From Yahoo Finance: 2025-05-11 13:48:00

High-yield dividend stocks are offering payouts nearly 7 times higher than the S&P 500 average. Jefferies and BTIG recommend two with yields approaching 10%. However, high-yield stocks come with risks like potential dividend cuts. Checking the TipRanks database reveals Wall Street’s stance on these picks.

Blue Owl Capital Corporation (OBDC) is a Business Development Company specializing in financing middle-market companies. With a portfolio of 236 businesses valued at $17.7 billion, OBDC focuses on senior secured loans and has an average investment size of $75 million. Financially, the company reported adjusted net investment income of $0.39 per share in Q1 2025.

Apollo Commercial Real Estate (ARI) is a REIT investing in commercial real estate-related debt investments. Externally managed by Apollo Global Management, ARI’s portfolio includes 48 loans with a diverse mix of property types and geographic locations. Financially, the company paid out a common share dividend of 25 cents per share in 1Q 2025.

Analysts view OBDC and ARI favorably, with OBDC having a Strong Buy consensus and ARI receiving a Buy rating. Jefferies analyst Matthew Hurwit sees potential for OBDC to deliver double-digit returns, giving it a Buy rating with a price target implying a 15% upside. BTIG analyst Tom Catherwood believes ARI is positioned to outperform its peers, also with a Buy rating and a price target suggesting a 14.70% gain.

Read more: Seeking 10% Dividend Yield? Jefferies and BTIG Suggest 2 Dividend Stocks to Buy