When markets get choppy and uncertainty creeps in, investors often seek refuge in dividend-paying stocks. The appeal is straightforward: these companies typically generate strong free cash flow and return capital to shareholders through consistent dividend payments. For those hunting yield in the industrial sector, three names are standing out with dividend yields exceeding 5%.
Here's what some of Wall Street's most accurate analysts are saying about these income generators, along with their track records for getting calls right.
Robert Half: Nearly 9% Yield After Earnings Disappointment
Robert Half Inc. (RHI) is currently offering the highest dividend yield of the three at 8.69%. But there's a reason that yield has climbed so high: the stock price has taken a beating.
Barclays analyst Manav Patnaik, who maintains a 73% accuracy rate, kept his Equal-Weight rating on the stock but slashed his price target from $45 down to $36 on October 23, 2025. That same day, BMO Capital analyst Jeffrey Silber, working with a 70% accuracy rate, also maintained a Market Perform rating while cutting his target from $36 to $31.
The catalyst for these downgrades? Robert Half posted weaker-than-expected quarterly results on October 22. When a company misses earnings expectations, analysts typically reassess their projections, and that's exactly what happened here. The silver lining for income investors is that high dividend yield, though it's worth asking whether that payout is sustainable if business conditions continue to deteriorate.
Karat Packaging: Nearly 8% Yield With Mixed Signals
Karat Packaging Inc. (KRT) offers a 7.98% dividend yield, making it the second-highest yielder in this group. The analyst community is sending mixed messages on this one.
B of A Securities analyst George Staphos made a significant move on November 17, 2025, downgrading the stock from Buy all the way to Underperform and lowering his price target from $27 to $22. Staphos has a 53% accuracy rate, which means his calls are right about half the time, but the magnitude of the downgrade from Buy to Underperform suggests serious concerns about the company's prospects.
On the flip side, Truist Securities analyst Jake Bartlett, who boasts a 66% accuracy rate, maintained a Hold rating while actually raising his price target from $28 to $31 back on May 12, 2025. That was before Karat Packaging reported disappointing third-quarter earnings on November 6, though, so Bartlett's bullish outlook may need updating.
The contrasting views highlight an important reality: even experienced analysts can disagree significantly about a company's direction. Investors need to do their own homework rather than blindly following any single analyst.
Kforce: The "Lowest" Yield at Just Over 5%
Kforce Inc. (KFRC) rounds out the trio with a 5.05% dividend yield. That's the lowest of the three, but still considerably higher than what you'd get from the broader market or a savings account.
UBS analyst Joshua Chan, with a 55% accuracy rate, maintained a Neutral rating on November 5, 2025, while reducing his price target from $40 to $34.50. Meanwhile, Truist Securities analyst Tobey Sommer, whose calls are accurate 69% of the time, kept a Hold rating but slashed his price target from $46 to $35 on October 13, 2025.
Interestingly, Kforce actually reported better-than-expected third-quarter results on November 3. So why the price target cuts? Sometimes the market's expectations get ahead of reality, or analysts see storm clouds on the horizon that haven't materialized in the numbers yet. The fact that both analysts maintained neutral ratings despite the earnings beat suggests they're taking a wait-and-see approach.
What These Ratings Really Mean
It's worth noting that analyst accuracy rates in the 50% to 70% range might not sound particularly impressive, but they actually represent solid track records in a business where predicting stock movements is notoriously difficult. An analyst who's right 70% of the time is considerably better than a coin flip.
The prevalence of Hold, Neutral, and Market Perform ratings across these three stocks tells a story. Analysts aren't rushing to recommend these as strong buys, despite the attractive dividend yields. That caution likely reflects concerns about the broader economic environment and whether these companies can maintain their dividend payments if conditions worsen.
For dividend investors, the key question is always sustainability. A high yield doesn't mean much if the company has to cut its dividend. The fact that these are established industrial companies with histories of cash generation is encouraging, but the recent earnings misses at Robert Half and Karat Packaging raise legitimate questions about near-term business prospects.
Anyone considering these stocks should look beyond just the yield percentage and examine the underlying fundamentals, payout ratios, and whether the business trends support continued dividend payments. An 8% yield is only attractive if you actually receive it.