In this article, we will take a look at the Top 10 Dividend Stocks with 10%+ Yield.
High dividend yields have always divided opinion among analysts and investors. Analysts usually approach extremely high yields with caution, while many investors see them as an opportunity to lock in higher income.
There is a reason for that caution. An unusually high dividend yield can sometimes point to financial stress, and several companies with eye-catching yields have eventually reduced or suspended their dividend payments. Still, a high yield on its own does not define a company’s financial health. In fact, many studies have shown that high-yield stocks have generated solid returns over the years.
One such report from Newton Investment Management found that high-yield dividend stocks outperformed the broader market during periods of high inflation between 1940 and 2021. The study also showed that portfolios made up of high-yield dividend stocks delivered stronger value-weighted returns than portfolios focused on low-yield or non-dividend-paying stocks.
According to the report, high-yield portfolios outperformed low-yield portfolios by 199 basis points and portfolios with no dividend-paying stocks by 330 basis points. Those findings are meaningful, though they do not explain the market environment behind the results. They offer a broader view of how high-yield stocks have performed over time.
Analysts have also looked closely at how dividend stocks perform during periods of market volatility, when investors tend to place greater value on reliable income. Because of that, they generally recommend considering high-yield stocks only if the companies also have a long and consistent record of growing their dividends.
Given this, we will take a look at some of the best dividend stocks with dividend yields above 10%.
Image by Steve Buissinne from Pixabay
Our Methodology:
For this list, we screened for dividend companies that have yields above 10%, as of June 27. Companies with high dividend yields often do not have the most stable dividend policies. 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).
10. Blue Owl Capital Inc. (NYSE:OWL)
Dividend Yield as of June 27: 10.74%
On June 25, Bloomberg reported that Blue Owl Capital Inc. (NYSE:OWL) is in advanced talks to acquire a minority stake in the NBA’s Cleveland Cavaliers, citing people familiar with the matter.
According to the report, the investment would be made through Blue Owl’s Dyal HomeCourt Partners fund. The people, who were not authorized to speak publicly about the discussions, said the fund already holds stakes in the Atlanta Hawks, Sacramento Kings, and Minnesota Timberwolves.
A person familiar with the situation said the stake is expected to be between 5% and 10%. Sportico values the Cavaliers at $4.86 billion, making the franchise the 16th most valuable team in the NBA. Blue Owl and the Cavaliers declined to comment.
Blue Owl Capital Inc. (NYSE:OWL) is an alternative asset management company. It deploys private capital across its Credit, Real Assets, and GP Strategic Capital platforms on behalf of institutional and private wealth clients.
9. Blackstone Mortgage Trust, Inc. (NYSE:BXMT)
Dividend Yield as of June 27: 10.79%
On June 26, Keefe Bruyette lowered the firm’s price recommendation on Blackstone Mortgage Trust, Inc. (NYSE:BXMT) to $20 from $20.50. It reiterated an Outperform rating on the shares. The move followed media reports that the company’s loan tied to the Chicago office tower One South Wacker had gone into maturity default. In a research note, analyst Jade Rahmani said it reduced its estimates to account for higher expected losses on the loan.
Earlier, on June 15, Keefe Bruyette had lowered its price goal on BXMT to $20.50 from $21. It maintained an Outperform rating. The firm said it had become “slightly” more cautious about the outlook for the commercial real estate market, according to the analyst’s research note.
Blackstone Mortgage Trust, Inc. (NYSE:BXMT) is a real estate finance company that originates, acquires, and manages senior loans and other debt or credit-oriented investments backed by, or related to, commercial real estate across North America, Europe, and Australia.
