Whether deserved or not, dividend stocks have a reputation for being somewhat boring—sturdy and dependable, but in low-growth industries or comprising companies that are well beyond their days of rapid share price gains. Though dividend stocks are not necessarily safe in all cases, they have a reputation for being a strong defensive play.

On the other hand, Momentum stocks often don't pay dividends because they are in a high-growth stage of development when companies typically reinvest capital into the business itself to fuel further expansion. Thus, when a company has an impressive dividend yield and a recent history of upward price movement, it's a win-win for investors.

Three companies with strong year-to-date share price momentum also happen to have compelling dividend profiles and, in two cases, hearty recommendations from Wall Street analysts. These companies may offer the best of both the dividend and momentum stock worlds.

Greystone's Savvy Approach to Mortgage Revenue Bonds Has Protected Income

Greystone Housing Impact Investors LP (NYSE: GHI) invests in mortgage revenue bonds that are used to finance multifamily, senior, and student housing. With the turbulence in interest rates in recent years, Greystone proactively adopted a hedging strategy in 2022 that allowed it to be a net receiver on its interest rate swap positions in both 2023 and 2024. This has helped stabilize the company's cash flows despite ongoing uncertainty.

Greystone also has a new construction lending joint venture with BlackRock Impact Opportunities. This partnership led to the closing of two deals in the latest quarter which will likely continue to grow in 2025. With this venture, Greystone can fill a gap left by commercial banks that are unable to provide affordable construction lending opportunities.

Greystone shares declined throughout much of 2024 but have partially rebounded so far in 2025. Year-to-date, as of February 28, the firm's stock is up 17.4%, though it remains down almost a quarter on a 12-month basis. What's more, the company paid a dividend of 37 cents per share each quarter last year and has a dividend yield of an impressive 11.9% as of February 28. The hedging strategy may be key to maintaining this dividend in the quarters to come, as Greystone also has a dividend payout ratio of 192%.

Impressive Yield in the Energy Sector, But Beware the Payout Ratio

Energy stocks experienced significant volatility at the end of 2024 and the beginning of the new year. However, oil and natural gas development firm TXO Partners LP (NYSE: TXO) managed to escape the worst of this. Although TXO shares fell fairly consistently from a 52-week high in May 2024 through December, they have bounced back in recent weeks. The stock price is up about a quarter since reaching a low point in mid-December.

With a dividend yield of 11.9%, TXO Partners may be attractive to investors looking for steady passive income. However, investors should keep a close eye on the firm's dividend payout ratio—as of February 28, at -39%—which may be an indicator of difficulties maintaining the current payout plan going forward.

Shipping Volatility Doesn't Dampen Frontline's Growth and Dividend Prospects

The oil shipping firm Frontline plc (NYSE: FRO) has been subjected to volatility in the energy and global shipping business in recent quarters. This has caused shares to fall by almost 29% as of February 28, although, like the companies above, Frontline has bounced back by more than 9% year-to-date.

Analysts have sent mixed signals on Frontline in recent months. In December, both Jefferies and Kepler Capital revised their assessments; Jefferies lowered its price target by $6 to $20 per share, and Kepler downgraded FRO shares to Hold from Buy.

However, the company still enjoys an overall Buy rating based on five analyst opinions, and its consensus price target of $24.46 suggests more than 52% upside potential. In addition to that, a healthy dividend yield and payout ratio of 8.5% and 55.5%, respectively, and FRO shares look enticing to both momentum and dividend investors.

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