24/7 Wall St. Insights

• With rates now officially heading lower, ultra-high-yield stocks will be in big demand.
• Expect at least another 50 basis points of cuts this year.
• Sit back and let dividends do the heavy lifting for a simple, steady path to serious wealth creation over time. Grab a free copy of “7 Things I Demand in a Dividend Stock,” plus get our two best dividend stocks to own today. Access two legendary, high-yield dividend stocks Wall Street loves.

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

While most of Wall Street focuses on large and mega-cap stocks, as they provide a degree of safety and liquidity, many investors are limited in the number of shares they can buy. Many of the most significant public companies, especially the technology giants, trade at prices up to $1,000 per share, while many are in the low to mid-hundreds. It is hard to get decent share count leverage at those steep prices.

Many investors, especially more aggressive traders, look at lower-priced stocks to make good money and get a higher share count. That can help the decision-making process, especially when you are on to a winner, as you can always sell and keep half.

For low-price stock skeptics, many of the biggest companies in the world, including Apple, Amazon, Netflix, and Nvidia, all traded in the single digits at one time.

We screened our 24/7 Wall St. research database, looking for companies trading under $10 that pay double-digit ultra-high-yield dividends and could offer patient investors enormous returns for the rest of 2024 and beyond. Five companies hit our screens, and all look like solid ideas, especially given the lower-rate environment.

BrightSpire Capital

With a massive 10.51% dividend and trading under $7, this company could be a total return home run. BrightSpire Capital Inc. (NYSE: BRSP) operates as a commercial real estate (CRE) credit real estate investment trust in the United States and Europe.

The company operates through:

• Senior and Mezzanine Loans and Preferred Equity
• Net Leased and Other Real Estate
• Corporate and Other segments

It focuses on originating, acquiring, financing, and managing a diversified portfolio of CRE debt investments, including first mortgage loans, senior loans, debt securities, mezzanine loans, preferred equity investments, and net leased properties.

The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders.

Fortitude Gold

Gold is printing all-time highs, and with a 10.55% dividend, this could be a great way to play the sector. Fortitude Gold Corp. (OTC: FTCO) is a U.S.-based gold producer targeting projects with low operating costs, high margins, and strong returns on capital.

The company’s strategy is to grow organically, remain debt-free, and distribute substantial dividends.

Fortitude Gold’s Nevada Mining Unit consists of seven high-grade gold properties in the Walker Lane Mineral Belt and an eighth high-grade gold property in west central Nevada.

The Isabella Pearl gold mine is currently in production and is located on the Isabella Pearl mineralized trend. Nevada is among the world’s premier mining-friendly jurisdictions. The company recently announced that it has received all regulatory approvals and permits to mine deeper in its Isabella Pearl deposit.

Global Net Lease

Off the radar and offering a huge 12.42% dividend, this looks like a total return winner. Global Net Lease Inc. (NYSE: GNL) is a publicly traded real estate investment trust focused on acquiring a diversified global portfolio of commercial properties. It emphasizes sale-leaseback transactions involving single-tenant, mission-critical, income-producing net-leased assets across the United States and Western and Northern Europe.

Last month, the company announced continued progress in its 2024 strategic disposition plan with the sales of The Plant Shopping Center in San Jose, California, for $95 million and the Foster Wheeler office property in Shinfield Park, Reading, United Kingdom, for over $27 million. As of August 31, 2024, GNL has closed or secured agreements for dispositions totaling $854 million at a cash cap rate of 7.2%.

GNL had owned the 366,000-square-foot Foster Wheeler Office property for nearly eight years and sold it when the tenant’s lease expired in mid-August, having collected 100% of the rent under the lease term. The property sale will further reduce GNL’s office exposure by approximately 100 basis points, decreasing total office exposure to 19% of the total portfolio’s straight-line rent.

New York Mortgage Trust

While well known to many ultra-high-yield investors, this solid company offers an 11.70 dividend and enormous upside potential. New York Mortgage Trust Inc. (NASDAQ: NYMT) acquires, invests in, finances, and manages mortgage-related single-family and multi-family residential assets in the United States.

Its targeted investments include:

• Residential loans, including business-purpose loans
• Structured multi-family property investments, such as preferred equity
• Mezzanine loans to owners of multi-family properties
• Non-agency residential mortgage-backed securities (RMBS)
• Agency RMBS
• Commercial mortgage-backed securities (CMBS)
• Single-family rental properties, and
• Other mortgage, residential housing, and credit-related assets

Triple Point Venture Growth BDC

This company looks like a potential takeover candidate and pays a gigantic 16.6% dividend. Triple Point Venture Growth BDC Corp. (NYSE: TPVG) is a business development company specializing in investments in venture capital-backed companies at the growth stage investments.

The company provides debt financing to venture growth space companies, which includes:

• Growth capital loans
• Secured and customized loans
• Equipment financings
• Revolving loans
• Direct equity investments

The fund seeks to invest in e-commerce, entertainment, technology, and life sciences.

Within technology, the areas of focus include:

• Security, wireless communication equipment network system and software
• Business applications software
• Conferencing equipment/services
• Big data, cloud computing, and data storage,
• Electronics
• Energy efficiency
• Hardware
• Information services, internet and media, networking, semiconductors, software, software as a service, and other technology-related subsectors

Within life sciences, the areas of focus include:

• Biotechnology,
• Biofuels/biomass
• Diagnostic testing and bioinformatics
• Drug delivery
• Drug discovery,
• Healthcare information systems
• Healthcare services
• Medical, surgical, and therapeutic devices
• Pharmaceuticals and other life science-related subsectors

Five Highest-Yielding Dividend Kings That Passive Income Investors Can Hold for Decades

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.