Investing

4 Absolutely Best Dividend Stocks Yielding Over 10%

Lee Jackson

Published: May 13, 2024 7:06 am

Investors love dividend stocks, especially the ultra-yield variety because they provide a significant income stream and offer massive total returns. 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.

Most dividend investors aim to secure a reliable passive income stream from quality dividend stocks. Passive income is a consistent unearned income that doesn’t require active traditional work. It’s a financial goal that can be achieved through various means, including investments, real estate, or side hustles.

Ultra-yield dividend stocks are a great way to generate passive income for those with higher risk tolerance. We screened our 24/7 Wall St. Ulta-Yield dividend stock research database, looking for the best companies that pay over 10%. Four companies look like great ideas now; all are rated Buy by top Wall Street firms. 

Why are we covering these stocks?

Source: relif / Getty Images

Despite the rise in interest rates over the last two years, we still see persistent “sticky” inflation on many everyday items we all have to purchase. Those looking to enhance their earnings with passive income can benefit from stocks that pay ultra-yield dividends. We looked for the very best companies paying a 10% yield. 

Bancolombia S. A. 

Source: Arturo Rosenow / iStock via Getty Images

This is one of the largest banks in Columbia and pays a stellar 11.16% dividend. Bancolombia S.A. (NYSE: CIB) together with its subsidiaries, provides banking products and services in Colombia and internationally.

The company operates through nine segments:

• Banking Colombia
• Banking Panama
• Banking El Salvador
• Banking Guatemala
• Trust
• Investment Banking
• Brokerage
• International Banking
• All Other

It offers:

• Checking and savings accounts
• Money market accounts
• Time deposits
• Fixed term deposits
• Investment products
• Trade financing, loans funded by domestic development banks
• Working capital loans
• Credit cards
• Personal and vehicle loans
• Payroll loans and overdrafts
• Factoring
• Financial and operating leasing services

The company also provides:

• Hedging instruments, including futures, forwards, options, and swaps
• Brokerage, investment advisory
• Private banking services comprising selling and distributing equities, futures, foreign currencies, fixed-income securities, mutual funds, and structured products.

In addition, it offers cash management services, foreign currency, and trade finance solutions, letters of credit and bills collection, insurance and bancassurance products, telephone, and mobile phone banking services, and online and computer banking services.

Further, the company provides:

• Project and acquisition finance
• Loan syndication
• Corporate loans
• Debt and equity capital markets
• Principal investments
• Mergers and acquisitions
• Hedging strategy advisories
• Restructurings
• Structured financing
• Mutual and pension funds
• Private equity funds
• Payment and corporate trust, and custody
• Internet-based trading platform
• Inter-bank lending and repurchase agreements
• Managing escrow accounts
• Investment and real estate funds

British American Tobacco

Source: Getty Images/Justin Sullivan

This European giant continues to print money and pays a massive 10.10% dividend.

British American Tobacco plc (NYSE: BTI) offers:

• Vapor
• Tobacco heating
• Modern oral nicotine products
• Combustible cigarettes
• Traditional oral products, such as snus and moist snuff

The company offers its products under:

• Vuse,
• Glo
• Velo
• Grizzly
• Kodiak
• Dunhill
• Kent
• Lucky Strike
• Pall Mall
• Rothmans
• Camel
• Natural American Spirit
• Newport
• Vogue
• Viceroy
• Kool
• Peter Stuyvesant
• Craven A
• State Express 555 
• Shuang Xi brands

Hercules Capital

Source: nespix / iStock via Getty Images

This highly regarded company across Wall Street pays a giant 10.04% 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.

Starwood Property Trust

Source: Giulio Di Sturco / Getty Images News via Getty Images

This is a high-yielding company run by real estate legend Barry Sternlicht that offers big-time total return potential and a 10.12% dividend. Starwood Property Trust, Inc. (NYSE: STWD) operates as a real estate investment trust (REIT) in the United States, Europe, and Australia.

It operates through four segments:

• Commercial and Residential Lending
• Infrastructure Lending
• Property
• Investing and Servicing segments

The Commercial and Residential Lending segment:

• Originates, acquires, finances, and manages commercial first mortgages
• Non-agency residential mortgages
• Subordinated mortgages
• Mezzanine loans
• Preferred Equity
• Commercial mortgage-backed securities (CMBS)
• Residential mortgage-backed securities

The Infrastructure lending segment originates, acquires, finances, and manages infrastructure debt investments.

The Property segment primarily develops and manages equity interests in stabilized commercial real estate properties, such as multifamily properties and commercial properties subject to net leases, that are held for investment.

The Investing and Servicing segment:

• Manages and works out problem assets
• Acquires and contains unrated, investment grade, and non-investment grade rated CMBS comprising subordinated interests of securitization and re-securitization transactions
• Originates conduit loans to sell these loans into securitization transactions and acquire commercial real estate assets, including properties from CMBS trusts.