Dividend investing continues to spark debate across Wall Street. Some investors prioritize steady dividend growth over decades, while others focus on maximizing current yield. Recent data shows both strategies have merit — but attention has shifted back to high-yield dividend stocks delivering income levels that are difficult to ignore.
A long-term review of dividend performance helps explain why the conversation persists. According to ProShares, the Dividend Aristocrats Index — which tracks companies with at least 25 consecutive years of dividend increases — delivered a 14.26% return during the declining interest rate period from May 2005 through March 2024. During the same timeframe, high-yield stocks returned slightly above 10%.
When rates moved higher, dividend growth stocks again outperformed, returning 10.26% compared with 9.22% for high-yield names. Yet despite this historical comparison, high-yield dividend stocks continue attracting investor interest for one simple reason: income matters.
A Wellington study analyzing dividend-paying stocks from 1930 to 2019 found that the highest-yielding 20% of stocks delivered the strongest overall performance during certain periods. Moderate-yield stocks also outperformed at times, while lower-yield dividend names often lagged broader markets.
Against that backdrop, a closer look at stocks yielding above 8% reveals why investors remain willing to accept additional risk for elevated income.
Why High-Yield Dividend Stocks Are Back in Focus
This analysis highlights dividend-paying companies with yields above 8% as of January 26. The screening process emphasized firms with relatively stable dividend policies, though some names show variability due to their unusually high payout levels. Stocks are ranked by dividend yield.
Investor attention is also influenced by hedge fund activity. Research suggests that tracking top hedge fund stock selections can enhance returns. A quarterly newsletter strategy selecting 14 stocks each quarter has generated a 427.7% return since May 2014, outperforming its benchmark by 264 percentage points. That outperformance helps explain why institutional positioning matters to income-focused investors.
The 5 Dividend Stocks Paying More Than 8% Right Now
The RMR Group Inc. (NASDAQ: RMR)
Dividend Yield: 11.21%
The RMR Group operates as a U.S.-based alternative asset manager focused on residential and commercial real estate. The firm oversees approximately $39 billion in assets and employs nearly 900 professionals across more than 30 offices.
On January 7, Ladenburg initiated coverage with a Buy rating and a $17 price target. The company reported $23.6 million in incentive business management fees for 2025, based on a three-year performance measurement period ending December 31, 2025. Diversified Healthcare Trust contributed $17.9 million, while Industrial Logistics Properties Trust added $5.7 million.
RMR declared a quarterly dividend of $0.45 per share ($1.80 annualized), payable around February 19, 2026.
Golub Capital BDC Inc. (NASDAQ: GBDC)
Dividend Yield: 11.40%
Golub Capital BDC operates as an externally managed, non-diversified closed-end investment company focused on direct lending.
In 2025, Golub closed more than $25 billion in financing commitments and raised a record $20.5 billion in new investment capital. Since 2020, its European operations have closed over $9 billion in commitments, serving as lead lender in approximately 90% of transactions.
Over 20 years, Golub’s annual default rates have remained consistently below the broadly syndicated loan index.
Redwood Trust Inc. (NYSE: RWT)
Dividend Yield: 12.37%
Redwood Trust is a specialty finance company focused on housing credit, mortgage banking, and investment activities.
On January 23, JPMorgan upgraded Redwood to Overweight from Neutral and set a $6 price target, citing improved earnings visibility as legacy exposures decline. During its latest earnings update, Redwood reported nearly $7 billion in loans locked or originated — its strongest quarter on record.
Legacy investments now represent roughly 25% of total capital, with management targeting further reductions. The firm also expanded its secured borrowing facility with CPP Investments to $400 million.
NexPoint Real Estate Finance Inc. (NYSE: NREF)
Dividend Yield: 13.68%
NexPoint Real Estate Finance is a commercial mortgage REIT focused on first-lien loans, mezzanine loans, preferred equity, and CMBS investments.
In the third quarter of 2025, the company reported net income of $1.12 per diluted share, up from $0.74 in the prior-year period. Book value rose 8% quarter-over-quarter to $18.79 per share. The firm executed several capital allocation moves, including:
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A $42.5 million preferred investment in life sciences
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Sale of a multifamily property for $60 million
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$65.7 million raised via Series B preferred stock
The portfolio totals 88 investments with $1.1 billion in outstanding balances, heavily weighted toward multifamily and life sciences assets.
B&G Foods Inc. (NYSE: BGS)
Dividend Yield: 17.23%
B&G Foods carries the highest yield on the list.
On January 16, TD Cowen raised its price target to $3.50 while maintaining a Sell rating following the company’s announcement of a $110 million acquisition of the College Inn and Kitchen Basics broth brands from Del Monte Foods. The transaction is tied to Chapter 11 bankruptcy proceedings and remains subject to court approval and closing conditions.
B&G manufactures and distributes branded shelf-stable and frozen food products across North America.
Why These Yields Continue to Capture Attention
Dividend yields ranging from 11% to 17% naturally draw investor focus, particularly in a market where dependable income remains scarce.
While dividend growth strategies historically outperform over long periods, high-yield stocks maintain appeal for investors prioritizing immediate income. However, elevated yields often come with heightened risk — whether tied to leverage, sector concentration, or business cyclicality.
As market conditions evolve, income-oriented investors continue weighing the tradeoff between growth stability and yield intensity.
