with 115 million postpaid subscribers. Its wireline business has undergone a period of secular decline due to wireless substitution and cable competition.
Verizon also provides converged communications, information and entertainment services over America’s most advanced fiber-optic network, and it delivers integrated business solutions to customers worldwide.

Verizon Communications comes with a 7.07% dividend. Raymond James has set its target price at $51, well above the $45.30 consensus target and Tuesday’s close at $36.89.
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VFC

This is the proverbial “off-the-radar” idea that can be purchased and held forever as it makes name-brand popular clothing. V.F. Corp. (NYSE: VFC) engages in the design, procurement, marketing and distribution of branded lifestyle apparel, footwear and related products for men, women and children in the Americas, Europe and elsewhere.

The company offers outdoor, merino wool and other natural fibers-based, lifestyle and casual apparel; footwear; equipment; accessories; outdoor-inspired, performance-based, youth culture/action sports-inspired, streetwear and protective work footwear; handbags, luggage, backpacks and totes; and work and work-inspired lifestyle apparel and footwear.

VFC provides its products under the North Face, Timberland, Smartwool, Icebreaker, Altra, Vans, Supreme, Kipling, Napapijri, Eastpak, JanSport, Dickies and Timberland PRO brand names. The company sells its products primarily to specialty stores, department stores, national chains and mass merchants, as well as through direct-to-consumer operations, including retail stores, concession retail stores and e-commerce sites and other digital platforms.

Shareholders gladly take the 6.95% dividend. Telsey Advisory has a $34 target price, and the consensus target is $31.07. Tuesday’s final trade was reported at $29.39 a share.

Vornado Realty Trust

Sporting a sizable dividend and offering investors a great inflation-hedging real estate play, this top stock is an incredible buy now. The Vornado Realty Trust (NYSE: VNO) portfolio is concentrated in the nation’s key market New York City, along with additional premier assets in both Chicago and San Francisco. It is the real estate industry leader in sustainability policy, owning and managing over 23 million square feet of LEED-certified buildings.

The company posted very solid quarterly results, as funds from operations and revenues grew 20.3% and 19.7%, respectively, year over year and both beat Wall Street estimates.

Investors receive a 9.63% distribution. Vornado Realty Trust stock has a $28 target price at Truist Financial. The consensus target is $25.45, and shares closed at $22.01 on Tuesday.

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Seven top companies that for a variety of reasons are trading incredibly cheaply and offering investors very timely entry points. With that noted, it still may be very prudent to just start with buying partial positions as the market still has plenty of issues to deal with, not the least of which is the ongoing inflation burden.

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