Investors enter the market with a common goal of earning a return, yet no approach can guarantee success. Even so, the pursuit continues as countless strategies aim to build portfolios with the potential for strong results.
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One perennially popular strategy is buying into high-yield dividend stocks. These names attract attention by offering investors a steady income stream, though the reliability of that income can vary depending on the sector and economic backdrop. For income-focused investors, the appeal comes from double-digit yields that can outpace inflation and deliver a meaningful return.
For investors seeking the best results from a dividend strategy, the key is balancing high yields with sustainable payout coverage. While there is no way to invest risk-free, REITs with multi-year records of paying dividends – even if occasionally adjusted – often stand out as worthwhile candidates. And when the yield approaches 10% or better, it’s bound to spark investor interest.
We’ve dipped into the TipRanks database to find a pair of stocks that fit this bill – sound dividend payment histories combined with yields of at least 10%. And better yet, both stocks have Strong Buy ratings from the Street’s analysts.
Global Net Lease (GNL)
The first dividend stock we’ll look at here is Global Net Lease, a real estate investment trust (REIT) with a focus on commercial properties on net lease agreements. Global Net Lease is a major player in this niche, with a market cap of $1.7 billion and more than 900 properties in its investment portfolio.
REITs generate their income through the acquisition, ownership, and management of various properties. As noted, Global Net Lease concentrates on commercial properties; under the net lease structure, the company acts as landlord of these properties, while the tenants agree to pay certain costs – such as taxes, maintenance, or insurance – in addition to the rent.
Global Net Lease’s portfolio is composed of such net lease properties in the US as well as in Western and Northern Europe. The company has its largest geographic presence in the Midwest and Southeast regions of the US. Auto manufacturing and financial services properties are featured in the portfolio, with each area making up 10% of the total. The company boasts that it has a 98% occupancy rate in its properties, and a weighted-average remaining lease term of 6.2 years.
In its last quarterly report, covering 2Q25, Global Net Lease discussed its recent moves to divest itself of multi-tenant retail properties. This action was taken to simplify the company’s operations, improve the overall portfolio quality, and drive greater efficiencies in finance and management. The company received a credit upgrade from S&P Global after completing the sales of the multi-tenant properties. At the end of the quarter, on June 30, the company had $1 billion in total liquidity.
Of particular interest to dividend investors, Global Net Lease reported an adjusted funds from operations (AFFO) of $53.1 million, or 24 cents per share, in Q2. This is a key metric for REITs, and it directly supports the regular dividend payments. The company last paid out its dividend on July 16, at a rate of 19 cents per common share. Looking ahead, the dividend annualizes to 76 cents per share and gives a forward yield of 10%. Global Net Lease has been paying out quarterly dividends since 2015, with the only major alteration in the payment being a switch from monthly to quarterly in 2019.
This REIT has caught the eye of analyst Upal Rana, from KeyBanc. Rana sees the improved efficiency as a net-plus, and notes that the dividend should be attractive, writing, “We expect quarterly earnings to trough in 2H25 given a significant amount of capital recycling is compete and additional operational efficiencies through G&A savings and reduced capex should bolster the Company’s future cash flow and earnings growth, in our view. With the stock trading at a FY25 AFFO/sh multiple discount of 18.3% at 11.2x vs. the Net Lease subsector average of 13.7x, we think the valuation gap allows room for multiple expansion. In addition, the stock’s dividend yield and AFFO payout ratio of 90% (right-sized by 31% in February 2025 in conjunction with the multi-tenant portfolio sale) offer investors attractive current income while they wait.”
The analyst goes on to rate the stock as Overweight (Buy), and sets a price target of $9 to suggest a one-year upside potential of 14%. Add in the dividend yield, the total one-year return here reaches 24%. (To watch Rana’s track record, click here)
This stock has earned its Strong Buy consensus rating from 4 recent reviews, all positive. The shares are trading for $7.87, and the average target price of $10 implies a gain of 27% by this time next year. (See GNL stock forecast)
New York Mortgage Trust (NYMT)
Next up is another REIT, New York Mortgage Trust. Where Global Net Lease, above, follows a net lease strategy and directly owns the properties it leases out, New York Mortgage Trust follows a different path – but one that REITs frequently take. The company acts on the finance end, acquiring, investing in, and managing financial assets, primarily mortgage-related assets.
A look at the company’s portfolio composition and its allocation of assets shows that the largest portion, 38% of the total, is made up of Agency RMBS, or residential mortgage-backed securities. The second-largest portion, at 37% of the total, is made up of residential mortgage loans. Another 17% of the portfolio is comprised of structured multifamily investments and ‘other’ assets, while 8% of the total is comprised of non-agency RMBS assets. The company defines its strategy as targeting mortgage-related and single-family housing-related assets that contain credit and interest rate risk, with the goal of providing attractive risk-adjusted returns in all economic conditions.
Following this strategy, New York Mortgage Trust has built up an investment portfolio valued at $8.6 billion. The largest part of this, consisting of $8.13 billion in allocated capital, is in various assets related to single-family properties. Multifamily property assets and corporate/other assets make up much smaller parts of the portfolio, with $302 million and $177.5 million in allocated capital, respectively.
Turning to the company’s financial results, last reported for 2Q25, we note that New York Mortgage Trust reported a net interest income of $36.45 million. This figure was accompanied by a key metric, earnings available for distribution per common share. The earnings available for distribution came to 22 cents per common share, which was enough to fully fund the regular dividend of 20 cents per share.
That dividend annualizes to 80 cents per common share and gives a forward yield of 11%. New York Mortgage Trust has been making reliable dividend payments since 2004, with the exception of one quarterly payment skipped at the beginning of 2020 during the COVID pandemic.
Covering this stock for B. Riley, analyst Randy Binner takes an upbeat position. He notes that the company has positioned itself for growth going forward and writes, “Management’s repositioning of the portfolio should support EPS, and we model dividend coverage in 2025 and 2026. Continued acquisition growth in 2025 should keep net interest income growing, while expense management and certain divestitures should improve margins. Outside of agency RMBS, management continues to move into business purpose loans (BPL), which is highlighted through the acquisition of the remaining 50% of Constructive Loans. Given good overall growth in the quarter and the outlook for increased mortgage acquisitions, we have adjusted our forward estimates higher; FY25E and FY26E EPS moved from $0.80/$0.80 to $0.85/$0.90, respectively.”
Binner’s stance backs up his Buy rating on NYMT, while his $9 price target implies that the stock will gain 25% in the months ahead. Add in the dividend yield, and that one-year return has potential to reach 36%. (To watch Binner’s track record, click here)
There are 4 recent analyst reviews on record for New York Mortgage Trust, and the split, 3 to 1 in favor of Buy over Hold, adds up to a Strong Buy consensus rating. The shares have a selling price of $7.22, and the $7.81 average target price suggests an 8% upside potential in the next 12 months. (See NYMT stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.