Jump On These Over 9% Dividend Yielding Stocks Today

The recent inflation read came in below market expectations at 2.8%. This was seen as a positive sign, and most stocks opened higher. However, the recovery in these stocks is still on shaky ground. Dividend stocks with very high yields can be a much better bet if inflation unexpectedly trends significantly lower in the coming months.

This is mainly because lower inflation would force the Federal Reserve to lower rates, especially when combined with Trump’s calls for lower interest rates. In turn, this will make investors more hungry for yields. 

All of this should result in dividend stocks becoming much more attractive. High-yield dividend stocks can also stabilize your portfolio during a broader market downturn as they have underlying businesses with solid cash flow. Plus, if you have an income-focused retirement portfolio, high-yield dividends can provide the necessary cash flow.

9% is a sweet spot if you’re looking for ultra-high-yield dividend stocks. This is well above typical market yields, and it avoids being too extreme. Most 15%-plus dividend yields are usually too good to be true, and you’re better off avoiding them.

24/7 Wall St. Key Points:

• High-yield dividend stocks can outperform the market this year as tech and growth stocks decline.
• Investors should also become hungry for more yield as lower inflation sends interest rates lower.
• Plus, many who are cashing out on their growth bets are rotating into high-yield dividend stocks. The ones in this article yield over 9%.
• The right cash-back credit card can earn you hundreds or thousands of dollars a year for free. Our top pick pays up to 5% cash back, a $200 bonus, and a $0 annual fee. Click here to apply now (Sponsor)

BB Seguridade (BBSEY)

BB Seguridade (OTCMKTS:BBSEY) is a Brazilian insurance holding company that has one of the highest dividend yields in the financial services sector at 9.34%. This is a relatively new standalone entity, but its operations through its parent Banco do Brasil date back over two decades.

The company dominates many high-margin insurance categories in Brazil, and this has allowed it to post a free cash flow margin of 92.43% in Q4 2024. This is better than 97.31% of its peers. It also has no debt and has a 3-year revenue growth rate of 15.9% annually. The 3-year EPS growth rate (minus non-recurring items) is at 31.3%.

Sales are expected to contract by 1% this year and then grow by 5.5% next year. EPS growth isn’t expected since margins are already quite stellar.

The 3-year dividend growth rate is at 38.6%.

The average price target of $7 only implies 4.63% upside, but you don’t really need much upside if you’re getting such solid yields and safety.

Delek Logistics Partners (DKL)

Delek Logistics Partners (NYSE:DKL) is a midstream energy master limited partnership. It has a network of crude oil pipelines and storage facilities.

Midstream companies are known for being stable no matter the commodity prices, and they’re often cash cows. Delek Logistics has some of the highest dividends among midstream companies. It has a dividend yield of 10.7%. The beta here is very low at 0.39.

36% of EBITDA comes from long-term contracts with Delek (parent) and 64% from third-party customers. It has 10 years of dividend growth with a 5-year dividend growth rate of 4.91%.

It has a high payout ratio of almost 146%, but EPS is expected to grow from $3.77 this year to over $5 in 2027. The company should be able to maintain the dividends, and its management has explicitly stated its intention to continue growing distributions in 2025. The company expects to achieve a coverage ratio of approximately 1.3x by year-end 2025. It also expects $480 million to $520 million in adjusted EBITDA.

The consensus price target of $44.25 implies 8.2% upside potential from here.

PennantPark Floating Rate Capital (PFLT)

PennantPark Floating Rate Capital (NYSE:PFLT) is a Business Development Company (BDC) that invests in floating-rate loans and debt instruments. It targets U.S. middle-market companies.

These are typically businesses that have annual sales of $50 million to $1 billion. The portfolio mainly consists of senior secured floating rate loans. This includes first-lien secured debt, second-lien secured debt, and subordinated debt, along with some occasional equity investments. PennantPark’s loans are variable-rate investments, so interest rates periodically adjust based on a floating base lending rate plus a fixed spread. This provides built-in protection if interest rates rise, though interest income could fall if rates fall, so that’s mainly why PFLT is third on this list.

The company’s middle-market borrowers can be hit hard during a recession, but if you only want yield, this isn’t a bad stock to consider.

The dividend yield is at 11.18%, and the 3-year dividend growth rate is relatively low at 2.6%. The company is solidly profitable, with a net margin of 95.4% as of Q4 2024. Analysts expect 12.06% EPS growth in FY2025 before declining by 1.82% and 1.29% in the next two years.

The valuation is quite discounted at current levels due to the drawbacks of this business. BDCs are vulnerable during recessions, so you’re only paying 8.3 times forward earnings for PFLT. The stock trades at a 25% discount from its peak.

The consensus price target of $12 implies 9% upside potential.

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