Office Properties Income Trust Lost Its Dividend. These 5 Stocks Show Warning Signs

A double-digit yield is only worth what the company can keep paying, and shareholders of Office Properties Income Trust found that out the hard way. The office landlord’s Chapter 11 reorganization plan was confirmed on April 22, 2026, and it reported negative shareholders’ equity of about $630.6 million. Its dividend has effectively been eliminated, and common shareholders now face the risk of being wiped out, while the five stocks below still pay dividends, each showing warning signs.

You can test this yourself: a dividend becomes unsustainable when the right earnings measure no longer covers it, when cash flow comes up short, or when new debt and share sales are filling the gap. For property REITs, that measure is AFFO. For mortgage REITs, it is earnings available for distribution (EAD), with book value as the cushion behind the payout. (Seven warning signs that a big yield is about to be cut are cataloged in a free dividend trap report, and most of the names below check more than one box.)

Orchid Island Capital (ORC): A 23.8% Yield Propped Up by a Falling Price

Orchid Island Capital (NYSE:ORC) pays $0.10 a month, or $1.20 a year. At the recent $5.05 share price, that’s about a 23.8% yield. Monthly checks plus a yield above 20% are hard for income investors to ignore.

Much of that yield comes from a falling stock. Shares are down 19.31% this year and 47.22% over five years. Orchid already cut its monthly payout from $0.12 to $0.10 in April. In Q3, it lost $0.90 per share on a GAAP basis while paying $0.30 in dividends. The loss came mainly from $231.72 million in losses on mortgage bonds (RMBS) and hedges. Book value per share fell $1.20 to $6.02, and leverage rose to 8.8x from 7.4x.

The company’s chief executive said its goal was to “sustain the dividend,” and hedges now cover close to 100% of its borrowing. Calmer interest rates would give the payout room to last. Another bond selloff would leave very little.

Invesco Mortgage Capital (IVR): A 26% Yield After a Long String of Resets

Invesco Mortgage Capital (NYSE:IVR) pays $0.12 a month, or $1.44 a year. With shares at $5.54, that is a yield of about 26%.

That yield grew as the stock fell 22.68% this year. In the latest reported quarter, EAD of $0.50 covered the $0.36 quarterly dividend. But EAD missed the $0.52 consensus, the gap between what it earns and what it pays to borrow narrowed to 2.82% from 3.05%, and book value slipped to $8.03. Invesco also sold 14,847,506 new shares for $118.0 million, which reduces each existing shareholder’s slice of future dividends. Invesco has adjusted the payout many times, including a drop from $0.50 to $0.02 in 2020.

Q3 results, which cover the quarter when mortgage bonds sold off across the sector, are the next test. Watch whether EAD still clears the dividend.

Adamas Trust (ADAM): A Freshly Raised Dividend With No Cushion

Adamas Trust (NASDAQ:ADAM) is a mortgage REIT. It was once known as New York Mortgage Trust and now trades under a new ticker. It raised its quarterly dividend 11.1% to $0.30, a stated yield of 15.4%. This yield comes from a bigger payout. The stock is actually up 6.58% this year.

Coverage is the problem. Adjusted EAD of $0.30 per share exactly matched the new dividend, leaving nothing to spare. On a GAAP basis, the company lost $170.98 million, or $1.89 per share, and book value fell 21.9% in a single quarter to $7.93. It also sold $90.0 million of bonds paying 9.600% due 2031. That is expensive money for a business that earns the difference between its asset yields and its borrowing costs.

Annaly Capital Management (NLY): The Blue Chip With a Thin Margin

Annaly Capital Management (NYSE:NLY) pays $0.75 a quarter. With shares at $18.40, that is a yield of about 16.3%, up from $0.70 earlier this year.

Q3 EAD of $0.80 covered the dividend by just $0.05. Book value per share fell 11.4% to $17.86, GAAP leverage rose to 8.0x from 7.4x, and Annaly raised $757 million by selling new shares. Annaly has adjusted the payout before, including a 2020 cut.

Management sounds confident. The company’s chief executive said, “We outearned in Q3. We expect to outearn in Q4, and we will see how 2027 evolves.” Income investors should take note of that last point.

Global Net Lease (GNL): A History of Cuts and a Thin AFFO Cushion

Global Net Lease (NYSE:GNL) pays $0.19 a quarter, or $0.76 a year. With shares at $6.98, that is a yield of about 10.9%.

For a property REIT like this one, AFFO is the right measure. The dividend is barely covered. Full-year AFFO guidance of $0.82 to $0.85 per share sits below the $0.99 the company earned in 2025. Revenue fell 9.9% as the company sold properties. Its debt comes due in an average of just 2.7 years, and office buildings still make up 25% of its rent. Since 2023, the payout has fallen from $0.40 to $0.354, then to $0.275, and now to $0.19.

Occupancy is 97%, net debt fell $629.8 million from a year earlier, and the Modiv Industrial deal is projected to be 4% accretive to AFFO per share. How smoothly it refinances its debt will decide whether the buffer holds.

Check Coverage Before You Chase the Yield

Dividend cuts rarely come alone. Stocks usually fall with them, so the income you were counting on can end up costing you principal. Each of these companies could keep paying if interest rates settle down, but a high yield alone is never a reason to buy. Check coverage, book value, and leverage first.

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