3 Dividend Stocks Paying 10%+ That Wall Street Calls a Buy

In July 2025, with US inflation holding steady at 2.7%, the typical risk-free rate of return of 4% to 5% may not seem as enticing for long-term investors. While treasuries are considered one of the safest investment options available, sometimes investors are looking for higher income opportunities that go beyond just safety.

Fortunately, there are certain stocks in the market that offer high yields without falling into the usual pitfalls of unsustainable payout ratios, overleveraged balance sheets, or declining stock prices. These stocks have been favored by Wall Street analysts, giving them added credibility and appeal to investors.

To identify these top dividend stocks with yields of 10% or more, I used Barchart’s Stock Screener with specific criteria in mind. The filters included a dividend payout ratio of 100% or below, an annual dividend yield of 10% or more, a market cap of $3 billion and above, and a current analyst rating of 3.5 (Moderate Buy) to 5 (Strong Buy) with eight or more analysts covering the stock.

After running the screen, four companies emerged, and I will discuss the top three starting with the highest yield stock:

1. AGNC Investment Corporation (NASDAQ: AGNC):
   AGNC is a mortgage real estate investment trust (REIT) that specializes in investing in government agency residential mortgage-backed securities (RMBS) guaranteed by Fannie Mae, Freddie Mac, and Ginnie Mae. This strategy helps AGNC eliminate credit default risks, allowing it to maintain one of the highest dividend yields in the REIT sector. The company pays a monthly dividend of 12 cents per share, totaling $1.44 annually, translating to a nearly 15% yield. AGNC stock has a moderate buy rating from 15 analysts with an average score of 4.07 and a high target price of $10.50.

2. Annaly Capital Management (NYSE: NLY):
   Annaly is also an RMBS that invests in non-agency mortgage assets, mortgage servicing rights, and other credit products, giving it a diverse portfolio mix. The company recently raised its quarterly dividend to 70 cents per share, or $2.80 annually, resulting in an approximate yield of 13%. Analysts rate NLY stock a moderate buy with an average score of 4.20 and a high target price of $23.

3. Blue Owl Capital Corporation (NYSE: OBDC):
   Blue Owl is a business development company (BDC) that focuses on lending to middle-market companies in the US. The company pays a 37-cent quarterly dividend plus 50% of its net investment income, resulting in a 10% forward yield. Additionally, Blue Owl paid $1.61 in dividends in the last twelve months, bringing its trailing twelve-month yield to around 11%. OBDC boasts a strong buy rating from analysts with an average score of 4.42 and a high target price of $18.

   It’s important to note that not all high-yield stocks are dividend traps. Companies like AGNC, Annaly, and Blue Owl offer investors the opportunity to receive high income without compromising on dividend sustainability. However, investors should always conduct thorough due diligence and stay informed about developments that may impact their investments. Remember, while Wall Street ratings can provide valuable insights, there is always some level of risk involved in investing.

   In conclusion, these high-yield dividend stocks present a unique opportunity for investors seeking income-generating assets in a low-interest-rate environment. By carefully evaluating the risks and rewards of each investment, investors can build a diversified portfolio that balances stability with high income potential.