5 Dividend Stocks Now Yielding Over 8%. Wall Street Is Taking Notice

5 Dividend Stocks Now Yielding over 8 Wall Street is Taking Notice
2 months ago

Several high-yield dividend stocks are quietly offering 8%+ income while maintaining stable cash flows. Some investors prioritize steady dividend growth over decades, while others focus on maximizing current yield.

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.

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:

  • A $42.5 million preferred investment in life sciences

  • The sale of a multifamily property for $60 million

  • $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.

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