What is a dividend yield and why does it matter?

Dividend yield is the annual dividend payment divided by the stock's current price, expressed as a percentage. A high yield means you're getting more dividend income relative to what you paid for the stock. For example, if a $20 stock pays $1 in annual dividends, its yield is 5%. Investors looking for regular income often prefer high-yielding stocks, but remember that unusually high yields can sometimes indicate underlying problems with the company.

What are REITs and why do they typically have high dividends?

REITs (Real Estate Investment Trusts) are companies that own, operate, or finance income-producing real estate. Companies like AGNC Investment and Annaly Capital Management in this group are REITs. They're required by law to distribute at least 90% of their taxable income to shareholders as dividends, which is why they typically offer higher yields than many other stocks. This makes them popular among investors seeking regular income.

What is the ex-dividend date and why is it important?

The ex-dividend date is the date when you must own a stock to receive its upcoming dividend payment. If you buy a stock on or after its ex-dividend date, you won't receive the next dividend payment; the seller will get it instead. This date is important for investors who want to make sure they'll receive the upcoming dividend, especially for high-yield stocks where the dividend is a significant part of the expected return.

Are high-yielding stocks considered risky investments?

High-yielding stocks can carry additional risks compared to lower-yield options. Companies offering unusually high dividends might be experiencing financial difficulties, which is why their share price has fallen (raising the yield percentage). Some may have sustainable high yields due to their business model (like REITs), but others might eventually cut their dividends if business conditions worsen. That's why this collection recommends balancing these investments with more stable stocks for a diversified portfolio.

What are CLOs mentioned in connection with Oxford Lane Capital?

CLOs (Collateralized Loan Obligations) are securities backed by a pool of debt, typically corporate loans with low credit ratings. Oxford Lane Capital (OXLC) specializes in investing in these instruments. CLOs offer higher yields because they involve higher-risk loans, but they're structured to provide some protection through diversification and payment prioritization. This structure allows companies like OXLC to generate income that supports their high dividend payments.

10 handpicked stocks

High Yielding Stocks

Looking for income from your investments? These carefully selected companies have historically paid substantial dividends compared to their share prices. Our analysts have handpicked these stocks for their dividend potential.

Han Tan | Market Analyst

Published on May 7

Top Picks from This Group

Here are a few of the assets in this group. Create an account to unlock the full list.

Icahn Enterprises, L.P.

IEP

Current price

$8.37

Oxford Lane Capital Corp.

OXLC

Current price

$17.16

MACH NATURAL RESOURCES L.P.

MNR

Current price

$13.44

AGNC Investment Corp.

AGNC

Current price

$9.93

FS KKR Capital Corp

FSK

Current price

$15.30

Two Harbors Investment Corp.

TWO

Current price

$10.09

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12 Month Growth Potential

Use the growth calculator to see how much investing in these assets could return over one year, based on aggregated analyst sentiment provided by Refinitive Ltd.

If you invested across these assets:

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In 12 months it might be worth:

$1,000.00

+57.12%

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About This Group of Stocks

Our Expert Thinking

These stocks offer attractive dividend yields relative to their current prices. From REITs and energy partnerships to financial services and shipping companies, they represent sectors that traditionally prioritize returning value to shareholders through regular dividend payments.

What You Need to Know

High-yield stocks can provide steady income, but they often come with higher risk profiles. These companies are currently undervalued compared to their historical dividend payments, suggesting potential value. Consider these as part of a balanced portfolio rather than your entire investment strategy.

Why These Stocks

We've selected companies across diverse sectors including REITs, natural resources, shipping, and financial services. Each has demonstrated a commitment to maintaining dividend payments, creating potential income opportunities for investors looking beyond just stock price appreciation.

Group Performance Snapshot

57.12%

Average 12 Month Profit

On average, analysts expect assets in this group to grow 57.12% over the next year.

8 of 10

Stocks Rated Buy by Analysts

8 of 10 assets in this group are rated Buy by professional analysts.

30.2% vs 4%

Group Growth vs Bank interest

This group averaged a 30.2% return last month, beating the typical 4% bank rate.

Source: Analyst sentiment is provided by Refinitiv Ltd, a global leader in financial market data with over 40k business clients. Refinitiv Ltd is an independent third party to Nemo. This is not advice.

Why You'll Want to Watch These Stocks

💰

Regular Income Potential

These high-yield stocks can provide regular dividend payments, creating a steady income stream that many investors find attractive compared to growth-only stocks.

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Currently Undervalued

Our analysts believe these stocks may be undervalued relative to their dividend history, potentially offering both income and price appreciation if markets recognize their value.

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Diverse Sector Exposure

From real estate and energy to shipping and financial services, this collection offers exposure to multiple dividend-focused sectors in a single convenient group.

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