Looking for High-Yield Dividend Stocks? Citizens JMP Suggests 2 Names — One Offers a Massive 13% Yield

As we head into 2026, it’s only natural to want to set up the best possible portfolio for the new year. The key here is returns – we’ve seen bullish markets for several years now, and investors want to keep up that momentum. Dividend stocks can make a clear contribution.

Among the higher-yield corners of the market, business development companies (BDCs) stand out. These firms provide financing to small- and medium-sized businesses that often fall outside the traditional banking system, and like REITs, they benefit from favorable tax treatment when they distribute a large share of earnings to shareholders. That leads to high and usually reliable dividends.

Covering the BDC space for Citizens JMP, analyst Brian McKenna notes that despite recent underperformance, the fundamentals remain intact.

“Both the Alts and BDCs have underperformed over the past several months, although as we have written about at length, underlying fundamentals remain generally healthy for many (vs. perceptions across the marketplace today),” McKenna said. “We think the recent underperformance across the industry is largely unwarranted, specifically as the broader markets continue to trade at/near all-time highs, and we see (yet again) another compelling longer-term buying opportunity in these stocks.”

For investors seeking out high-yield dividend payers, this is exactly what is needed: an attractive point of entry and strong dividend. McKenna has two names to offer, including one with a massive yield of 13%. Let’s open up the TipRanks database and give them a closer look so we can find out what else they bring to the table.

Trinity Capital (TRIN)

The first company on our list, Trinity Capital, is an alternative asset manager that is structured for business purposes as an internally managed BDC. The company aims to provide its client firms with access to the credit market, and its investors with stable and consistent returns. Trinity invests its capital in a wide range of target firms, across several categories: tech, equipment, life sciences, sponsor finance, and asset-based lending. Since its founding in 2008, Trinity has poured some $5.1 billion into its investments. The company is based in Phoenix and operates in the US and Europe.

Trinity currently has $2.6 billion in assets under management, and boasts a market cap of $1.15 billion. The company makes careful vetting of its investment targets, keeping in mind its constant goal of maintaining a sound return for investors. This is usually returned via dividend distributions, and as of September this year Trinity has returned a cumulative $411 million through those payments.

The most recent dividend payment was declared on September 17 and paid out on October 15. The payment, of 51 cents per common share, annualizes to $2.04 and gives a forward yield of 13.5%. Trinity has been paying out dividends since 2021, has never missed a quarterly payment, and does have a history of adding special or supplemental dividends when appropriate.

In its last earnings report, covering 3Q25, Trinity reported a total investment income of $75.6 million. This was up more than 22% year-over-year and beat the forecast by almost $1.2 million. At the bottom line, Trinity reported a net investment income of $37 million, which translated to a per-share value of 52 cents. The company’s net investment income was up 26% year-over-year, although the 52-cent per-share value missed expectations by a penny. We should note that the NII-per-share was sufficient to fully cover the last dividend.

For Citizens analyst McKenna, this company offers a combination of growth and a solid dividend. He writes, “Given several company-specific drivers at Trinity, the outlook for earnings growth and ROEs remains healthy. Specifically, we currently model 1% YOY growth in NII per share (and our 2026E NII totals $2.10 per share) and an 15.5% ROE in 2026, which should ultimately drive solid dividend coverage over the next 12+ months (we think TRIN’s dividend coverage ratio troughed in 2025 at ~102%). Thus, we believe the current $0.51 per share quarterly dividend, or $2.04 per share annually (implying a 103% dividend coverage ratio), remains rock solid, equating to an attractive (and elevated) yield of 13.7% (as of writing), during a period when dividend coverage ratios for many in the group are set to decline notably, and in some cases, future dividends are potentially at risk depending on the magnitude of future base rates cuts (among other macro factors)…”

The 5-star analyst sums up with an optimistic outlook: “Given what we view to be a healthy outlook and accelerating momentum into 2026, we expect this strong outperformance will persist moving forward.”

These comments back up McKenna’s Outperform (i.e., Buy) rating on the shares, while his $17.50 price target points toward a 16% upside in the coming year. Add in the dividend yield, and this stock’s one-year return can exceed 29%. (To watch McKenna’s track record, click here)

Overall, Trinity has earned a Moderate Buy consensus rating from the Street, based on 6 recent reviews that include 5 Buys and 1 Sell. The stock is priced at $15.12 and its $16.50 average price target indicates a one-year gain of 9%. (See TRIN stock forecast)

Blue Owl Technology Finance (OTF)

Next on our list, Blue Owl Technology Finance, is a large, tech-focused BDC that was formed to provide credit to tech-related firms. The company originates and makes loans and makes equity investments in its target firms, and aims mainly at enterprise software companies. Blue Owl Tech Finance is externally managed by an affiliate of the larger Blue Owl Capital. This link to a larger asset manager gives the BDC access to solid backing.

The BDC focuses on US-based upper middle-market tech firms. Its investment strategy prioritizes senior secured or unsecured loans, subordinated loans or mezzanine loans, and also equity-related securities. Blue Owl Tech Finance aims to prioritize long-term credit performance for maximum returns. This includes setting a diversified portfolio and weighting it toward defensive industries that are non-cyclical.

Blue Owl Tech’s portfolio currently stands at $12.9 billion in fair value, with 77% of it being in first-lien senior secured loans. The portfolio features 97% floating-rate debt investments and 3% fixed-rate. Nearly three quarters (74%) is located in three US regions: West, South, Northeast. Systems software makes up 20% of the portfolio.

In its last reported financial quarter, 3Q25, Blue Owl Tech reported two key metrics: the company reported a GAAP net investment income of 28 cents per share and an adjusted net investment income of 32 cents per share. This quarter marked the company’s first full quarter as a publicly listed firm. Blue Owl Tech declared a dividend of 35 cents per share to be paid on January 15. In addition, the company has declared five special dividends of 5 cents each, with the next one scheduled for payment on January 7. The total dividend to be paid in January, 40 cents per common share, annualizes to $1.60 and gives a forward yield of 11%.

McKenna, in following this BDC, lays out a course that he sees it following, one that will lead to continued success.

“Given the strong trajectory of NII over the next year (i.e., NII per share will be growing vs. the 2H25 quarterly level, not declining), we think the company will be roughly earning the regular quarterly dividend ($0.35 per share) exiting 2026, with even greater dividend coverage beyond that as leverage and the size of investment portfolio inevitably normalize to the longer-term targets, a clear outlier within the publicly-traded BDC sector. We also highlight that the company has a healthy track record of delivering unrealized/realized gains across the portfolio (specifically tied to equity investments), so any incremental GAAP earnings above and beyond NII will be accretive to GAAP NI ROEs, as well as NAV,” McKenna noted.

Summing up, the Citizens analyst says of Blue Owl Tech: “Bottom line, as leverage and the size of the investment portfolio normalize over time, we anticipate the company will generate ~10%+ ROEs through the cycle (both on an NII and GAAP net income basis), potentially even above that depending on the level of appreciation/upside that occurs within the equity portfolio, which we think will be the biggest driver of OTF’s valuation multiple over time… We believe OTF is an excellent way to gain exposure to the asset class, specifically some of the largest and most innovative companies in the private ecosystem.”

Quantifying his stance on OTF, McKenna rates the stock as Outperform (i.e., Buy), with a $17 price target that suggests an upside of 20% by this time next year. The one-year return can hit 31% when the dividend yield is added in.

Overall, Blue Owl Tech’s Moderate Buy consensus rating is supported by 9 analyst reviews that include 4 Buys and 5 Holds. The shares are priced at $14.21, and the $15.78 average price target implies a 12-month gain of 11%. (See OTF stock forecast)

To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a tool that unites all of TipRanks’ equity insights.

Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.