Finance1 min read

High-yield US stocks: 10 companies offering dividend yields of up to 16.65%

By · Published by Everything Blog

In short

Mortgage real estate investment trusts AGNC Investment Corp. and Annaly Capital Management lead the market with payouts exceeding 16%, but both have seen their stock values drop over 45% in five years. While alternative asset manager Blue Owl Capital Inc. countered falling share prices with 21.80% annual dividend growth, most high-yield options struggled with equity preservation. Master limited partnerships proved to be the notable exception, delivering substantial capital appreciation alongside their regular income. Western Midstream Partners and MPLX LP gained 113.19% and 94.57% respectively over the five-year period while still yielding over 7%.

Key points

  • The top-yielding mortgage REITs carry elevated payouts alongside five-year share-price lo…: The top-yielding mortgage REITs carry elevated payouts alongside five-year share-price losses exceeding 45%.
  • Only three of the ten featured high-yield companies managed positive stock returns over t…: Only three of the ten featured high-yield companies managed positive stock returns over the five-year period.
  • Energy-focused master limited partnerships combined healthy yields above 7% with the stro…: Energy-focused master limited partnerships combined healthy yields above 7% with the strongest overall capital appreciation.

Sources checked by our analysis pipeline: 1

Mortgage real estate investment trusts (REITs) AGNC Investment Corp. and Annaly Capital Management top the list, offering dividend yields of 16.65% and 16.46%, respectively. Both companies have market capitalisations exceeding $10 billion, at $10.9 billion and $14.4 billion.

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Their five-year dividend growth and share-price performance, however, differ from their high yields. AGNC has recorded no dividend growth over the past five years, while Annaly has reported negative annual dividend growth of 3.80%. Their five-year share-price returns stand at -45.90% and -46.38%, respectively.

Both companies have payout ratios below 80%, at 77% for AGNC and 75.83% for Annaly, based on earnings per share (EPS).

BDCs account for three of the 10 high-yielding stocks

Business Development Companies (BDCs) account for three companies in the list, with dividend yields ranging from 7.93% to 12.13%.

Blue Owl Capital Corporation leads the segment with a dividend yield of 12.13% and a market capitalisation of $5.1 billion. Its annual dividend growth over five years stands at 0.90%, while its five-year share-price return is -27.65%. Its payout ratio is 240.58%…

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