When people say they’re looking for “dividend stocks,” many investors default to a handful of popular companies like Coca-Cola, Abbott Labs, PepsiCo, and Realty Income as the top suggestions. And I don’t blame them; I’ve written about all these companies before, and yes, they offer very attractive yields, packaged with consistency and reliability.
However, these companies are considered safe, conservative choices.
Some investors might want to make their money work harder. And in that scenario, business development companies (BDCs) offering double-digit yields begin to stand out. Like real estate investment trusts (REITs), BDCs are required by law to distribute at least 90% of their taxable income to shareholders as dividends. That makes them a good choice for high-yield hunting.
So today, I’ll take a look at buy-rated BDCs that offer the highest yields.
How I came up with the following stocks
I used Barchart’s Stock Screener to find the highest-yielding companies on my watchlist.
- Annual Dividend Yield % (Forward): Left blank so I can arrange the results based on it.
- Current Analyst Rating: “Moderate Buy” to “Strong Buy” only, since I’m focusing on companies backed by Wall Street analysts.
- Number of Analysts: At least 12 analysts covering the stock. This helps ensure the ratings reflect broader analyst coverage rather than just a few opinions.
- Watchlist: Finally, I limited the results to companies in my BDC (Business Development Company) watchlist, which includes firms known for generating income primarily through lending to private businesses.
I set the filter, ran the screen, and got 5 results. I then sorted the companies by highest yield.
Now, I’ll cover the top three, starting with:
#1. Trinity Capital Inc (TRIN)
Trinity Capital Inc is a specialty finance company that provides funding to growing businesses, particularly in the technology and life sciences sectors. It lends capital through venture debt and equipment financing, helping companies scale their operations.
A recent example of this is Trinity Capital's announcement of a $35 million growth capital loan to Neuros Medical, a private biotech company focused on improving the quality of life for patients who have undergone amputation. Neuros will use the money to scale toward commercialization, including expanding manufacturing, increasing adoption of its technology, and moving closer to generating consistent revenue.
Trinity Capital pays a forward annual dividend of $2.04, translating to a yield of around 13.7%. Meanwhile, a consensus among 12 analysts rate the stock a “Moderate Buy,” with a high target price of $19, suggesting a 27% potential upside.
#2. Blackstone Secured Lending Fund (BXSL)
The next dividend stock on my list is Blackstone Secured Lending Fund, a business development company (BDC) that lends money to midsize businesses. These companies are usually established and growing, but still rely on private lenders rather than traditional bank financing.
In Q4 ‘25, Blackstone reported a net investment income (NII) of 80 cents per share. For those unfamiliar, NII is the money an investment company earns after expenses but before capital gains or losses. For BDCs, this is the metric to watch regarding dividend payments.
The company also reported its second consecutive quarter of $1 billion in net investment activity. Net investment activity measures the net amount of money a company puts into or takes out of its investments over a period. That means Blackstone’s investments are accelerating, which may help generate more income in the future.
In terms of dividends, Blackstone Secured Lending pays a forward annual rate of $3.08, translating to a yield of approximately 13%.
Meanwhile, a consensus among 12 analysts rates the stock a “Moderate Buy”, with around 31% upside potential if the stock reaches its target high of $31.50.
#3. Blue Owl Capital Corp (OBDC)
The last dividend stock on my list is Blue Owl Capital Corp, another BDC that provides loans to established private companies.
A few days ago, Blue Owl Capital received a total of seven awards from the 2025 Private Equity Real Estate (PERE) Awards and the 2025 Infrastructure Investor Awards. Now, awards like these don’t necessarily guarantee performance, but they do validate the company’s standing in the private credit space.
Blue Owl pays a forward annual dividend of $1.48, translating to a yield of approximately 13%.
Meanwhile, a consensus among 14 analysts rates the stock a “Strong Buy,” making it the highest-rated entry on this list. In fact, this rating was a recent increase from a “Moderate Buy” just a month ago. Additionally, the $15.50 high target price represents as much as 36% upside if reached.
Final Thoughts
High-yield dividend stocks look quite attractive. Who doesn’t want double-digit yields on their hard-earned money?
However, these companies carry certain risks not present in more established dividend stocks. High yields mean greater reliance on financial performance, so a slow year might lead to a dividend cut. Still, every dividend powerhouse has to start somewhere, and these companies already show signs of that path, with analyst support and strong growth potential. Just remember: due diligence is non-negotiable in any financial investment.
On the date of publication, Rick Orford did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
More news from Barchart
