As of October 14, 2026, the ten highest-yielding small- and mid-cap stocks in the Russell 3000 came from the energy and financial sectors, with dividend yields ranging from 10.12% to 19.56%. A screen based on dividend yield found three energy companies and seven financial companies among the top ten. The analysis also found that some companies offered dividend yields above their free-cash-flow yields, a measure that can raise questions about payout coverage.
Energy and financial stocks dominate the highest yields
Among energy companies, DHT Holdings ranked first, International Seaways fifth and FLEX LNG tenth. The seven financial companies identified in the screen were Dynex Capital, Invesco Mortgage Capital, Blackstone Mortgage Trust, TPG RE Finance Trust, Adamas Trust, Ellington Financial and Rithm Capital. PagSeguro Digital ranked ninth.
The screen referred to high-yielding stocks as “dividend dogs.” Dividend yield reflects both a company’s payout and its share price, meaning a falling share price can push the yield higher. A high yield may therefore reflect depressed pricing as well as the company’s ability to generate cash and maintain its dividend.
Analyst target prices produce widely varying return estimates
Using analysts’ median 12-month price targets and estimated annual dividends, Blackstone Mortgage Trust was projected to generate a net return of $812.31 on a $1,000 investment after brokerage fees. The estimate was based on targets from nine analysts. Adamas Trust had an estimated net return of $750, based on seven analysts’ targets, while Industrial Logistics Properties had an estimate of $680.96, based on four analysts’ targets.
The other companies included in the top-ten estimates were Rithm Capital, with an expected net return of $666.65; LCI Industries, $645.58; Polaris, $457.96; Clearway Energy, $455.72; Dynex Capital, $451.25; Global Net Lease, $420.85; and TPG, $412.55. The number of analysts used varied by company, and no beta value was available for TPG.
Assuming a $1,000 investment in each of the ten stocks, the combined estimated net return from dividends and share-price gains was about 57.54%. The group’s estimated average volatility risk was 13% higher than that of the broader market. These figures are calculations based on price targets and dividends, not realized returns.
Free-cash-flow comparisons highlight differences in payout coverage
Among the stocks assessed, 13 were identified as having free-cash-flow yields below their dividend yields. On that measure, their dividend payments exceeded the corresponding level of free cash flow. The companies listed were DHT Holdings, Dynex Capital, International Seaways, Rithm Capital, PagSeguro Digital, FLEX LNG, TFS Financial, Alexander’s, TPG Inc., Portland General Electric, Lincoln National, Stag Industrial and Spire.
The analysis excluded companies with dividend yields above free-cash-flow yields from its “safer” screen. The comparison offers one way to examine the relationship between cash generation and dividends, but it does not by itself establish whether a company will cut its payout. The material did not provide specific changes to the dividend policies of these companies.
The share-price cost of each dollar of dividends varies
Another measure divided each share price by its annual dividend to show how much investors would pay in share price for every dollar of annual dividend income. DHT Holdings had the lowest figure in the group, at $5.11, while UGI Corp. had the highest, at $24.81. The analysis said that, as of October 14, all ten stocks met its “ideal” threshold under the specified price-to-dividend comparison: the annual dividend associated with each $1,000 investment exceeded the price of one share.
After combining the yield screen with analyst price targets, the analysis compared the five lowest-priced stocks in the top ten with the full ten-stock group. The five were TPG RE Finance Trust, Adamas Trust, Rithm Capital, Blackstone Mortgage Trust and PagSeguro Digital, with share prices ranging from $5.64 to $10.83.
Based on 12-month price targets, the five-stock portfolio had an estimated return 38.10% higher than the ten-stock portfolio. Blackstone Mortgage Trust had the highest estimated gain in that group, at 81.23%. The results reflect a screen and forecasts made using data from a specific date; actual performance will depend on changes in share prices, dividends and company cash flow.