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Investors love dividends. After all, there are few things in life better than getting paid. And in a historically-volatile 2022, dividends have become a hot topic. Dividends help alleviate drawdowns in other positions, provide a passive income stream, and can provide maximum returns through dividend reinvestment.

Five top-ranked stocks with an annual dividend yield currently above 5% – Ares Capital Corp. (ARCC - Free Report), AT&T (T - Free Report), CalMaine Foods (CALM - Free Report), Horizon Technology Finance Corp. (HRZN - Free Report), and CONSOL Energy (CEIX - Free Report) – could all be considerations for those seeking an income stream.

Below is a chart illustrating the year-to-date performance of all five stocks, with the S&P 500 blended in as a benchmark.

Image Source: Zacks Investment Research

Let’s take a closer look at each one of these dividend opportunities.

Ares Capital Corp.

Ares Capital Corporation is a specialty finance company offering customized financing solutions, ranging from senior-debt instruments to equity capital, focusing on senior secured debt. Analysts have pushed their bottom-line outlook notably higher over the last several months, helping push the stock into a Zacks Rank #2 (Buy).

Image Source: Zacks Investment Research

The company’s annual dividend currently yields 8.7%, notably higher than the Zacks Finance sector average. Further, the company carries a respectable 2% five-year annualized dividend growth rate.

Image Source: Zacks Investment Research

AT&T

AT&T is North America's second-largest wireless service provider and one of the world’s leading communications service carriers. The company sports a Zacks Rank #2 (Buy). The company’s earnings outlook has turned bright over the last several months.

Image Source: Zacks Investment Research

T’s annual dividend currently yields a solid 5.8% paired with a sustainable payout ratio sitting at 39% of its earnings. The current yield is well above that of its Zacks Computer and Technology sector average.

Image Source: Zacks Investment Research

CalMaine Foods

Cal-Maine Foods is primarily engaged in producing, grading, packing, and selling fresh shell eggs, including conventional, cage-free, organic, and nutritionally-enhanced eggs. CALM boasts a Zacks Rank #1 (Strong Buy). Analysts have substantially upped their bottom-line outlook for the company’s current and next fiscal year.

Image Source: Zacks Investment Research

CALM’s annual dividend currently yields 6%, visibly higher than its Zacks Basic Materials sector average. Further, the company’s payout ratio sits at 53% of its earnings.

Image Source: Zacks Investment Research

Horizon Technology Finance Corp.

Horizon Technology Finance makes secured loans to development-stage companies in the technology, life science, healthcare information and services, and cleantech industries. Analysts have been bullish across all timeframes over the last several months, pushing HRZN into the highly-coveted Zacks Rank #1 (Strong Buy).

Image Source: Zacks Investment Research

HRZN’s annual dividend currently yields a steep 9.3%, crushing the Zacks Finance sector average of 2.3%.

Image Source: Zacks Investment Research

CONSOL Energy

CONSOL Energy Inc. is a producer and exporter of high-Btu bituminous thermal and crossover metallurgical coal. Like the stocks above, analysts have taken a bullish stance on the company’s earnings outlook as of late, pushing the stock into a Zacks Rank #1 (Strong Buy).

Image Source: Zacks Investment Research

The company’s annual dividend sits at 6.1%, well above that of its Zacks Oils and Energy sector average of an already steep 4.5%.

Image Source: Zacks Investment Research

Bottom Line

Dividends are a massive perk for any investor, providing a valuable level of flexibility by cushioning the impact of drawdowns in other positions and providing a passive income stream.

In 2022, many investors have flocked to dividend-paying stocks, undoubtedly in an attempt to shield themselves from volatility.

For those seeking stocks currently paying investors handsomely, all five stocks – Ares Capital Corp. (ARCC - Free Report), AT&T (T - Free Report), CalMaine Foods (CALM - Free Report), Horizon Technology Finance Corp. (HRZN - Free Report), and CONSOL Energy (CEIX - Free Report) – could all be considerations.

And for the cherry on top, all five have witnessed positive earnings estimate revisions over the last several months.

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