Stock markets are on the up and near record highs, a condition that would ordinarily make life difficult for dividend investors. High market values usually result in lower dividend yields – but even in today’s climate, it is still possible to find a high-yielding dividend payer. However, you need to look carefully. Last year’s market history was unusual to say the least. Last winter saw the steepest and deepest recession in market history – but it was followed by a rapid recovery that is only now slowing. Many companies withdrew their dividends at the height of the coronavirus panic, but now they are finding that returns are too low to attract investors and are trying to increase payments again. In short, the stock market’s valuation balance is out of whack, and stocks are still trying to get it back. It leaves a bleak picture for investors trying to navigate these muddy waters. Wall Street analysts and the TipRanks database can work together to make sense of the seemingly patternless situation. The analysts review the stocks and explain how they fit. The TipRanks data provides an objective context and you can decide whether this 10% dividend yield is right for your portfolio. Ready Capital Corporation (RC) We’re starting with a Real Estate Investment Trust (REIT) focused on the commercial market segment. Ready Capital purchases, grants, funds, and manages commercial real estate loans and securities backed by them. The company’s portfolio also includes apartment buildings. Ready Capital reported 20 solid results for the third quarter in its most recent quarterly statement. The result was 63 cents per share. This result exceeded expectations by 75% and increased by 133% over the previous year. The company ended the third quarter with more than $ 221 million in cash and liquidity available. In the fourth quarter of 2020, Ready Capital completed loans totaling $ 225 million for projects in 11 states. The projects include refinancing, refurbishment and renovation. The full fourth quarter results will be released in March. Ready Capital’s level of confidence is evident in the company’s recent announcement that it will merge with Anworth Mortgage to create a $ 1 billion entity. In the meantime, investors should note that Ready Capital has announced its dividend for Q4 20 and the payment has increased for the second year in a row. The company had cut its dividend in the second quarter when COVID hit as a precaution against weak earnings, but increased the payment as pandemic fears gradually ease. The current dividend of 35 cents per share will be paid out at the end of this month. It annualizes to $ 1.40 for a sky-high return of 12%. On Raymond James’ stock, 5-star analyst Stephen Laws said: “Recent results have benefited from interest-free earnings and strength in the lending segment and we expect the increased contributions to continue in the short term. This outlook gives us more confidence in the sustainability of dividends, which we believe warrants a higher valuation multiple. “Laws sees the company’s merger with Anworth as positive and refers to the combination.[We] Expect RC to convert the capital currently invested in the ANH portfolio into new investments in RC’s target classes. “Consistent with his comments, Laws rates RC stocks as outperforming (ie buying) with a target price of $ 14.25. Its target implies an upward move of 23% over the next 12 months. (To see Laws’ track record, click here.) There are two recent reviews of Ready Capital and both are buys, giving the stock a consensus rating for a moderate buy. The shares of this REIT are selling for $ 11.57 while the average price target is $ 13.63, indicating growth of ~ 18% over the coming year. (See RC stock analysis on TipRanks.) Nustar Energy LP (NS) While the energy and liquid chemicals markets may not appear to be natural partners, they are seeing a lot of overlap. Crude oil and natural gas are very dangerous for transportation and storage, an important trait they share with industrial chemicals and products like ammonia and asphalt. Nustar Energy is a major midstream player in the oil industry with more than 10,000 miles of pipeline spanning 73 terminals and storage facilities. The relatively low oil prices of the past two years have had a negative impact on the energy sector’s income statement – without taking into account the impact of the COVID pandemic on the demand side. These factors are evident in Nustar’s sales, which declined in the first half of 2019 and have remained low since then. The number for the third quarter of 20 is $ 362 million, close to the median for the last six quarters. Through all of this, Nustar has maintained its commitment to a solid dividend payout for investors. Alluding to the pandemic problems, the company reduced its dividend by a third earlier this year, citing the need to keep the payment sustainable. The final payment, last sent in November, is 40 cents per share. This rate is annualized to $ 1.60 and yields a 10% return. Barclays analyst Theresa Chen sees Nustar as a solid addition to the portfolio and writes: “We believe NS offers unique offensive and defensive characteristics that position the stock well compared to midstream competitors. NS benefits from a stable footprint of refined products, exposure to core areas in the Permian Basin, a foothold in the burgeoning renewable fuel value chain, and strategic Corpus Christi exports. We believe NS is a compelling investment idea for the next 12 months. “Chen sets a target price of $ 20 on the stock, supports its overweight (i.e. buy) and suggests an uptrend of ~ 27% for the year. (To see Chen’s track record, click here.) Interestingly, unlike Chen’s bullish stance, the road is currently tepid on the midstream company’s prospects. Based on 6 analysts tracked by TipRanks over the past 3 months, 2 rate NS as buy, 3 as hold and one as sell. The 12-month average price target is $ 16.40, which is an increase of ~ 5% from current levels. (See NS stock analysis on TipRanks.) To find great ideas for trading dividend stocks at attractive valuations, check out TipRanks ‘Best Stocks to Buy, a newly launched tool that brings together all of the insights into TipRanks’ stocks. Disclaimer: The opinions expressed in this article are solely those of the analysts presented. The content is intended to be used for informational purposes only. It is very important that you do your own analysis before making any investment.