11%-Plus Dividend Yield and Double-Digit Upside: UBS Picks 2 Dividend Stocks to Buy

11%-Plus Dividend Yield and Double-Digit Upside: UBS Picks 2 Dividend Stocks to Buy TipRanks Sat, June 6, 2026 at 12:30 AM GMT+7 7 min read UBS STWD SEVN Dividend stocks have long been a favorite among income-focused investors, and for good reason. They offer the potential for a double reward – regular cash payments that land in your account regardless of market swings, along with the opportunity for long-term share price appreciation. Unlock trusted, data-backed investing tools with TipRanks Premium, from analyst ratings and forecasts to breaking news and portfolio analysis. Discover high-conviction stock picks and new investing opportunities with the TipRanks Smart Investor Newsletter And this brings us to real estate investment trusts (REITs), a classic choice for dividend investors. These companies own, manage, and lease real estate properties, and the sector is generally divided into residential and commercial REITs. For those seeking a more specialized investment, commercial mortgage REITs (mREITs) invest in commercial real estate debt, giving investors exposure to the sector without the need to own individual properties. For dividend investors, the key attraction is the typically high yield these companies offer. REITs receive favorable tax treatment when they distribute most of their taxable income to shareholders, helping support their generous dividends. mREITs have been out of favor recently, however, as higher interest rates and weaker occupancy trends have put pressure on the commercial real estate sector. Yet, UBS analyst Marissa Lobo believes conditions are improving and that the market’s recovery still has room to run. “The commercial real estate market continued to show signs of improvement. This can be seen from increasing transaction volume and improving price levels from 2025. We expect continued improvement in the level of problem assets in commercial real estate as the asset class continues to recover from its credit cycle. However, more recently macro volatility associated with the Iran conflict has introduced a new layer of borrower hesitation that has slowed momentum at the margin. The continued optimism for CRE market recovery is supported by the recent Evidence Lab CRE broker survey, which showed a positive outlook for the market in general, although the pace of activity and expectations has moderated as the sector is further along in the recovery,” Lobo opined. Reflecting that optimism, Lobo recommends two dividend stocks to buy. More specifically, she favors a pair of mREITs offering dividend yields of 11% or higher, along with double-digit upside potential. Do other analysts see it the same way? We turned to the TipRanks database for answers. Here are the details. We’ll start with Seven Hills Realty Trust, a REIT focused on commercial real estate finance, particularly mortgages. The company originates and invests in first mortgage loans secured by transitional middle-market commercial properties. Seven’s loan portfolio totals $776 million across 26 floating-rate first mortgage loan commitments, with an average loan size of roughly $30 million. Seven targets what it defines as middle-market transitional CRE – commercial properties valued at up to $100 million that are undergoing redevelopment, renovation, or repositioning. These projects are intended to enhance the properties and increase their value over time. The company also benefits from a sizable management platform. Seven is externally managed by Tremont Realty Capital, a wholly owned subsidiary of alt-asset manager The RMR Group and an SEC-registered investment adviser. Through this relationship, Seven has access to nearly 900 real estate professionals operating from 30 offices nationwide. RMR oversees more than $37 billion in assets under management and brings decades of experience in commercial real estate investing, financing, and operations. Looking at the company’s first-quarter 2026 performance, Seven reported revenue of $8.34 million, narrowly missing expectations by $313,500. Earnings available for distribution, a key measure of dividend-paying capacity, came in at $0.24 per share, beating the consensus estimate by a penny. The company’s dividend was declared on April 9 and paid on May 14. The quarterly payout of $0.28 per common share annualizes to $1.12 and provides a robust forward yield of 13.2%. For UBS’s Lobo, this company offers a high-quality path for investors seeking CRE exposure. She writes of Seven: “SEVN is an externally managed mREIT focused on first-mortgage loans to middle-market transitional CRE. We believe the market undervalues its high-quality portfolio, disciplined underwriting, and durable floating-rate spread income stream. SEVN trades at a meaningful discount to origination-active CRE mREIT peers (0.59x vs. ~0.85x P/B), partly reflecting small-cap liquidity constraints and a temporary rights offering overhang. Credit remains strong across its 26-loan, $776M portfolio (zero non-

11%-Plus Dividend Yield and Double-Digit Upside: UBS Picks 2 Dividend Stocks to Buy

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