Annaly Capital and others mask risks with high dividend yields

Falling share prices often inflate dividend yields

Dividend yield is calculated by dividing the annual dividend by the current share price. A declining share price can inflate the yield even if the company’s outlook weakens.

A stock yielding 16% can still produce a negative total return if its market value falls sharply or its dividend is cut. Conversely, a lower-yielding stock can create greater wealth when earnings grow and share prices rise.

Five-year price returns cited in the analysis exclude dividends and distributions and do not represent total investment returns. These figures should not be treated as total investment returns.

Annaly Capital and AGNC Investment lead mortgage REIT sector

Several U.S. stocks provide dividend yields above 10%, led by mortgage REIT Annaly Capital Management with a 16.24% yield and AGNC Investment with a 16.09% yield. Annaly Capital Management has a market capitalization of $14.5 billion.

Annaly Capital Management’s payout ratio is 75.83% based on earnings per share, its share price has fallen 45.3% over the past five years, and its annual dividend growth is negative 3.8%. AGNC Investment’s payout ratio is 77% based on earnings per share, its shares have fallen 44.7% over the past five years, and its dividend growth has been flat.

The two companies work within the mortgage‑investment arena, where changes in interest rates, funding expenses, and the valuation of mortgage‑backed securities can significantly affect earnings and book values. Their high yields partly stem from falling share prices that boost yields even when distributions stay constant.

Business development companies report high payout ratios

Business development companies include Blackstone Secured Lending Fund, Blue Owl Capital Corporation, and Ares Capital Corporation, which have payout ratios of 243.24%, 240.58%, and 138% of earnings per share respectively. The Economic Times reported on October 30, 2026, that Blackstone Secured Lending Fund, Blue Owl Capital Corporation, and Ares Capital Corporation maintain high dividend yields.

Blackstone Secured Lending Fund reports a payout ratio of 243.24% of earnings per share, while its share price has declined 14.5% over five years. Blue Owl Capital Corporation shows a payout ratio of 240.58% and a 27.1% share price drop over the same period. Ares Capital Corporation maintains a payout ratio of 138% against an 8.6% share price decline over five years.

These metrics remain critical for investors evaluating business development companies because earnings fluctuate based on interest rates and general economic conditions. The Economic Times noted that these companies currently offer dividend yields of 13.1% for Blackstone, 12% for Blue Owl, and 10.04% for Ares.

Energy and consumer stocks show mixed five-year returns

Western Midstream Partners provides an 8.12% yield and has achieved a 108.9% share-price gain over the past five years. Plains All American Pipeline offers a dividend yield of 6.3% and its shares have advanced 132.6% over the past five years. MPLX carries a 7.2% dividend yield and its stock has risen 94.8% in the past five years.

Gaming and Leisure Properties provides an 8.31% dividend yield and its share price has dropped 20% over five years. VICI Properties offers a 7.5% yield and its shares have declined 22.2% over the past five years. General Mills offers a dividend yield of 7.32% and its shares have declined 47.2% over the past five years. Kraft Heinz has a dividend yield of 6.69% and its share price has dropped 39.5% during the five-year period.

Treasury yields remain lower than high-yield dividend payouts

The U.S. 10-year Treasury yield was 4.98% on October 29, 2026. Treasury bond, which yielded 4.98% on October 29, 2026. Some financial firms deliver double-digit yields as high as 16%, which is more than three times the return on the 10-year U.S. Treasury bond.

Wall Street monitors dividend trends in least popular sectors

24/7 Wall St. reported on five high-yield dividend stocks that are currently found within Wall Street's least popular sectors. On October 28, 2026, 24/7 Wall St. identified five high-yield dividend stocks within these sectors. Through October 29, 2026, the S&P 500 rose 12.8% year-to-date, the Nasdaq Composite gained 12.7%, the Dow Jones Industrial Average increased 8.9%, and the Russell 2000 advanced 15.2%.