10 Extreme Dividend Stocks With Upside Potential

2. SFL Corporation Ltd. (NYSE:SFL)

Upside Potential as of August 14: 38.9%

Dividend Yield as of August 14: 9.3%

With a projected upside potential of 39%, SFL Corporation Ltd. (NYSE:SFL) ranks second on our list of the best dividend stocks. The Bermuda-based ship-owning and chartering company owns and manages a fleet of 81 vessels, which includes tankers, bulk carriers, container ships, car carriers, and energy assets.

SFL Corporation Ltd. (NYSE:SFL) reported strong business momentum in the second quarter of 2024. It is going ahead with its execution of the growth strategy, having added over $2 billion to its charter backlog this year through a combination of vessel acquisitions and charter extensions on existing vessels. The charter backlog now totals nearly $5 billion. Over the past decade, the company has developed a high-quality operational platform, allowing it to secure repeat transactions with key customers. Simultaneously, it has diversified its asset mix and expanded its customer base. This evolution has refined the business model from solely being a financing provider to facilitating maritime infrastructure for logistics companies.

SFL Corporation Ltd. (NYSE:SFL) is a strong dividend payer with solid cash reserves. At the end of Q2 2024, the company had over $186 million available in cash and cash equivalents. The company has been making regular dividend payments to shareholders for the past 82 consecutive quarters. Since the inception of its dividend policy in 2004, the accumulated dividends have grown from $0.6 billion to $2.6 billion at the end of 2023. It currently pays a quarterly dividend of $0.27 per share for a dividend yield of 9.3%, as of August 14.