12 Ultra-High Dividend Stocks to Buy for Income Investors

In this article, we will take a look at the 12 Ultra-High Dividend Stocks to Buy for Income Investors. 

Wells Fargo Investment Institute believes investors should place a greater focus on income as they navigate an increasingly uncertain environment.

In the bank’s midyear outlook, Darrell Cronk, president of Wells Fargo Investment Institute and chief investment officer for Wealth and Investment Management, said investors must balance current opportunities with several risks that could emerge in the months ahead. Prioritizing income was one of the key investment themes he highlighted for the remainder of the year. Cronk wrote:

“Although investors are now able to lock in higher yields than we’ve seen in decades, today’s economic backdrop brings key risks that include inflation, income replacement (i.e., replacing maturing bonds with new assets paying similar interest rates), and stock market concentration with high-level uncertainty as markets digest the effects of the U.S.-Iran war and accompanying high oil prices, a new Fed chairman, and an upcoming mid-year election that may have impacts on fiscal policy, both before and after the election.”

Cronk and his team believe investors should generate income from a mix of asset classes rather than relying on a single source. Tracie McMillion, head of global asset allocation strategy, stated the following after the outlook’s release.

“Building an income-focused portfolio isn’t just about building a laddered bond portfolio anymore. It’s about building a resilient, multi-asset class income stream.”

That approach includes adding dividend-paying stocks. According to McMillion, dividend stocks can offer a measure of protection when prices rise because they have the potential to grow over time, unlike traditional fixed-income investments, which typically do not provide a hedge against inflation. She specifically favors sectors such as financials, industrials, and utilities. These sectors tend to benefit from inflationary environments and, as a group, generally offer above-market dividend yields. McMillion also noted that dividend stocks can help investors reduce their exposure to the heavy concentration of technology stocks in many portfolios. The outlook noted:

“While higher dividend-paying stocks may not always be the fastest growing names, they may be more resilient as technology-related equities enter periods of selling, as we have seen repeatedly since at least last October.”

Given this, we will take a look at some of the best dividend stocks with ultra-high yields.

Our Methodology:

For this list, we screened for dividend companies that have consistent dividend histories. From there, we picked stocks with dividend yields above 9%, as of June 21. Companies with high dividend yields often do not have the most stable dividend policies. For this list, we focused on companies that have not only offered attractive yields but have also maintained consistent dividend payments over the years. We limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Insider Monkey’s quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).

12. Northern Oil and Gas, Inc. (NYSE:NOG)

Dividend Yield as of June 21: 9.26%

On June 15, Raymond James lowered its price recommendation on Northern Oil and Gas, Inc. (NYSE:NOG) to $30 from $35. It reiterated an Outperform rating on the shares. The firm pointed to Northern Oil and Gas’ agreement to acquire a 25% non-operated stake in Parallax Energy’s Duvernay East Shale Basin assets for $259 million. The transaction is expected to add roughly 4 MBoe/d of production in fiscal 2027 and about 75,000 net acres. It also brings assets with operating costs below the company’s average, which should support profitable growth in light-oil production.

During the company’s first-quarter 2026 earnings call, Chief Financial Officer Chad Allen said management had left its 2026 guidance unchanged because commodity prices, industry conditions, and the broader economy remain unpredictable. Allen said the company was currently tracking toward the upper end of the low-activity scenario it outlined last quarter. Even so, he noted that there was still a wide range of possible outcomes for the year, making it too early to provide a more detailed forecast.

He said the company expects to tighten its guidance ranges and offer a clearer outlook by the time it reports second-quarter results. Allen also noted that natural gas realizations in the Permian Basin are likely to remain under pressure for the next several quarters. He explained that infrastructure constraints are expected to continue until new projects begin coming online in the second half of 2026.

Northern Oil and Gas, Inc. is an independent energy company that operates as a non-operator. The company acquires interests in oil and natural gas properties and focuses on their exploration, development, and production.

11. Autohome Inc. (NYSE:ATHM)

Dividend Yield as of June 21: 10.28%

On May 29, Citi lowered its price recommendation on Autohome Inc. (NYSE:ATHM) to $17 from $18. It reiterated a Neutral rating following the company’s first-quarter results. The firm said pressure from weak new vehicle sales is expected to continue into the second quarter. Still, it noted that the year-over-year decline in original equipment manufacturer advertising could be less severe than it was in the first quarter. Citi also reduced its forward earnings estimates for Autohome, citing ongoing challenges to revenue growth and a weaker-than-expected path for operating profit.

During Autohome’s Q1 2026 earnings call, Chairman and Chief Executive Officer Mr. Chi Liu highlighted the company’s growing user engagement. Citing data from QuestMobile, he said average mobile daily active users reached a record high of more than 80 million in March 2026, up 4.9% from a year earlier.

Liu also discussed the company’s efforts to strengthen its transaction platform. He noted that Autohome had introduced an online car-purchasing feature in two cities through its new retail business. The program is being tested with dealership partners as the company explores new e-commerce models for vehicle purchases. Beyond its domestic market, Autohome continued to expand internationally. Liu said YesAuto, the company’s overseas platform, had officially launched operations in Thailand. He added that Autohome’s global used-car export platform was also up and running and had received positive feedback from the market.

According to Liu, these initiatives represent the beginning of a new growth phase for the company. He said the strategy is built around a dual-circulation model that connects opportunities in both domestic and international markets.

Autohome Inc. is a holding company that primarily operates an online platform serving automobile consumers. The company provides a range of services that help users research, buy, sell, and own vehicles.

10. Conagra Brands, Inc. (NYSE:CAG)

Dividend Yield as of June 21: 10.61%

On June 18, Deutsche Bank lowered its price recommendation on Conagra Brands, Inc. (NYSE:CAG) to $12 from $14. It reiterated a Hold rating on the shares. Analyst Steve Powers reduced his fiscal 2027 estimates ahead of Conagra’s upcoming earnings report, pointing to continued cost pressures and “lackluster” consumption trends in scanned retail channels. In a research note, Powers said Conagra could use its recent CEO transition as an opportunity to reset expectations. He believes the company may rebase earnings, address concerns surrounding capital allocation by lowering its dividend payout, and increase investments aimed at driving sales growth.

Earlier, on June 5, Morgan Stanley also lowered its price goals on Conagra Brands to $13 from $15. It maintained an Equal Weight rating on the stock. Analyst Megan Alexander Clapp said investor attention is increasingly focused on fiscal 2027 outlooks as several packaged food companies prepare to report off-cycle earnings in the coming weeks. She noted that she was cutting estimates “again,” largely due to rising cost inflation that continues to weigh on the sector.

Conagra Brands, Inc. is a branded food company with operations across several business segments, including Grocery & Snacks, Refrigerated & Frozen, International, and Foodservice.

9. Starwood Property Trust, Inc. (NYSE:STWD)

Dividend Yield as of June 21: 11.50%

On June 15, Keefe Bruyette lowered its price recommendation on Starwood Property Trust, Inc. (NYSE:STWD) to $19 from $19.50. It reiterated an Outperform rating on the shares. Analyst Jade Rahmani said he has become “slightly” more cautious about the outlook for commercial real estate. In a research note, he told investors that the sector continues to face challenges, leading to a more measured view of future performance.

Earlier, on June 2, UBS resumed coverage of STWD with a Buy rating. It also set a $20 price target on the stock. The firm noted that the recovery across the commercial mortgage real estate investment trust sector has been “notably bifurcated.” According to UBS, companies that have returned to meaningful loan origination activity are trading at an average of 0.85 times book value. In contrast, firms still dealing with legacy credit issues are trading closer to 0.20 times book value. UBS believes Starwood Property deserves a premium valuation because of its strong balance sheet, diversified business model, and the scale of its platform.

Starwood Property Trust, Inc. is a real estate investment trust. The company operates through several segments, including Commercial and Residential Lending, Infrastructure Lending, Property, and Investing and Servicing.

8. Kayne Anderson BDC, Inc. (NYSE:KBDC)

Dividend Yield as of June 21: 11.58%

On June 12, Wells Fargo downgraded Kayne Anderson BDC, Inc. (NYSE:KBDC) to Equal Weight from Overweight. It also lowered its price target to $14 from $15. Analyst Finian O’Shea downgraded three business development company stocks, citing more limited upside potential. In a research note, he pointed to “richer valuations and the difficulty to deliver for those in today’s environment.” He also said Wells Fargo sees a risk that continued non-accruals and loan restructurings could pressure net operating income and dividend coverage into next year.

During the company’s first-quarter 2026 earnings call, Co-CEO and Co-Chief Investment Officer Douglas Goodwillie said net investment income came in at $0.43 per share. That provided 108% coverage of the company’s quarterly dividend of $0.40 per share. He also reported a net asset value of $16.23 per share at the end of the quarter.

Goodwillie said the board approved a regular quarterly dividend of $0.40 per share for the second quarter of 2026. He added that management remained confident in its ability to maintain the dividend throughout the year, consistent with the outlook provided during the previous earnings call.

According to Goodwillie, that confidence is supported by the strength and conservative positioning of the investment portfolio. He noted that 93% of investments were first-lien loans, while borrowers had an average leverage ratio of slightly above 4x. He also highlighted the portfolio’s weighted average yield of 10.1%. In addition, the company has limited exposure to more volatile industries, with software and technology investments representing just 2% of the portfolio.

Kayne Anderson BDC, Inc. is an externally managed, closed-end, non-diversified management investment company.

7. Annaly Capital Management, Inc. (NYSE:NLY)

Dividend Yield as of June 21: 12.83%

On June 17, BTIG lowered its price recommendation on Annaly Capital Management, Inc. (NYSE:NLY) to $24 from $25. It reiterated a Buy rating on the shares. The firm expects agency mortgage real estate investment trusts to generate an economic return of about 13% in 2026. According to BTIG, dividends should offset some modest declines in book value. The analyst also noted that the long-term outlook for the sector remains favorable, as spreads continue to be attractive compared with historical levels. That environment is expected to support both book values and dividend prospects.

During the company’s first-quarter 2026 earnings call, Chief Executive Officer David Finkelstein said Annaly delivered an economic return of 1.5%. He attributed the result to the resilience and diversification of the company’s housing finance platform despite a volatile market backdrop.

Finkelstein reported earnings available for distribution of $0.76 per share during the quarter. He also said the company raised approximately $510 million in common equity through its at-the-market program. Most of that capital was directed toward Residential Credit and mortgage servicing rights (MSR). As a result, the share of capital invested in those businesses increased from 38% to 44% by the end of the quarter.

Discussing the Agency portfolio, Finkelstein said it had a market value of $92 billion at quarter-end and represented 56% of the firm’s capital. He added that the company repositioned the portfolio by reducing exposure to higher-coupon 6% securities and increasing its allocation to 4.5% to-be-announced (TBA) securities. Finkelstein also highlighted activity in the company’s loan business. During the quarter, Annaly acquired $6.7 billion in whole loans and generated lock volume of $7.4 billion. That marked a 16% increase from the previous quarter and a 41% increase from the same period last year.

He further noted that the OBX platform completed eight securitizations totaling $4.7 billion during the quarter. After quarter-end, the platform priced four more securitizations, bringing the year-to-date total to 12 transactions with a combined value of $6.6 billion.

Annaly Capital Management, Inc. is a diversified capital manager with investment strategies focused on mortgage finance.

6. Seven Hills Realty Trust (NASDAQ:SEVN)

Dividend Yield as of June 21: 13.66%

On June 2, UBS initiated coverage of Seven Hills Realty Trust (NASDAQ:SEVN) with a Buy rating and a $10 price target. In a research note, the firm said the recovery across the commercial mortgage real estate investment trust sector has been “notably bifurcated.” According to UBS, platforms that have resumed meaningful loan origination activity are trading at an average of 0.85 times book value, while those still dealing with legacy credit issues are trading closer to 0.20 times book value. UBS believes Seven Hills “stands out” as undervalued relative to its return-on-equity outlook.

During the company’s first-quarter 2026 earnings call, President and Chief Investment Officer Lorenzini reported distributable earnings of $5.3 million, or $0.24 per share. He noted that the result came in at the upper end of the company’s guidance range.

Lorenzini also said total outstanding loan commitments reached a record of approximately $776 million. He attributed the increase to the origination of three new loans totaling $67.5 million during the quarter and said it reflected continued progress in deploying the capital raised through the company’s December rights offering.

He added that loan originations completed so far in 2026 were executed at a net interest margin of roughly 195 basis points. According to Lorenzini, this was the highest margin level the company had achieved in the past four years.

Seven Hills Realty Trust is a real estate investment trust (REIT) that originates and invests in first mortgage loans secured by middle-market transitional commercial real estate properties.

5. Mach Natural Resources LP (NYSE:MNR)

Dividend Yield as of June 21: 14.62%

On June 18, Raymond James lowered its price recommendation on Mach Natural Resources LP (NYSE:MNR) to $18 from $20. It reiterated a Strong Buy rating on the shares. The firm said the revision was driven by the sharp decline in oil prices during the week.

During the company’s first-quarter 2026 earnings call, Chief Executive Officer and Director Tom Ward said Mach Natural Resources has remained focused on acquiring assets that generate free cash flow and can be purchased at prices below the PV-10 value of their producing properties. He also noted that the company has continued to keep its reinvestment rate below 50% of operating cash flow, a strategy aimed at maximizing shareholder distributions.

Ward said the company began drilling for oil in the Oswego formation in Kingfisher County, Oklahoma, on May 1 with the deployment of its first rig. He explained that the move effectively adds three oil-focused rigs by postponing the deep Anadarko dry gas drilling program.

He also discussed the impact of the IKAV and Sabinal acquisitions completed in September. According to Ward, those transactions increased the company’s leverage ratio to about 1.3x. Ward added that management has paused its acquisition strategy for now. He said the company would only consider future acquisitions if they are accretive to cash available for distribution and help lower debt levels through the use of equity financing.

Mach Natural Resources LP is an independent upstream oil and gas company focused on the acquisition, development, and production of oil, natural gas, and natural gas liquids (NGL) reserves.

4. Dynex Capital, Inc. (NYSE:DX)

Dividend Yield as of June 21: 15.62%

On June 17, BTIG lowered its price recommendation on Dynex Capital, Inc. (NYSE:DX) to $14.50 from $16. It maintained a Buy rating on the shares. The firm expects agency mortgage real estate investment trusts to generate an economic return of about 13% in 2026. According to BTIG, dividends should help offset modest declines in book value. The analyst also said the long-term backdrop for the sector remains supportive, with spreads still attractive relative to historical levels. That environment is expected to support both book values and dividend outlooks.

During the company’s first-quarter 2026 earnings call, Chief Financial Officer Michael Sartori reported book value per share of $12.60 at quarter-end. He said the company generated a negative economic return of 2.5% during the quarter. The result reflected common dividends of $0.51 per share and a decline in book value of $0.85 per share.

Sartori also noted that leverage stood at 8.6 times total equity at the end of the quarter. He added that Dynex maintained a strong liquidity position, with $1.3 billion in cash and unencumbered securities. That amount represented more than 46% of total equity.

Chief Investment Officer Terrence Connelly said spreads on Agency mortgage-backed securities (MBS) relative to seven-year interest rate swaps had started to tighten again. He added that management believes spreads could move back toward 120 basis points, with the potential for a longer-term equilibrium level closer to 100 basis points.

Dynex Capital, Inc. is a financial services company and an internally managed mortgage real estate investment trust (REIT). The company invests primarily in mortgage-backed securities and finances those investments mainly through repurchase agreements.

3. Hafnia Limited (NYSE:HAFN)

Dividend Yield as of June 21: 15.92%

On May 28, Pareto analyst Eirik Haavaldsen downgraded Hafnia Limited (NYSE:HAFN) to Hold from Buy. The analyst also assigned a NOK 79 price target to the stock.

During Hafnia’s first-quarter 2026 earnings call, Chief Executive Officer Mikael Skov said the quarter was shaped by an unprecedented geopolitical disruption in global oil markets. He explained that the closure of the Strait of Hormuz significantly changed trade routes for both crude oil and refined products.

Skov said the situation became even more challenging due to attacks on Middle Eastern refineries, refinery production cuts, and export restrictions in parts of Asia. According to him, these events disrupted supply chains and trade flows across several regions.

He noted that the loss of an estimated 12.8 million barrels per day of global oil supply forced a rapid reshaping of crude and refined product transportation patterns. Skov added that the impact was partly offset by increased production from the Atlantic Basin and the International Energy Agency’s coordinated release of up to 400 million barrels from strategic reserves to help ease supply shortages.

Despite the difficult operating environment, Skov said Hafnia delivered another quarter of strong financial results. The company reported net profit of $179.7 million in the first quarter of 2026, including $32.5 million in gains from vessel sales. He also noted that Hafnia’s fee-based business contributed $7.8 million during the quarter.

Looking ahead, Skov said drydocking activity is expected to continue through the rest of 2026. The company currently expects around 300 off-hire days in the second quarter.

Hafnia Limited is a tanker company whose principal activity is investment holding. The company operates across several segments, including Long Range II (LR2), Long Range I (LR1), Medium Range (MR), Handy, and Specialised vessels.

2. Mechanics Bancorp (NASDAQ:MCHB)

Dividend Yield as of June 21: 19.10%

On May 29, Raymond James initiated coverage of Mechanics Bancorp (NASDAQ:MCHB) with an Outperform rating and a $17 price target. The firm said the West Coast regional bank has relied heavily on mergers and acquisitions as a growth driver. According to the analyst, the recently completed HomeStreet transaction is already proving to be a highly accretive, “home run” deal. Raymond James also views Mechanics Bancorp as a potential acquisition target over time, citing the strength of its platform and the scarcity value of a bank of its size on the West Coast.

During the company’s first-quarter 2026 earnings call, President and Chief Executive Officer C. Johnson reported net income of $44.1 million. He added that fully diluted earnings per share were $0.19. Johnson noted that the company recorded a $6.5 million provision tied entirely to qualitative Current Expected Credit Losses (CECL) factors related to geopolitical uncertainty stemming from the conflict involving Iran. He emphasized that the provision was not driven by any specific deterioration in the company’s loan portfolio.

He also said the company incurred slightly less than $5 million in merger-related expenses during the quarter. In addition, Johnson noted that the integration of HomeStreet continued to progress smoothly. All legacy HomeStreet customers were migrated to the company’s core banking platform during the final week of March, marking an important milestone in the integration process.

Mechanics Bancorp is the financial holding company for Mechanics Bank, a full-service banking institution. The bank offers a broad range of products and services across consumer and business banking, commercial lending, cash management, private banking, wealth management, and trust services.

1. Arbor Realty Trust, Inc. (NYSE:ABR)

Dividend Yield as of June 21: 20.58%

On June 15, Keefe Bruyette analyst Jade Rahmani cut the firm’s price target on Arbor Realty Trust, Inc. (NYSE:ABR) to $5.50 from $6.50 and maintained an Underperform rating. In a research note, the analyst said the firm is becoming “slightly” more cautious about the commercial real estate outlook.

A month earlier, on May 14, Citizens lowered its price recommendation on Arbor Realty to $8.50 from $9.50. It reiterated an Outperform rating on the stock. The analyst noted that Arbor is continuing to make progress in working through nonperforming loans and selling REO assets. That said, higher interest rates linked to the conflict in the Middle East have slowed the resolution process and extended the expected timeline. Citizens also argued that the stock’s 28% decline since Arbor reported its first-quarter results on May 8 appears excessive.

Arbor Realty Trust, Inc. operates as a real estate investment trust and direct lender. The company originates and services loans for multifamily properties, single-family rental (SFR) portfolios, and other commercial real estate assets.

READ NEXT: Dividend Stock Portfolio: Top 10 Stocks to Buy According to Reddit and Top 12 Dividend Stocks to Buy According to Billionaire Cliff Asness

Follow Insider Monkey on Google News.