Investment firms Jefferies and BTIG have highlighted two high-yield dividend stocks offering yields close to 10%, significantly higher than the S&P 500 average. However, investing in such stocks requires careful consideration due to potential risks like dividend cuts or business challenges.
Blue Owl Capital Corporation (OBDC), managed by Blue Owl Credit Advisors, specializes in financing middle-market companies with a portfolio valued at $17.7 billion. The company reported an adjusted net investment income of $0.39 per share in Q1 2025, slightly below expectations. OBDC offers a dividend yield of 10.7%, making it an attractive option for income-focused investors.
Jefferies analyst Matthew Hurwit rates OBDC as a Buy, citing its large scale, prudent underwriting, and support from Blue Owl’s platform. Apollo Commercial Real Estate (ARI), a REIT managed by Apollo Global Management, operates in the US and Europe with a portfolio valued at $7.7 billion. ARI provides a forward yield of 10.4% and has shown agility in managing its portfolio amidst market volatility.
BTIG analyst Tom Catherwood rates ARI as a Buy, noting its institutional backing and strategic positioning in the UK/Europe. Despite a Hold consensus from broader analysts, both stocks present opportunities for investors seeking high-yield dividends.
— new from TipRanks