Seeking 10% Dividend Yield? Wells Fargo Suggests 2 Dividend Stocks Worth Buying

After a strong run this year, the S&P 500 has been moving sideways over the past three weeks as investors grapple with stretched valuations, mixed economic data, and continued uncertainty around the Federal Reserve's next steps.

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Against that backdrop, it's no surprise that in a more volatile environment like the one we're seeing today, dividend stocks start to look appealing again. Their steady income can take the edge off market swings and offer some protection when things get bumpy.

That's where Wells Fargo's Donald Fandetti comes in. The 5-star analyst is recommending two dividend names with yields reaching 10% – stocks that can help investors handle the near-term ups and downs while still offering meaningful total-return potential.

We've used the TipRanks database to dig into the Wells Fargo dividend picks and see what else makes them so compelling. Let's dive in.

TPG RE Finance Trust (TRTX)

The first high-yield dividend stock we're looking at here, TPG RE Finance, is a real estate investment trust with a focus on commercial real estate. The company works in primary and in select secondary commercial markets in the US, as a balance sheet lender originating loans of $50 million or more for first mortgages.

TPG's portfolio currently holds some $3.7 billion in assets. Of the company's investments, 51.6% are in multifamily dwellings, 15.6% are in office space, and 12.1% are in industrial sites. The company operates primarily in the West, Southeast, and East regions of the US, with its largest footprints in the states of California, Texas, and Florida, and significant operations in the Mid-Atlantic region.

TPG RE Finance operates as the commercial real estate investment arm of the global alternative asset firm TPG. The umbrella company, which has a total of $286 billion in AUM, possesses a global platform and knowledge base that are available as resources for the REIT, which benefits from access to its parent firm.

Turning to the last quarterly report for TRTX, released last month for 3Q25, we see that the real estate investor reported a GAAP net income of $18.4 million. This came to 23 cents per common share, and beat the forecast by 3 cents per share. The company's distributable earnings, of $19.9 million, boiled down to 25 cents per share and met analyst expectations. The distributable earnings are of interest to dividend investors, as they directly support the dividend payments.

This REIT last declared its dividend on September 12 for 24 cents per common share, with the payment made on October 24. The dividend annualizes to 96 cents per common share and gives a robust forward yield of 10.73%.

Wells Fargo sees room for that strength to continue. Turning to the firm's view, 5-star analyst Donald Fandetti highlights TRTX's consistency and its potential to benefit from an improving interest-rate environment.

"Another steady quarter from TRTX from an origination and credit perspective. We expect Fed cuts to be supportive to CRE credit and sentiment. We see TRTX shares trading back towards book value given stable credit and stronger origination volume," Fandetti noted.

To this end, Fandetti rates TRTX shares as Overweight (i.e. Buy), and his $11 price target indicates room for a ~23% upside in the coming year. Together with the dividend yield, this stock's total one-year return may run ~34%. (To watch Fandetti's track record, click here)

Overall, TRTX carries a Moderate Buy consensus rating based on 6 analyst reviews: 3 Buys, 2 Holds, and 1 Sell. At a current price of $8.95, the stock's $10.10 average price target points to a ~13% upside from current levels. (See TRTX stock forecast)