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Looking for a dividend yield of at least 9%? Analysts suggest buying two dividend stocks

You really can’t go wrong with dividend stocks. These stocks provide a stable, long-term income stream that supplements returns from stock appreciation. And even if the stock price falls, you can still make money through the dividend. It’s a solid benefit to add to any stock portfolio – and can be further magnified by its high-yield dividends, which can deliver yields of 9% or better.

For investors looking for these high-yield dividend payers, the analysts on the street are at work. They’ve sifted through the ranks of div stocks and labeled several of the 9%+ high-yield payers currently as Buys.

We used the TipRanks platform to get the details of two of these picks. Let’s dive in.

Hercules capital (HTGC)

We’ll start with Hercules Capital, a BDC or business development company. Hercules focuses its work on emerging companies, especially those with a preference for sciences and technology: life sciences, sustainable and renewable technology and SaaS financing technology. Hercules is a leading specialist financing provider in this niche, supporting a venture capital-backed customer base with access to credit services and growth capital financing.

Since its founding in 2003, Hercules has provided financing to more than 660 companies, totaling more than $21 billion in capital commitments. The company currently has more than $4.6 billion in assets under management.

In terms of dividends, Hercules has long been committed to maintaining capital returns for shareholders. The company’s current regular dividend, which was last paid on October 28 on November 20, was set at 40 cents per common share and was supplemented by a special dividend of 8 cents per share. The combined dividend payout, of 48 cents per common share, amounts to $1.92 per share annually and delivers a strong forward yield of 9.75%.

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That dividend is supported by Hercules’ financial results, which were reported for the third quarter of 24 at the end of October. The company’s total investment income in the quarter was reported at $125.25 million, which management said is a company quarterly record. Investment income rose 7.3% year over year, although it exceeded expectations by $2.9 million. Ultimately, Hercules had quarterly net investment income of 51 cents per share.

This BDC has caught the attention of JMP’s Brian McKenna, an analyst in the top 2% of Wall Street equity experts, who is impressed by Hercules’ business prowess. McKenna writes of the company: “Hercules continues to demonstrate its leadership position in venture lending, and we are once again quite pleased with the strength of the quarter’s results and the company’s trajectory through year-end. Lower base rates and tighter spreads will clearly provide P&L headwinds going forward, but we also believe the company has demonstrated the ability to consistently deliver ROEs in the mid to upper teens for the cycle. So while the shares trade at a healthy valuation level on paper, we believe the underlying performance and prospects for the business more than justify this multiple.”

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