Investing in the stock market is a pretty basic proposition for most: Purchase stocks, hope they go up. That’s price appreciation.
But some stocks offer cash payments called dividends—a second source of gains that, for most companies, will account for between 1 to 3 percentage points of their annual returns. It’s not necessarily much, but it can be meaningful over time.
High-yield dividend stocks, however, are a different breed. These companies pay dividends so large, they might very well account for around half or more of their average annual returns. That’s helpful—an outsized amount of income can act as a cushion when the market (and even the high-dividend stock itself) is struggling to tread water. These cash distributions also represent stability of sorts for retirees, whose budgets are typically fixed.
That said, there’s no such thing as a free lunch. We can’t just buy a company’s stock on headline yield alone, because there could be other complicating issues that make it a poor investment. In fact, high yields can occasionally be a signal of underlying weakness in shares … and dividends aren’t guaranteed, either, so we have to be vigilant about determining those payouts’ viability.
Today, I want to highlight a group of highly rated dividend stocks. Not only do these companies on average yield a wild 9.7% on average, but they’re among the best-reviewed companies by Wall Street’s research community.
Editor’s Note: Tabular data presented in this article is up-to-date as of April 10, 2026.
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Disclaimer: This article does not constitute individualized investment advice. Individual securities, funds, and/or other investments appear for your consideration and not as personalized investment recommendations. Act at your own discretion.
Table of Contents
Dividend Yields (And Dividend Safety)
Dividend yield is a simple calculation: annual dividend / price x 100. But this humble calculator crunch can mean a world of difference for investors, especially those reliant on income.
Let’s say you have a $1 million nest egg heading into retirement. If your portfolio yields 3%, you’ll collect $30,000 in dividend and interest income each year. If it yields 6%, though, you’ll collect $60,000—a dramatically higher number that would wildly alter your retirement calculus.
But dividend yields can be deceiving. You see, a company can get a very high annual dividend yield in two very different ways: the dividend growing very rapidly, or the share price falling very quickly. Here’s an example:
Alpha Corp., which trades for $100 per share, pays a 50¢-per-share quarterly dividend, or $2 across the whole year. It yields 2.0%. In a month, however, it yields 4.0%. Here are two ways that could have happened:
- Alpha Corp. doubled its dividend to $1.00 per share quarterly, good for a $4-per-share annual dividend. The share price stays the same. ($4 / $100 x 100 = 4.0%)
- Alpha Corp. kept its dividend at 50¢ quarterly ($2 annually), but its share price plunged in half to $50 per share. ($2 / $50 x 100 = 4.0%)
Understand that a company’s stock can plunge even if its financials are perfectly healthy; markets aren’t always rational. But very broadly speaking, if you’re comparing a company that just doubled its dividend to another company whose shares have been cut in half, you’d expect the former’s dividend health to be better.
That’s why you should always be mindful of dividend safety, but especially when it comes to high-yield dividend stocks. That’s because oftentimes, the dividend is a more significant contributor to returns than price, so any danger to the dividend could undermine your investment thesis.
So, that’s your goal: Determine whether the high-dividend stocks you buy are financially stable and can generate substantial profits and cash, which is how the dividend gets paid. Among other things, you’ll want to look at payout ratio, which determines what percentage of a company’s profits, distributable cash flow, and other financial metrics (depending on the type of stock) are being used to finance the dividend. Generally speaking, the lower the payout ratio, the more sustainable the payout.
How Does Dividend Growth Work?
Of course, yield is normally a function of what we know now—not how a business might change in the future. Many companies exhibit dividend growth over time.
There’s no universal rule about how companies might raise or reduce their payments, but generally dividend stocks tie these profit sharing plans to earnings growth.
In other words, if a company is making more profits, then they have more cash to spread around to shareholders. And if they hit a serious snag, there’s a chance dividends could be cut or eliminated to shore up finances.
What Is Yield on Cost?
When you look up a stock’s information, the dividend yield listed is based on the most recent dividend and the current stock price.
That yield is often actually different than the one current shareholders enjoy. That yield is called “yield on cost,” which is the payout based on what you paid, at the moment you invested.
Let’s say you buy a stock at $100, and it pays $1 per share. It yields 1.0% when you buy it ($1 / $100 x 100 = 1.0%).
In a year, that stock has doubled to $200 per share, and it also doubled its dividend to $2 per share. If you look up its information, its dividend is still 1.0% ($2 / $200 x 100 = 1.0%).
That’s not your yield on cost, however. You’re still receiving that higher dividend of $2 per share. But your cost basis is still the original $100 you bought the share at. So now, your yield on cost has doubled, to 2.0% ($2 / $100 * 100 = 2.0%)!
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8 High-Yield Stocks That Wall Street Analysts Love
Today, I’m going to look at several high-dividend stocks yielding at least 5%—a level that’s more than four times what the S&P 500 offers currently, and that’s well above most traditional high-dividend ETFs. And most of these stocks pay much, much more than 5% … in fact, their average yield now sits at 10.5%.
Every stock on this list also has a favorable view from Wall Street’s analyst community. The consensus analyst rating, courtesy of S&P Global Market Intelligence, is the average of all known analyst ratings of the stock, boiled down to a numerical system where …
- Less than 1.5 = Strong Buy
- 1.5-2.5 = Buy
- 2.5-3.5 = Hold
- 3.5-4.5 = Sell
- More than 4.5 = Strong Sell
In short, the lower the number, the better the overall consensus view on the stock. In the case of this list, I’ve included only stocks that have received a 2 or lower—in other words, clear-cut Buys in the analysts’ eyes.
Importantly: These are the best dividend stocks among companies that pay pretty high yields, but that doesn’t make any pick here a no-brainer slam dunk. They all have a blemish or two—whether it’s significant stock weakness of late, interest-rate risk, tight dividend coverage, or something else—but to the pros, at least, their high yields, relative value, and/or growth potential make the risk worth taking. So if you’re going to jump into high-yield investing, just make sure you do so with your eyes wide open.
Stocks are listed in reverse order of dividend yield, from the lowest-paying stock to the highest.
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8. Amcor
- Industry: Packaging and containers
- Market capitalization: $19.4 billion
- Dividend yield: 6.2%
- Consensus analyst rating: 1.69 (Buy)
Amcor (AMCR) produces flexible and rigid packaging products for a wide variety of industries. Its rigid packaging is used on any number of grocery-store items, including soft drinks, water, sports drinks, sauces, spreads, even personal-care items, while its flexible packaging is used in the food-and-beverage, medical, and pharmaceutical industries, among others. (Thus, while Amcor is considered a consumer discretionary name, it’s truly closer to being a consumer-industrial hybrid.)
Amcor is also a lot bigger than it was this time last year, having completed its acquisition of Berry Global in April 2025. The combined company now boasts more than 400 facilities and 75,000 employees, with a reach of over 40 countries.
Mergers and acquisitions (M&A) can cause short-term turbulence, and that very well could be the case at Amcor, where analysts are largely bullish (nine Buys versus three Holds and no Sells) but cautious about the months ahead.
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“We believe the company has multiple avenues at its disposal to drive more pronounced volume growth, EBITDA, and FCF [following the Berry] acquisition, which we view as a transformational transaction,” says Truist Managing Director Michael Roxland, who rates shares at Buy. “Volumes should improve by at least 100bps through a combination of cross-selling, new geographies, and do-it-yourself. Further, EBITDA and FCF growth will be driven by better volumes as well as cost synergies, which we believe have upside.”
Amcor isn’t just a high dividend yielder; it’s a longtime dividend grower, too.
The company boasts more than four decades of uninterrupted annual hikes to its cash distribution, putting it among the ranks of the S&P 500 Dividend Aristocrats. AMCR marked 42 years with the announcement of a 2% raise, to 65¢ per share, in November 2025. (Note: The dividend amount here has been adjusted for a 1-for-5 reverse stock split, also announced in November, that was completed in mid-January 2026. At the time of the announcement, the increase was listed as a 2% raise to 13¢ per share.)
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7. Alpine Income Property Trust
- Industry: Net lease REIT
- Market capitalization: $312.8 million
- Dividend yield: 6.3%
- Consensus analyst rating: 1.45 (Strong Buy)
Alpine Income Property Trust (PINE) is a real estate investment trust (REIT) that owns a portfolio of 127 predominantly single-tenant “net-lease” properties in 32 states. Its tenants include retailers, pharmacies, grocery stores and more—tenants include Lowe’s (LOW), Dick’s Sporting Goods (DKS), Walgreens (WBA), and Best Buy (BBY).
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Net-lease arrangements are different from traditional leases. They typically require tenants to be responsible for taxes, insurance, and maintenance—thus, all rent is “net” of those expenses. As a result, net-lease REITs’ results tend to be a little more regular and predictable compared to traditional REITs.
It also has a portfolio of mortgage originations, which it can use to bolster its income, but it’s a higher-risk, lower-quality business.
“[Alpine Income Property Trust has] a favorable portfolio composition relative to peers in terms of both retail real estate and investment-grade tenant exposure,” says B. Riley Securities analyst John Massocca, who rates the stock at Buy. “A more dovish interest-rate environment should be a positive given the REIT’s current floating-rate exposure and near-term refinancing needs. Improvements in the cost of debt capital could also help offset the impact of expected high-yield loan investments maturing in the next few years.”
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Massocca, who reiterated his Buy call after the company’s Street-beating earnings report in February, is one of nine Buys on the stock, versus two Holds and no Sells.
PINE has been dutifully raising its dividend since coming public in 2019. The most recent quarterly payout of 30¢ per share annualizes to a yield of more than 6% at current prices. There’s naturally higher risk just given Alpine’s small size relative to most of the other names on this list, but its yield and growing business put it among the best high-yield dividend stocks to buy now.
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6. Energy Transfer LP
- Industry: Energy midstream
- Market capitalization: $65.9 billion
- Distribution yield: 7.0%*
- Consensus analyst rating: 1.52 (Buy)
Energy Transfer LP (ET) is one of the continent’s largest midstream energy firms. The Dallas-based MLP’s assets include roughly 140,000 miles of energy pipelines and other infrastructure across 44 states, and it’s responsible for transporting and storing crude oil, natural gas, NGLs, and refined products. Its additional assets include Lake Charles LNG Company, a 21% stake in Sunoco LP (SUN), and a 38% stake in USA Compression Partners LP (USAC).
“We continue to favor ET’s dominant energy infrastructure footprint and believe the partnership is well positioned to grow over the last several years,” say Stifel analysts Selman Akyol and Timothy O’Toole, who rate Energy Transfer’s units at Buy. “While capital expenditures will likely remain elevated in the near-term, we believe ET can maintain an attractive financial position and continue to modestly grow its distribution. We believe investors will be well served by owning ET as demand for U.S. energy increases around the globe.”
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UBS analyst Manav Gupta (Buy) adds that Energy Transfer is well-positioned to meet growing demand for natural gas to generate electricity for data centers. “ET has a head start, and at this point, it has more third-party customers signed up to supply nat gas to power data centers than their peers,” he says. “We see this momentum continuing and expect existing orders to be upsized as ET signs new customers in the next 12-24 months.”
This promise has 18 of ET’s 21 covering analysts in the Buy camp. The trio of dissenters call ET a Hold.
As for the distribution? For those who don’t remember, Energy Transfer chopped its payout in half in 2020 during the depths of COVID. However, it started a quarterly distribution growth streak in 2022—one that has persisted even after it surpassed post-COVID distribution levels in late 2023.
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Energy Transfer says it’s committed to growing the distribution even more going forward, though it’s taking an understandably cautious approach, targeting 3% to 5% annual growth. Distribution coverage is plenty adequate; estimates for distributable cash flow are just a little less than twice what it needs to afford its payout.
You’ll probably notice that I’ve been using some unfamiliar terminology. That’s because ET is a master limited partnership (MLP), which trades like a stock but is internally organized differently. It also uses a few different terms. For instance, shares are “units,” and it pays a dividend-esque “distribution” that can be something of a hassle from a taxation standpoint, especially for novices.
* Distribution yield is calculated by annualizing the most recent distribution and dividing by unit price. Distributions are like dividends, but they are treated as tax-deferred returns of capital and require different tax paperwork.
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5. CTO Realty Growth
- Industry: Retail and mixed-use REIT
- Market capitalization: $636.7 million
- Dividend yield: 7.8%
- Consensus analyst rating: 1.00 (Strong Buy)
CTO Realty Growth (CTO) is a retail-oriented REIT that holds a tight portfolio of 21 properties spanning 5.5 million square feet across seven Southeast and Southwest states. It also owns a roughly 15% interest in the aforementioned Alpine Income Property Trust.
It divides its portfolio into three types of properties: grocery-anchored retail, retail “power centers,” and retail-focused lifestyle and mixed-used properties. Its properties are also located in and near affluent areas—the portfolio average household income within five miles is $140,000—many of which are benefitting from booming population growth.
The company has actually existed in one form or another since 1902, and it has been paying dividends for more than half a century. But it really put the pedal down on dividend payments when it converted into a REIT in early 2021. The company paid 12¢ per share across 2019; in 2025, it paid $1.52.
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The stock has largely responded, doubling on a total-return basis (price plus dividends) since Feb. 1, 2021, versus just about 30% gains for the REIT benchmark.
The few analysts who cover CTO Realty Growth see more good times ahead. Indeed, they’re unanimously bullish—all six call the stock a Buy. Thus, while CTO shares don’t have have the largest dividend on this list, it’s easily the best-rated of our high-yield dividend stocks.
Late last year, B. Riley Financial analyst John Massocca (Buy) says the REIT “trades at far and away the lowest FFO/sh and AFFO/sh multiples in the shopping center REIT subsector and one of the widest reNAV/sh discounts,” referring to funds from operations and adjusted funds from operations, which are pivotal metrics of REIT profitability. “While some of this can be explained by the REIT’s small market cap and elevated leverage vs. peers, we still believe the scale of the REIT’s discount is far too severe. This is especially true, in our opinion, given CTO’s robust recent investment activity, the high yields on those investments, and recent incremental reductions to leverage.” He maintains a Buy rating on shares today.
The dividend is in good shape, too. CTO recently provided full-year 2026 AFFO guidance of $2.11-$2.16 per share, which would easily cover the company’s $1.52 in annual dividends.
4. Rithm Capital
- Industry: Mortgage REIT and alternative asset management
- Market capitalization: $5.5 billion
- Dividend yield: 10.0%
- Consensus analyst rating: 1.44 (Strong Buy)
Most REITs that you read about tend to be “equity REITs,” which deal in physical real estate. Specifically, they own (and sometimes operate or manage) properties, whether that’s apartments, office buildings, hotels, warehouses, you name it.
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But “mortgage REITs” deal in paper real estate. That typically takes the form of residential and/or commercial mortgages, as well as mortgage-backed securities (MBSes). An mREIT will borrow money at short-term interest rates. It will take that money and buy mortgages, MBSes, and/or other mortgage-related securities. It will then earn income from the interest generated by these products—and use much of this profit to pay dividends to its shareholders. In fact, mREITs tend to have higher dividend yields than their traditional real estate cousins.
Rithm Capital (RITM) is technically a mortgage REIT, though it looks much different than the other mREITs that appear later in this list. This “hybrid” mREIT has numerous businesses, including alternative asset management. RITM invests in residential mortgages loans, consumer loans, single-family rentals, mortgage servicing rights (MSRs), residential transitional loans, secured lending and structured products, and commercial real estate.
Ever since the 2020 financing crisis, the company has transformed its business model, growing its mortgage servicing business while also acquiring a variety of debt-related investment opportunities. It continues to be acquisitive, too, completing deals to acquire an alternative asset manager (Crestline Management) and an owner-operator of Class A properties (Paramount Group) in December 2025.
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“Over the past few years, RITM has transitioned from an owner of [mortgage servicing rights] to a mortgage bank and diversified investment manager with multiple business segments. The company also acquired Sculptor, a publicly traded asset manager, in 2023,” say Keefe, Bruyette & Woods analysts, who rate the stock at Outperform. “We think the shares provide an attractive combination of a stable current return with potential upside optionality if the company is able to grow as an alternative asset management and/or publicly list its mortgage bank at a premium to book value.”
The pros love the new-look RITM. Currently, every one of the nine analysts covering the stock call it a Buy. More recently, a dip in shares has some of those analysts excited about the value proposition.
“We believe that the market is lumping alternative managers together and ignoring RITM other business lines,” writes Argus Research analyst Kevin Heal (Buy). “It continues to grow its mortgage servicing business, refine its’ mortgage recapture process with recent partnerships while also taking advantage of new debt-related investment opportunities.”
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3. Sixth Street Specialty Lending
- Industry: BDC
- Market capitalization: $1.7 billion
- Dividend yield: 11.1%*
- Consensus analyst rating: 1.55 (Buy)
Sixth Street Specialty Lending (TSLX) belongs to another high-yielding acronym industry: business development companies (BDCs).
Fun fact: Congress is actually responsible for the creation of real estate investment trusts, which were brought to life in 1960 with a mandate to return at least 90% of their taxable income back to shareholders as dividends (in exchange for favorable tax treatment). Well, 20 years later, in the hopes of spurring investment in smaller businesses, Congress went back to the same playbook and created BDCs—with the same dividend mandate.
Sixth Street Specialty Lending provides financing to middle-market companies primarily through senior secured loans, though also occasionally mezzanine loans, unsecured loans, bonds, and equity. Importantly, 96% of the company’s debt investments are floating-rate in nature, meaning that their rates shift alongside benchmark interest rates.
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TSLX is somewhat conservative compared to other BDCs; historically, it has held only 5% to 15% of its investments (by fair value) in cyclical companies. Currently, it has 143 portfolio companies across internet services, retail, consumer products, business services, and about a dozen other industries; that number includes 36 structured credit investments. No holding makes up more than 3% of the portfolio by fair value.
“Because TSLX is a relatively small vehicle managed under the large Sixth Street Partners platform ($70+ billion), it can be nimble, flexible, and creative in providing compelling credit solutions to borrowers, but also has the size, scale, and resources of a large credit platform. This has contributed to TSLX’s originating very attractive investments and generating one of the highest returns in the BDC sector,” say Keefe, Bruyette & Woods analysts, who are among the 10 firms with Buy-equivalent calls on the stock, versus one Hold and no Sells. “We view TSLX’s management team as one of the best in the sector, which has been proven by their ability to generate significant value and very high returns through many different economic environments.”
That said, prospective and current shareholders alike should mind the latest on former CEO Joshua Easterly, who stepped down from the role at the end of 2025 but retained his roles as co-President and co-CIO of Sixth Street. In February, he announced he would retire fully once his term as chairman ends in June. “While TSLX held up well following the prior CEO change announcement last November, there was still a perception that Mr. Easterly would remain a member of the investment process at Sixth Street,” KBW analyst Paul Johnson says. “We believe the announcement will create some uncertainty among investors as it is essentially two unexpected announcements.”
* Sixth Street Specialty Lending’s yield may include variable supplemental dividends. The yield on TSLX’s regular quarterly dividend is 10.3% as of this writing.
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2. Trinity Capital
- Industry: BDC
- Market capitalization: $1.2 billion
- Dividend yield: 13.4%
- Consensus analyst rating: 1.78 (Buy)
Trinity Capital (TRIN), another BDC, is an alternative asset manager that focuses on five specific business verticals: technology lending, equipment financing, life sciences, asset-based lending, and sponsor finance.
Loans make up the majority (77%) of the portfolio by investment type, floating-rate loans make up a large (82%) and growing percentage of that part of the debt portfolio. Another 15% is made up of equipment financings, and the rest is equity and warrants. Its roughly 200 portfolio companies include the likes of launch service and spacecraft component provider RocketLab, non-alcoholic craft brewer Athletic Brewing, and arthroplasty-focused medical device firm Shoulder Innovations.
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B. Riley Securities analyst Sean-Paul Adams has a Buy rating on shares, citing the company’s investment-grade rating from Moody’s, SBIC fund approval, record origination levels and increased equipment finance vertical demand. “TTRIN’s strong yield preservation, originations momentum, and platform expansion provide meaningful near-term upside potential, in our view, with trends in Sponsor Finance volumes having a minimal impact on net origination growth,” he says.
Adams is one of seven Buy-equivalent ratings on the stock, opposed by just one Hold and one Sell.
Trinity’s sky-high dividend yield (currently north of 13%) is blunted a little bit by a lack of payout growth. The company came public in early 2021, and raised its dividend on a quarterly basis through the end of 2023, but it has kept that distribution level ever since.
That said, Trinity started 2026 by joining the ranks of monthly dividend stocks, so investors will be getting paid much more frequently now. That, as well as the mammoth payout and high ratings from analysts, are more than enough to put Trinity among the best high-yield dividend stocks to buy now.
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1. Dynex Capital
- Industry: Mortgage REIT
- Market capitalization: $2.7 billion
- Dividend yield: 15.4%
- Consensus analyst rating: 1.83 (Buy)
Dynex Capital (DX) is the longest-tenured mREIT, founded in 1987. And it’s explicitly an “agency” mREIT, which means it deals in mortgages and MBSes from government agencies such as Freddie Mac and Fannie Mae. In fact, its portfolio is 97% agency residential MBSes (RMBSes), and most of the remainder is agency commercial MBSes (CMBSes).
Keefe, Bruyette and Woods, whose analysts rate Dynex at Outperform, was broadly bullish on agency MBS sectors heading into 2026. Agency MBS spreads tightened in the back half of 2025, but KBW believed spreads would benefit from a steeper yield curve as the Federal Reserve cut rates. The year hasn’t played out that way so far, but KBW still remains upbeat about DX.
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“We still believe a modestly steepened yield curve and stable rate environment is a generally constructive backdrop for financials,” KBW wrote recently. “We … remain fairly constructive on agency MBS REITs and remain [outperform] on [Annaly Capital Management, NLY] and DX.”
KBW is just one of a handful of analyst outfits that cover Dynex, which is typical for the mREIT industry. Still, among these few pros, the bulls are the majority—DX has four Buys versus two Holds and no Sells.
Dynex pays a monthly dividend, and a generous one at that—well more than 15% as I write this. However, mortgage REITs tend to have shakier dividend histories than traditional stocks and even equity REITs, and DX is no exception. Its dividend was hacked away by 85% between 2012 and 2020, to 13¢ per share monthly. But things are looking up recently: The company finally raised its dividend in mid-2024, to 15¢, then again in Feburary 2025, to 17¢.
Still, that payout history is an important reminder that double-digit yields are hardly risk-free.
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Do All Companies Pay Dividends?
Not all companies pay dividends. Some companies choose not to, while other companies cannot afford to.
As you can tell by this list, the best dividend stocks are normally slow-and-steady companies that have consistent operations. While it might be possible for a small software company or biotech firm to double its share price overnight, these companies rarely pay dividends because they don’t have much in the way of profits—and what they do have, they want to spend on other things, like research and development to continue growing.
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How Often Do Companies Pay Dividends?
The cycle of paying dividends is always different depending on the company. While it’s generally true that most U.S. corporations opt to pay their shareholders a dividend once per quarter, the dates aren’t fixed.
Specifically, one company might pay you on a January-April-July-October payment cycle while another opts for February-May-August-November.
Complicating things further, some companies pay dividends twice a year, some pay once a year, and some even pay “special” unscheduled dividends.
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What Should Income Investors Look for in a Dividend Stock?
There are a host of things to consider when looking for the best dividend stocks.
First, and foremost, you should make sure you understand the underlying business and its strategy; just because a company pays a dividend doesn’t mean it can’t crash and burn.
If you generally like what you see, then you should consider the quality of the dividends including the history of payouts and the payout ratio as a portion of total earnings.
Then, you should consider the quantity of that dividend and the potential for future growth in payouts.
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We love exchange-traded funds (ETFs) because they can provide one-click access to hundreds, even thousands of stocks, while charging often minuscule fees.
One way to put that low-cost diversification to work? Collecting dividends. But trying to choose from literally hundreds of income-producing funds could take up a lot more time than you have. So let us help you narrow the field—check out our list of 10 top dividend ETFs.
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Investors often look to exchange-traded funds (ETFs) for cheap, passive exposure to basic broader market indexes like the S&P 500.
But Fidelity’s ETF suite really shines because in addition to some of those plain-vanilla offerings, Fidelity also provides more tactical ways of tapping into specific corners of Wall Street. See what we mean by checking out our list of the best Fidelity ETFs.
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