Investors are constantly searching for an edge — some clue that separates tomorrow’s winners from the rest of the market. One signal can be useful, but when multiple indicators all point in the same direction, the case becomes much harder to ignore. That’s exactly what the TipRanks Smart Score is designed to identify: stocks that excel across a broad range of factors and stand out as potential outperformers.

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The Smart Score analyzes vast amounts of market data generated by millions of daily transactions and compares every publicly traded company against a set of factors historically associated with strong future returns. The result is a simple 1-to-10 rating system, with only the highest-ranked stocks earning the coveted “Perfect 10” score.

Of course, a top-rated stock becomes even more compelling when it also pays investors generously. High-yield dividend stocks already offer an attractive combination of income and stability, but when those same names also receive a Perfect 10 Smart Score, it suggests that several powerful signals are working together. For income-focused investors, that’s a combination worth paying attention to.

With that in mind, let’s take a look at two high-yield dividend stocks that have earned a Perfect 10 Smart Score. Using data from the TipRanks platform, we examined the latest metrics and what Wall Street analysts currently have to say about each name.

Ellington Financial (EFC)

We will start our look at ‘Perfect 10’ stocks with high-yield dividends in the world of REITs. These companies, real estate investment trusts, are well-known among dividend investors as champions. REITs are required to return a high percentage of their profits directly to shareholders – they receive favorable tax treatment – and dividends make an easy mode of compliance. Ellington Financial, the first stock on today’s radar, invests in mortgage loans and securities, and along with originating and/or acquiring loans, the company also invests in strategic debt and equity. Ellington’s strategy includes investments in residential and commercial MBSs, and also the securitization of reverse mortgage loans.

The company is externally managed by the larger Ellington Management Group, a major asset manager. The management firm has over $22 billion in AUM, and provides solid backing for the REIT.

Ellington Financial’s portfolio is designed to bring returns for stockholders, and is based on an opportunistic strategy. The company targets investments that are remunerative, and uses diversification to provide a hedge against hard times. The overall approach has built up a portfolio in which the various strengths of the investments complement each other.

That’s been a successful approach. In 1Q26, Ellington generated a total of $149.5 million in investment income, edging past the forecast by $41,000, and saw adjusted distributable earnings of $66.5 million, or $0.55 per common share. That final figure, which was 6 cents per share better than had been expected, is of key importance for dividend investors – as it directly supports the company’s dividend.

The dividend is worth a second look. Ellington pays it out monthly, rather than quarterly – but that can endear it to investors seeking an income stream for regular use, as most individuals’ expenses are paid monthly. Ellington last declared its dividend on June 8, at a monthly rate of 13 cents per common share, to be paid out on July 31. That monthly dividend annualizes to $1.56 per share, and gives a forward yield of 11.5%. Ellington has been paying out dividends regularly since 2010, and switched from quarterly to the current monthly format in 2019.

Maxim analyst Michael Diana sees several reasons to be optimistic about the stock, including solid dividend coverage, a strong track record of preserving book value, and the potential for attractive total returns.

Diana’s noted $15 price target currently implies a 12-month share appreciation of ~12%; when the 11.5% dividend yield is added in, the combined 22.3% one-year upside is slightly higher than his target. Diana rates EFC shares as a Buy. (To watch Diana’s track record, click here)

“We maintain our $0.39 quarterly dividend estimates for 2026 and introduce 2027 dividend estimates at the same level… EFC is guiding to quarterly core earnings of $0.45, implying over-coverage of the dividend. Our 2Q26 EPS estimate is $0.32, as management expects a $0.13 unrealized markdown of its liabilities… In our view, EFC has a best-in-class track record of preserving BV, especially during downturns and dislocations such as the 2008–2009 financial crisis, the so called ‘Taper Tantrum’ in 2013, and the pandemic… Over the next four quarters, we expect: 1) a dividend yield of 11.5%; and 2) stock price appreciation of 10.5% (to our $15 price target), which would result in a 12-month total return of about 22%,” Diana noted.

With the potential for a 22% total return over the next year, Diana rates EFC shares a Buy (To watch Diana’s track record, click here)

Overall, this REIT has a Moderate Buy consensus rating on the Street, based on an even split of Buys and Holds among the four recent analyst reviews. The shares are trading for $13.44, and the $15 average price target matches the Maxim view. (See EFC stock forecast)