3 Ultra-High-Yield Stocks Wall Street Can’t Stop Saying to Buy

Dividend investing draws in many with the promise of steady income, but chasing high yields carries real dangers. High yields often signal trouble: a stock price drop from poor performance might inflate the yield artificially, masking risks like dividend cuts if earnings weaken. 

Rising interest rates can also make these stocks less appealing compared to safer bonds, triggering outflows and further price declines. Unsustainable payouts have the effect of straining company finances, potentially leading to slashed dividends and capital loss. High payout ratios amplify this — earnings dips could force reductions, hitting total returns hard. 

Yet, Wall Street remains optimistic about three standout dividend stocks below, all yielding over 10% with fresh buy ratings that highlight their resilience and growth potential.

AGNC Investment (AGNC)

AGNC Investment (NASDAQ:AGNC) is a mortgage real estate investment trust (mREIT) focused on agency residential mortgage-backed securities. Those are securities backed by government-sponsored agencies like Fannie Mae, Freddie Mac, and Ginnie Mae. The mREIT leverages borrowed funds to amplify returns on these assets, paying out most income as monthly dividends. AGNC currently sports a dividend yield around 14.5%, backed by its $11 billion portfolio.

While REITs generally carry higher-than-average yields anyway, Wall Street analysts are bullish on AGNC stock, with firms like RBC Capital and UBS reaffirming buy ratings in recent months. They point to AGNC’s strong net asset value growth, up 5% quarter-over-quarter in the second quarter, driven by favorable mortgage spreads amid cooling inflation. Strategic hedging against rate volatility has shielded book value, while a recent preferred stock offering bolsters capital for portfolio expansion. 

Analysts forecast earnings of $0.39 per share for the next quarter, supporting the $1.44 annual dividend. With price targets averaging $9.74 per share –implying modest downside from current levels — bulls see AGNC thriving if the Fed eases rates further, boosting MBS demand.

Investors should buy into this outlook. AGNC’s agency focus minimizes credit risk, and its history of maintaining dividends through cycles adds reliability. That said, leverage exposes it to prepayment and rate swings; a sudden Fed pivot could pressure spreads. For yield seekers tolerant of some volatility, AGNC merits a spot in diversified portfolios, but pair it with rate hedges to mitigate downsides.

Blue Owl Capital (OBDC)

Blue Owl Capital (NYSE:OBDC) operates as a business development company (BDC)  lending to mid-market tech and software firms. It provides senior secured loans, generating stable interest income funneled into quarterly dividends. OBDC yields about 11.8%, reflecting its $13 billion portfolio of floating-rate debt.

Analysts from RBC Capital issued a buy rating while Ladenburg Thalmann put out a strong buy rating in August, lifting the consensus price target to $15.68 — a 27% premium over recent trading levels. Key drivers include portfolio yield expansion to 11.2% from rate resets, with non-accrual rates below 1%, signaling strong borrower health. 

OBDC’s focus on recession-resistant tech subsectors like cybersecurity has delivered 8% net investment income growth year-over-year. Recent originations hit $1.2 billion, targeting underserved borrowers amid tight bank lending. With EPS projections at $1.75 for 2025, the dividend looks covered 1.3 times, according to analyst models.

Agreement with analyst sentiment makes sense for income-oriented investors. OBDC’s floating rates hedge inflation, and its BBB credit rating from Fitch underscores stability. Risks linger in tech slowdowns — portfolio concentration could amplify defaults if venture funding dries up. Still, diversified holdings and conservative leverage (0.8x debt-to-equity) tilt the scales toward a buy recommendation. OBDC stock is a solid pick for those eyeing balanced yield with moderate growth.

TXO Partners (TXO)

TXO Partners (NYSE:TXO), an upstream energy partnership, acquires and optimizes conventional oil and gas assets in the Permian, San Juan, and Williston basins. It emphasizes low-risk development and divestitures for cash returns, distributing proceeds quarterly. Yielding roughly 15.6% at current prices, TXO benefits from $500 million in proved reserves.

Stifel and Raymond James analysts reiterated buy calls recently, with targets averaging $21.50 per share — over 50% above spot prices. They highlight TXO’s 2025 distribution guidance of $0.35 to $0.40 per unit, up 10% from prior year, fueled by Elm Coulee field expansions yielding 20% internal rate returns at current oil prices. The partnership’s Mancos Shale pilots show promise, with 15% reserve growth expected. 

Second-quarter results beat estimates, with production up 12% to 5,000 barrels of oil equivalent per day and free cash flow covering payouts 1.5 times. With West Texas Intermediate at around $61 per barrel, TXO’s operations remain profitable.

Investors can feel comfortable with analyst calls, but with caution. TXO’s mature assets dodge wildcat risks, and hedging 70% of output stabilizes cash flows. Yet, commodity volatility looms large — prolonged low prices could trim distributions. For energy bulls betting on steady demand, TXO offers compelling value; others might wait for clearer geopolitics as OPEC+ nations begin to ramp up production. Overall, the buy thesis remains intact at current prices.