4 Ultra-High-Yield Dividend Stocks Paying 10%+ You Can Trust

Balancing Reward and Risk

Ultra-high yield stocks, offering dividends above 10%, present compelling opportunities for income-focused investors, particularly in a volatile market environment. These stocks can generate significant cash flow, ideal for retirees or those seeking passive income, and often come from sectors like real estate investment trusts (REITs), energy, or covered call ETFs, which benefit from stable cash flows or strategic income strategies. 

Analyst projections suggest high-yield investments can outperform in uncertain markets, providing a hedge against inflation. However, risks are substantial: high yields may signal unsustainable payouts, declining stock prices, or sector-specific vulnerabilities like real estate downturns or energy price swings. 

Regulatory pressures and economic contraction further amplify risks, requiring investors to look carefully at their choices to ensure dividend safety and capital preservation. The following four ultra-high dividend stocks with yields above 10% offer income, capital appreciation potential, and a degree of safety not usually found in stocks with such rich payouts. 

Goldman Sachs Nasdaq-100 Premium Income ETF (GPIQ)

The Goldman Sachs Nasdaq-100 Premium Income ETF (NASDAQ:GPIQ) offers a 10.4% yield, making it a compelling choice for investors seeking income with tech exposure. 

GPIQ employs a dynamic covered call strategy on Nasdaq-100 stocks, including Apple (NASDAQ:AAPL) and Microsoft (NASDAQ:MSFT). Its top 10 holdings account for 51.3% of its portfolio. 

Its last monthly dividend of $0.3883 and 0.29% expense ratio enhance its appeal, delivering consistent income with low costs. GPIQ’s focus on tech, with 53.6% sector allocation, aligns with AI and cloud growth trends, supporting its growth potential. Despite a 6.28% maximum drawdown, its moderate volatility and diversified holdings mitigate risk. 

GPIQ’s income stability and industry tailwinds make it a relatively safe high-yield option, though investors should monitor tech sector developments and market downturns that could impact its net asset value (NAV). 

Arbor Realty Trust (ABR)

Arbor Realty Trust (NYSE:ABR), a mortgage REIT yielding 14.9%, is a strong pick for investors seeking reliable high-yield income. ABR invests in multifamily, single-family rental, and commercial real estate loans, benefiting from diversified cash flows and a robust housing market. 

Its 13.6x estimated 2026 earnings multiple suggests undervaluation, even as it can support its dividend. ABR has offered consistent payouts over a decade, backed by conservative loan underwriting and strong management. The REIT originates small-balance loans that it sells to Fannie Mae, Freddie Mac, the Federal Housing Administration, and other government agencies.

The REIT’s focus on bridge and mezzanine financing meets demand for short-term capital, ensuring steady revenue. While real estate downturns or rising interest rates could pressure earnings, ABR’s diversified portfolio and resilient cash flows make it a trustworthy choice for income investors, provided they monitor economic cycles and default risks. 

JPMorgan Nasdaq Equity Premium Income ETF (JEPQ)

The JPMorgan Nasdaq Equity Premium Income ETF (NYSEARCA:JEPQ) yields 10.4%, offering a safe high-yield investment through its covered call strategy on Nasdaq-100 stocks. With 108 holdings, including Microsoft and Amazon (NASDAQ:AMZN), JEPQ balances tech growth with monthly income, appealing to investors seeking stability. Its 0.35% expense ratio is low for active management, and its 49.6% cumulative total return since inception in 2022 demonstrates resilience, though it trails the Invesco QQQ Trust Series 1 ETF‘s (NASDAQ:QQQ) returns due to capped upside from calls.

JEPQ’s use of equity-linked notes adds complexity, but it also enhances income. Managed by seasoned professionals,JEPQ helps mitigate volatility through active stock picking and ESG factors. 

Investors should be aware of variable payouts and tech sector risks, but JEPQ’s diversified approach makes it a reliable high-yield choice. 

Innovative Industrial Properties (IIPR)

Innovative Industrial Properties (NASDAQ:IIPR), a REIT yielding 13.1%, is a solid investment for high-yield seekers, focusing on cannabis-related real estate. IIPR leases properties to licensed cannabis operators, capitalizing on the growing legal cannabis market, projected to reach $73 billion by 2027. Its triple-net lease structure ensures stable rental income, with a 90% payout ratio supporting its $1.90 quarterly dividend. 

The marijuana REIT’s 2024 revenue was essentially flat, primarily due to certain properties it recaptured or sold since 2023. Yet IIPR continued to drive portfolio expansion, and its 15-year lease terms provide cash flow predictability. 

Despite cannabis industry regulatory risks and potential tenant defaults, IIPR’s diversified tenant base and strong balance sheet enhance safety. IIPR’s alignment with a potentially high-growth sector and consistent dividends make it a trustworthy high-yield pick, provided investors monitor legal and regulatory developments.

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