Investors love dividend stocks because they provide dependable income and give investors a great opportunity for solid total return. Total return includes interest, capital gains, dividends, and distributions realized over time. In other words, the total return on an investment or a portfolio consists of income and stock appreciation.
At 247 Wall St., we always like to remind our readers about the impact total return has on portfolios because it is one of the best ways to help improve the chances for overall investing success. Again, total return is the combined increase in a stock’s value plus dividends.
We screened our 24/7 Wall St. Ultra-Yield dividend stock research universe and found five stocks with yields so big you genuinely have to see them to believe it. All five are better suited for more aggressive income investors.
Annaly Capital Management
This mortgage REIT has been around for years and is a top-income idea paying a huge 13.27% dividend. Annaly Capital Management, Inc. (NYSE: NLY | NLY Price Prediction) is a diversified capital manager in mortgage finance and corporate middle market lending.
The company invests in:
- Agency mortgage-backed securities
- Mortgage servicing rights,
- Agency commercial mortgage-backed securities,
- Non-agency residential mortgage assets,
- Residential mortgage loans
- Credit risk transfer securities
- Corporate debts and other commercial real estate investments
It has elected to be taxed as a real estate investment trust (REIT).
Hercules Capital
This highly regarded company across Wall Street pays a giant 10.80% dividend. Hercules Capital, Inc. (NYSE: HTGC) is the largest non-bank lender to venture capital-backed companies at all stages of development in a broadly diversified variety of technology, life sciences, and sustainable and renewable technology industries.
With two decades of experience in venture debt, Hercules is uniquely positioned to quickly create innovative financing solutions that perfectly fit within a company’s existing capital structure and map to its business objectives.
Recognized as the industry leader, Hercules understands the flexibility these types of companies need and has the experience to work closely with them, even through challenging times, to help them reach critical milestones.
Since its inception in December 2003, Hercules has committed more than $18 billion to over 640 companies and is the lender of choice for entrepreneurs and venture capital firms seeking growth capital financing.
Mach Natural Resources
This 2023 IPO is trading below the initial price and will pay a gigantic 14-16% dividend. Mach Natural Resources (NYSE: MNR) is an independent upstream oil and gas company focused on the acquisition, development, and production of oil, natural gas, and natural gas liquids reserves in the Anadarko Basin region of Western Oklahoma, Southern Kansas, and the panhandle of Texas.
The analysts at Raymond James noted that the company is led by Tom Ward, Co-Founder of Chesapeake Energy; Mach is another entrant into the E&P MLP space. MNR is a pure-play operator in the Anadarko Basin, leveraging its strong position (1 million net acres) to become the primary consolidator in the region.
Mach’s midstream position and lower base decline (~20%) allow the company to target a lower reinvestment rate (~30%) relative to the overall industry.
The company posted solid results last quarter and will announce the distribution rate this month.
Oaktree Specialty Lending
This stock is a Wall Street favorite and pays a rich 10.25% dividend. Oaktree Specialty Lending Corporation (NASDAQ: OCSL) is a business development company.
The fund specializes in investments in the following:
- Middle market
- Bridge financing
- First and second-lien debt financing
- Unsecured and mezzanine loans
- Mezzanine debt
- Senior and junior secured debt,
- Expansions sponsor-led acquisitions
- Preferred Equity
- Management buyouts in small and mid-sized companies
It seeks to invest in:
- Education services
- Business services
- Retail and consumer services
- Healthcare
- Manufacturing
- Food and restaurants
- Construction
- Engineering.
The firm also seeks investment in:
- Media
- Advertising sectors
- Software
- IT services
- Pharmaceuticals
- Biotechnology
- Real estate management and development
- Chemicals
- Machinery
- Internet and direct marketing retail sectors
It invests between $5 million to $75 million in the form of one-stop, first-lien, and second-lien debt investments, which may include an equity co-investment component in companies.
The firm invests in companies having enterprise value between $20 million and $150 million and EBITDA between $3 million and $50 million. The fund has a hold size of up to $75 million and may underwrite transactions up to $100 million.
Vitesse Energy
This energy stock pays an outstanding 9.20% dividend and has significant upside potential. Vitesse Energy Inc. (NYSE: VTS) focuses on the:
- Acquisition
- Ownership
- Exploration
- Development
- Management
- Production
- Exploitation
- Disposal of oil and gas properties
The company acquires non-operated working and royalty interest ownership in North Dakota and Montana. It also owns non-operated interests in oil and gas properties in Colorado and Wyoming.
When the company reported third-quarter results, it announced a working interest in 263 gross (7.7 net) wells that were either drilling or in the completion phase and another 389 gross (10.0 net) locations permitted for development at the end of the quarter.
Top Gaining Stocks
Top Losing Stocks