A falling share price doesn't always mean a broken investment. Sometimes, it simply means investors are being offered the same business at a much cheaper price. That distinction is what makes market pullbacks interesting – particularly when a beaten-down stock continues to put cash directly into shareholders' pockets.
That brings two investing strategies together. The first is buying the dip: looking past a weak chart to determine whether the business still has enough going for it to support a recovery. The second is dividend investing, where part of the return arrives without investors having to wait for the share price to cooperate.
Combine the two, and the numbers start working in investors' favor. A lower stock price can push the dividend yield higher, meaning investors who buy after the drop may lock in a larger income stream while gaining exposure to any eventual rebound. The catch, of course, is separating temporary weakness from a stock that has dropped for good reason.
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With this in mind, we used the TipRanks database to find two beaten-down stocks that have each recently received a Buy rating from an analyst and now offer dividend yields of at least 8%. Let's take a closer look.
Global Net Lease ( GNL )
We'll start with a REIT, a real estate investment trust. These companies are a natural to talk about when we talk about dividends, because tax regulations encourage them to pay out a certain percentage of profits directly to investors – and dividends make a convenient mode of compliance. The REIT we're looking at here, Global Net Lease, deals primarily with net lease agreements in the commercial real estate sector.
Net leases are structured to offer both owners and tenants unique advantages. Unlike traditional leases, in which the property owner retains various responsibilities for upkeep, in net leases the owner accepts a lower rent while the tenant agrees to take on recurring costs such as insurance, maintenance, and taxes. These agreements relieve the owner of those ancillary costs and responsibilities, allowing a focus on property ownership and acquisition, and the tenant, in return for taking them on, frequently gains rights to modify or build on the property.
A look at Global Net Lease's portfolio shows that the company has extensive holdings across the US, with its largest footprint in the Midwest region. The company assembled the portfolio from the start to accommodate commercial enterprises, and as of June 30 this year had 798 properties totaling $39.7 million square feet of leasable space. The company can rest easy on a 97% occupancy rate – but just as important, the forward-looking metrics are also strong. Of the current leases, the weighted average remaining lease term is 5.7 years, and 87% of the leases include contractual rent increases.
Earlier this month, Global Net Lease made an important move to expand its holdings when it completed its $535 million all-stock acquisition of Modiv Industrial. Prior to the acquisition, Modiv was a publicly traded REIT with a focus on industrial manufacturing properties. That portfolio is now being folded into Global Net Lease's operations.
The company's last earnings report covered 2Q26. In it, Global Net Lease reported revenue of $112.5 million. This figure was down from the $124.9 million revenue reported in 2Q25, but it did beat the forecast by nearly $2.8 million. At the bottom line, GNL reported a core FFO of 15 cents per diluted common share. This was up from 3 cents one year previously, and beat expectations by a penny. The adjusted FFO, at 22 cents per share, was down from 2Q25's 24-cent figure, although it was 2 cents better than had been anticipated.
On the dividend, Global Net Lease last sent out the payment on July 17. The quarterly payment was set at $0.19 per common share, and the $0.76 annualized payment gives a forward yield of 8.4%. The dividend is fully covered by the AFFO.
Shares in GNL are down 6% over the past six months, due to a combination of factors that are informative on a closer view. To start with, the company has been intentionally reducing its portfolio holdings by selling off certain properties. That reduction allowed the company to pare back its debt, but it also cut into revenues and profits – the adjusted Funds from Operations (AFFO, a key metric for REITs) was down year-over-year in the last earnings report. In addition, more recently, the dilutive effect of the all-stock Modiv transaction has impacted the share price.
For BMO analyst John Kim, the Modiv transaction was a key point. Kim notes that the acquisition is logical as part of GNL's reshaping of its portfolio, while improving the company's growth profile and portfolio quality.
"GNL's $535M Modiv Industrial acquisition importantly raised the company's growth profile — it is +4% accretive to AFFOps inclusive of ~$6M of synergies — while enhancing GNL's portfolio quality… We now project +3.5% AFFOps growth in 2027 (vs. peers +3.1%), from +2.1% previously and -15.9% CAGR 2022-26… Modiv has a long lease-term, manufacturing-focused industrial portfolio with attractive annual escalators (+2.4%). GNL has also further reduced ties to AR Global. Despite these improvements, GNL's shares have declined, underperforming the RMZ Index. We believe GNL's valuation discount to peers is too wide," Kim opined.
What it all comes down to for Kim is an Outperform (i.e., Buy) rating, along with a $10 price target that indicates the stock may gain about 8.5%. Add in the dividend yield, and the total one-year return here may reach ~17%. (To watch Kim's track record, click here )
Overall, there are 4 recent analyst reviews on file for Global Net Lease, and the 3-to-1 breakdown, favoring Buy over Hold, gives the stock its Strong Buy consensus rating. The shares are currently priced at $9.22, and the $11 average price target, higher than the BMO view, suggests an upside of 19% by this time next year. (See GNL stock forecast )
Nuveen Churchill Direct Lending ( NCDL )
The next stock we'll look at, Nuveen Churchill, is a BDC, or business development company. These companies provide credit and financial services to the small- and mid-sized companies that play an important role in driving the US economy but also sometimes have difficulty in accessing those financial services from the traditional banking system.
Nuveen Churchill focuses its investments mainly on making senior secured loans to middle-market, private equity-owned companies in the US. Nuveen Churchill's objective is to use its current income to generate attractive risk-adjusted returns for its shareholders.
On the operational end, the company works through a subsidiary, Churchill. This is the parent company's investment specialist and provides customized financing solutions in the private equity sector. Churchill had $66 billion in committed capital under management as of this past spring, and has investments with approximately 300 private equity firms. Dipping into Nuveen Churchill's portfolio statistics, we find that the company's two largest investment areas are Healthcare & Pharmaceuticals (18.8% of the total) and Services: Business (16% of the total). Some 90% of the investments are first lien term loans, and more than 94% are floating rate.
The dividend is a key attractive feature for many investors, and Nuveen pays out $0.36 per common share per quarter. At this rate, the dividend annualizes to $1.44 and gives a forward yield of 11.5%. Nuveen Churchill last declared the dividend on August 6, for a payout on October 27. The company has a history of declaring a special dividend along with the regular payment, and the current special dividend is 2 cents per share.
In its 2Q26 release, Nuveen Churchill reported top line revenue of $44.3 million – listed as investment income – along with a net investment income per share of $0.41. The top line was down over 16% year-over-year, and missed the forecast by almost $2.4 million. The net investment income (NII) was 2 cents per share better than had been expected.
We're talking about buying the dip, and NCDL stock is down about 9% over the past half year. Pressures on the stock include a lower portfolio yield, caused in part by the decline in interest rates over the past year, as well as revenues that have missed expectations.
Yet, Truist's 5-star analyst Arren Cyganovich is upbeat and makes no attempt to hide it: "We continue to feel good about NCDL's platform, its low exposure to software portfolio company loans, and its institutional investor base. We see shares as overly discounted given their credit performance and relatively low software portfolio company exposure."
Cyganovich is optimistic on this stock, so it should come as no surprise that he rates NCDL as a Buy. His rating backs up the $16 price target, which indicates a potential gain of ~30% for the shares by this time next year. Accounting for the dividend yield, and this stock's total one-year return may hit 41%. (To watch Cyganovich's track record, click here )
That's the bullish view on this BDC. The analyst consensus on Nuveen Churchill, however, is a Hold (i.e., Neutral), based on 5 recent analyst reviews that include 2 Buys, 2 Holds, and 1 Sell. The stock's current trading price of $12.32 and its average target price of $14.05 imply a 14% upside in the next 12 months. (See NCDL stock forecast )
Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
