Looking for High-Yield Dividend Stocks ? Citizens JMP Suggests 2 Names — One Offers a Massive 13% Yield

Sat, December 13, 2025

As we head into 2026, it’s only natural to want to set up the best possible portfolio for the new year. The key here is returns – we’ve seen bullish markets for several years now, and investors want to keep up that momentum. Dividend stocks can make a clear contribution.

Among the higher-yield corners of the market, business development companies (BDCs) stand out. These firms provide financing to small- and medium-sized businesses that often fall outside the traditional banking system, and like REITs, they benefit from favourable tax treatment when they distribute a large share of earnings to shareholders. That leads to high and usually reliable dividends.

Covering the BDC space for Citizens JMP, analyst Brian McKenna notes that despite recent underperformance, the fundamentals remain intact.

“Both the Alts and BDCs have underperformed over the past several months, although as we have written about at length, underlying fundamentals remain generally healthy for many (vs. perceptions across the marketplace today),” McKenna said. “We think the recent underperformance across the industry is largely unwarranted, specifically as the broader markets continue to trade at/near all-time highs, and we see (yet again) another compelling longer-term buying opportunity in these stocks.”

For investors seeking out high-yield dividend payers, this is exactly what is needed: an attractive point of entry and strong dividend.

Trinity Capital (TRIN)

The first company on our list, Trinity Capital, is an alternative asset manager that is structured for business purposes as an internally managed BDC. The company aims to provide its client firms with access to the credit market, and its investors with stable and consistent returns. Trinity invests its capital in a wide range of target firms, across several categories: tech, equipment, life sciences, sponsor finance, and asset-based lending. Since its founding in 2008, Trinity has poured some $5.1 billion into its investments. The company is based in Phoenix and operates in the US and Europe.

Trinity currently has $2.6 billion in assets under management, and boasts a market cap of $1.15 billion. The company makes careful vetting of its investment targets, keeping in mind its constant goal of maintaining a sound return for investors. This is usually returned via dividend distributions, and as of September this year Trinity has returned a cumulative $411 million through those payments.

  • How Trinity’s Seventh Straight Dividend Raise Will Impact Trinity Industries (TRN) InvestorsSimply Wall St Sun, December 7, 2025
    • Trinity Industries recently increased its quarterly dividend to US$0.31 per share, its seventh consecutive annual raise and the 247th straight quarterly payout, with the latest dividend paid on January 30, 2026 to shareholders of record on January 15, 2026.This extended record of dividend growth highlights Trinity’s emphasis on consistent shareholder returns and reinforces its reputation for disciplined capital allocation in the rail sector. We’ll now explore how this latest dividend increase shapes Trinity’s investment narrative, particularly its balance between income stability and future growth.
  • Trinity Industries Investment Narrative Recap. To own Trinity Industries, you have to believe in the long-term need for North American railcar leasing and manufacturing, supported by stable demand for freight-by-rail. The latest US$0.31 dividend increase reinforces Trinity’s income appeal, but does not materially change the near term picture, where the key catalyst remains a healthier railcar order environment and the main risk is that cyclical end markets and delayed customer capex continue to weigh on volumes and cash. The dividend hike follows Trinity’s October 2025 move to tighten and raise its full year 2025 EPS guidance to US$1.55 to US$1.70, which helped frame the payout within recently updated earnings expectations. Together, these announcements point to a management team signalling confidence in the business while still operating against a backdrop of softer recent sales, high leverage and interest costs that are not comfortably covered by earnings. Yet behind the steady dividend record, investors should also be aware of Trinity’s high leverage and relatively weak interest coverage…
  • Read the full narrative on Trinity Industries (it’s free!)
  • Trinity Industries’ narrative projects $2.6 billion revenue and $207.4 million earnings by 2028. This requires 1.3% yearly revenue growth and about a $98.8 million earnings increase from $108.6 million today.
  • Uncover how Trinity Industries’ forecasts yield a $25.50 fair value, a 8% downside to its current price.
  • Exploring Other PerspectivesTRN Earnings & Revenue Growth as at Dec 2025The Simply Wall St Community’s two fair value estimates for Trinity span roughly US$16.32 to US$25.50, underlining how far apart individual views can be. Some of these investors focus on the risk that Trinity’s exposure to cyclical energy and agriculture demand could slow new railcar orders and weigh on longer term performance, so it is worth comparing several viewpoints before forming your own stance.

Blue Owl Technology Finance (OTF)

Next on our list, Blue Owl Technology Finance, is a large, tech-focused BDC that was formed to provide credit to tech-related firms. The company originates and makes loans and makes equity investments in its target firms, and aims mainly at enterprise software companies. Blue Owl Tech Finance is externally managed by an affiliate of the larger Blue Owl Capital. This link to a larger asset manager gives the BDC access to solid backing.

The BDC focuses on US-based upper middle-market tech firms. Its investment strategy prioritizes senior secured or unsecured loans, subordinated loans or mezzanine loans, and also equity-related securities. Blue Owl Tech Finance aims to prioritize long-term credit performance for maximum returns. This includes setting a diversified portfolio and weighting it toward defensive industries that are non-cyclical.

Blue Owl Tech’s portfolio currently stands at $12.9 billion in fair value, with 77% of it being in first-lien senior secured loans. The portfolio features 97% floating-rate debt investments and 3% fixed-rate. Nearly three quarters (74%) is located in three US regions: West, South, Northeast. Systems software makes up 20% of the portfolio.

In its last reported financial quarter, 3Q25, Blue Owl Tech reported two key metrics: the company reported a GAAP net investment income of 28 cents per share and an adjusted net investment income of 32 cents per share. This quarter marked the company’s first full quarter as a publicly listed firm. Blue Owl Tech declared a dividend of 35 cents per share to be paid on January 15. In addition, the company has declared five special dividends of 5 cents each, with the next one scheduled for payment on January 7. The total dividend to be paid in January, 40 cents per common share, annualizes to $1.60 and gives a forward yield of 11%.

McKenna, in following this BDC, lays out a course that he sees it following, one that will lead to continued success.

“Given the strong trajectory of NII over the next year (i.e., NII per share will be growing vs. the 2H25 quarterly level, not declining), we think the company will be roughly earning the regular quarterly dividend ($0.35 per share) exiting 2026, with even greater dividend coverage beyond that as leverage and the size of investment portfolio inevitably normalize to the longer-term targets, a clear outlier within the publicly-traded BDC sector. We also highlight that the company has a healthy track record of delivering unrealized/realized gains across the portfolio (specifically tied to equity investments), so any incremental GAAP earnings above and beyond NII will be accretive to GAAP NI ROEs, as well as NAV,” McKenna noted.

Summing up, the Citizens analyst says of Blue Owl Tech: “Bottom line, as leverage and the size of the investment portfolio normalize over time, we anticipate the company will generate ~10%+ ROEs through the cycle (both on an NII and GAAP net income basis), potentially even above that depending on the level of appreciation/upside that occurs within the equity portfolio, which we think will be the biggest driver of OTF’s valuation multiple over time… We believe OTF is an excellent way to gain exposure to the asset class, specifically some of the largest and most innovative companies in the private ecosystem.”

Quantifying his stance on OTF, McKenna rates the stock as Outperform (i.e., Buy), with a $17 price target that suggests an upside of 20% by this time next year. The one-year return can hit 31% when the dividend yield is added in.

Overall, Blue Owl Tech’s Moderate Buy consensus rating is supported by 9 analyst reviews that include 4 Buys and 5 Holds. The shares are priced at $14.21, and the $15.78 average price target implies a 12-month gain of 11%. (See OTF stock forecast)