10 Dangerous Dividend Shares Whose Yields Are Too Excessive

Printed on December eighth, 2025 by Bob Ciura

Normally, excessive dividend yields are a superb factor. In spite of everything, the higher the dividend yield, the extra earnings you’re paid in your funding.

Earnings investing, and explicit dividend reinvestment, permits traders to steadily develop their wealth over the long term.

With this in thoughts, we compiled a listing of excessive dividend shares with dividend yields above 5%. You possibly can obtain your free copy of the excessive dividend shares listing by clicking on the hyperlink beneath:

Excessive dividend shares are naturally interesting on the floor, attributable to their excessive dividend yields.

However earnings traders want to ensure they don’t fall right into a dividend ‘entice’, that means buying a inventory solely attributable to its excessive yield, solely to see the corporate lower or remove the dividend payout.

Whereas there may be by no means a assure a inventory is not going to lower its dividend, specializing in shares with sturdy underlying fundamentals and modest payout ratios can go a great distance.

The shares all have Dividend Threat Scores of ‘F’ (our lowest grades) within the Certain Evaluation Analysis Database, with payout ratios above 100%, indicating their dividends are too excessive and unsustainable at this time ranges.

Because of this, all 10 shares have promote rankings from Certain Dividend. The listing is sorted by present yield, from lowest to highest.

Desk of Contents

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Too Excessive Dividend Yield #10: Cross Timbers Royalty Belief (CRT)

Cross Timbers Royalty Belief (CRT) is an oil and gasoline belief, arrange in 1991 by XTO Vitality. It’s a mixture belief: unit holders have a 90% web revenue curiosity in producing properties in Texas, Oklahoma, and New Mexico; and a 75% web revenue curiosity in working curiosity properties in Texas and Oklahoma.

A working curiosity property is one the place the unit holder shares in manufacturing expense and improvement value. Which means that ought to improvement prices exceed income no additional income might be paid from these properties till extra prices have been recovered.

In 2024, oil comprised 72% of whole revenues whereas gasoline comprised 28% of whole revenues. The belief’s property are static in that no additional properties might be added.

The belief has no operations however is merely a pass-through automobile for the royalties. CRT had royalty earnings of $12.3 million in 2023 and $6.6 million in 2024.

In mid-November, CRT reported (11/13/25) outcomes for the third quarter of fiscal 2025. Oil and gasoline volumes declined 20% and 47%, respectively, over the prior 12 months’s quarter. The typical realized value of oil decreased -20%.

Because of this, distributable money circulate (DCF) per unit plunged -68%. Sadly, distributions have plunged amid low oil costs within the final seven months, as OPEC has begun unwinding its manufacturing cuts.

Click on right here to obtain our most up-to-date Certain Evaluation report on CRT (preview of web page 1 of three proven beneath):

Too Excessive Dividend Yield #9: InPlay Oil Corp. (IPOOF)

InPlay Oil is a Calgary-based oil and gasoline exploration and manufacturing firm targeted on growing mild oil and pure gasoline property in Alberta, primarily focusing on the Cardium and Stomach River formations. InPlay Oil combines horizontal drilling, enhanced oil restoration, and infrastructure optimization to maximise effectivity and returns.

Final 12 months, it averaged 8,712 boe/d in manufacturing, with 58% attributed to crude oil and NGLs, and generated C$68.5 million in adjusted funds circulate.

InPlay Oil is a Calgary-based oil and gasoline exploration and manufacturing firm targeted on growing mild oil and pure gasoline property in Alberta, primarily focusing on the Cardium and Stomach River formations.

InPlay Oil combines horizontal drilling, enhanced oil restoration, and infrastructure optimization to maximise effectivity and returns. Final 12 months, it averaged 8,712 boe/d in manufacturing, with 58% attributed to crude oil and NGLs, and generated C$68.5 million in adjusted funds circulate.

On November eleventh, 2025, InPlay Oil reported its Q3 2025 outcomes. The corporate posted whole income of about $56.3 million, a 131% year-over-year improve, pushed by the Pembina asset acquisition and better manufacturing volumes and oil weighting.

Common manufacturing for the quarter was 18,970 boe/d, up sharply from 8,206 boe/d final 12 months. Adjusted funds circulate for the quarter was $19.0 million, up from $9.3 million final 12 months, with diluted AFF/share of about $0.68.

Click on right here to obtain our most up-to-date Certain Evaluation report on IPOOF (preview of web page 1 of three proven beneath):

Too Excessive Dividend Yield #8: PermRock Royalty Belief (PRT)

PermRock Royalty Belief is a belief fashioned in November 2017 by Boaz Vitality, an organization that’s targeted on the acquisition, improvement and operation of oil and pure gasoline properties within the Permian Basin.

The belief derives all its money flows from income from the sale of oil and pure gasoline manufacturing from these properties and distributes dividends month-to-month.

The Permian Basin is probably the most prolific oil producing space within the U.S. The properties of PermRock encompass long-life reserves in mature, typical oil fields, with shallow, predictable decline charges.

The belief can pump further oil by way of water-flooding methods, whereas it will possibly additionally determine new reserves within the space within the upcoming years.

On March 31, 2025, Boaz Vitality accomplished the sale of the oil and gasoline properties underlying the Belief to T2S Permian Acquisition II LLC.

On August thirteenth, 2025, PermRock Royalty reported second quarter 2025 outcomes for the interval ending June 30, 2025. Internet income earnings obtained by the belief was $1.55 million, in comparison with $1.66 million within the prior 12 months quarter.

The typical realized sale value of oil declined by 16% year-over-year, whereas pure gasoline edged up by 8.7%.

Distributable earnings for the belief got here to $1.20 million, down 11% from $1.35 million within the prior 12 months interval and distributable earnings per unit of $0.10 was quick a penny from $0.11 within the prior 12 months.

Complete money reserves as of June thirtieth, 2025, had been $1 million, an identical to June thirtieth, 2024. Yr-to-date, the belief has declared $0.3105 in distributions.

Click on right here to obtain our most up-to-date Certain Evaluation report on PRT (preview of web page 1 of three proven beneath):

Too Excessive Dividend Yield #7: Mesa Royalty Belief (MTR)

Mesa Royalty Belief was fashioned in 1979 and is predicated in Houston, Texas. It holds overriding royalty pursuits in pure gasoline and oil properties within the Hugoton subject of Kansas and the San Juan Basin of New Mexico and Colorado.

The Belief doesn’t function the property it receives 11.44% of 90% of the web proceeds from manufacturing on these properties after working and advertising prices, with the pursuits managed and developed by third-party working curiosity house owners reminiscent of Hilcorp San Juan LP, Scout Vitality Group, Simcoe LLC, and Crimson Willow Manufacturing Firm.

On November thirteenth, 2025, Mesa Royalty Belief reported its Q3 outcomes for the quarter ended September thirtieth, 2025. The Belief recorded distributable earnings of $0.0477 per unit earlier than reserve changes, which after web modifications to the Contingent Reserve resulted in $0.0386 per unit truly distributed, up from $0.0055 in the identical quarter of the prior 12 months.

Royalty earnings of $128,993 got here solely from the San Juan Basin, New Mexico properties operated by Hilcorp, whereas the Hugoton and San Juan Basin Colorado properties once more generated no royalty earnings, as working prices and prior interval changes continued to exceed revenues.

Extra manufacturing prices elevated to $929,446 as of quarter-end, up from $793,838 at year-end 2024, and have to be recovered earlier than money circulate from these properties can resume. We consider the corporate has an earnings energy of $0.50.

Click on right here to obtain our most up-to-date Certain Evaluation report on MTR (preview of web page 1 of three proven beneath):

Too Excessive Dividend Yield #6: Stellus Capital (SCM)

Stellus Capital Administration is a enterprise improvement firm, or BDC, that payments itself as a versatile supply of capital for the center market.

The corporate supplies capital options to firms with $5 million to $50 million of EBITDA and does so with quite a lot of devices, the vast majority of that are debt.

Stellus supplies first lien, second lien, mezzanine, convertible debt, and fairness investments to a various group of shoppers, usually at excessive yields, within the US and Canada.

Stellus posted third quarter earnings on November twelfth, 2025, and outcomes had been weak as soon as once more. Internet funding earnings was $9.1 million, down from $10.3 million a 12 months in the past. On a per-share foundation, NII fell from 39 cents to 32 cents.

Core web funding earnings, which is an adjusted type of revenue, fell from $10.6 million to $9.7 million, or from 39 cents per share to 32 cents. Complete funding earnings, which is akin to income, was $26.28 million, down barely from $26.5 million a 12 months in the past.

Internet asset worth was down 16 cents per share, with eight cents of that attributable to dividend funds exceeding earnings, and eight cents to web unrealized losses from two debt investments.

On the finish of the quarter the funding portfolio was $1.01 billion at truthful worth throughout 115 firms, each up from $986 million and 112 firms, respectively, a 12 months earlier.

Click on right here to obtain our most up-to-date Certain Evaluation report on SCM (preview of web page 1 of three proven beneath):

Too Excessive Dividend Yield #5: Ellington Credit score Co. (EARN)

Ellington Credit score Co. acquires, invests in, and manages residential mortgage and actual property associated property. Ellington focuses totally on residential mortgage-backed securities, particularly these backed by a U.S. Authorities company or U.S. authorities–sponsored enterprise.

Company MBS are created and backed by authorities companies or enterprises, whereas non-agency MBS are not assured by the federal government.

On August nineteenth, 2025, Ellington Credit score reported its first fiscal quarter outcomes for the interval ending June 30, 2025. The corporate generated web earnings of $10.2 million, or $0.27 per share.

Ellington achieved adjusted web funding earnings of $6.6 million within the quarter, or $0.18 per share. At quarter finish, Ellington had $36.6 million in money and money equivalents.

Click on right here to obtain our most up-to-date Certain Evaluation report on EARN (preview of web page 1 of three proven beneath):

Too Excessive Dividend Yield #4: Horizon Expertise Finance (HRZN)

Horizon Expertise Finance Corp. is a BDC that gives enterprise capital to small and medium–sized firms within the expertise, life sciences, and healthcare–IT sectors.

The corporate has generated engaging danger–adjusted returns by immediately originated senior secured loans and extra capital appreciation by warrants.

Horizon Expertise Finance Corp. is a BDC that gives enterprise capital to small and medium–sized firms within the expertise, life sciences, and healthcare–IT sectors.

On October twenty eighth, 2025, Horizon introduced its Q3 outcomes. For the quarter, whole funding earnings rose 6.9% year-over-year to $26.3 million, pushed primarily by larger charge and curiosity earnings on investments from the debt portfolio.

The corporate’s dollar-weighted annualized yield on common debt investments in Q3 of 2025 and Q3 of 2024 was 18.6% and 15.9%, respectively.

Internet funding earnings per share (IIS) remained flat year-over-year at $0.32. Internet asset worth (NAV) per share improved to $7.12, up from $6.75 within the prior quarter, however this was down from $9.12 within the prior 12 months.

Horizon’s undistributed spillover earnings stood at $0.93 per share at quarter-end, sustaining a robust earnings cushion to help future dividends.

Click on right here to obtain our most up-to-date Certain Evaluation report on HRZN (preview of web page 1 of three proven beneath):

Too Excessive Dividend Yield #3: Orchid Island Capital (ORC)

Orchid Island Capital is a mortgage REIT that’s externally managed by Bimini Advisors LLC and focuses on investing in residential mortgage-backed securities (RMBS), together with pass-through and structured company RMBSs.

These monetary devices generate money circulate primarily based on residential loans reminiscent of mortgages, subprime, and home-equity loans.

On October 23, 2025, Orchid Island Capital, Inc. reported estimated web earnings of $0.53 per frequent share for Q3 2025, with e book worth per share estimated at $7.33 as of September 30, 2025.

The corporate declared a month-to-month dividend of $0.12 per share for October, retaining per its month-to-month payout technique.

The RMBS portfolio and derivatives portfolio developed as the corporate remained targeted on company residential mortgage-backed securities paired with hedging methods.

Orchid Island highlighted that the funding backdrop stays engaging with enhancing spreads and prepayment danger manageable given the portfolio’s coupon distribution and hedges.

Prepayment exercise remained a focus, with administration noting the necessity for continued vigilance given larger coupon swimming pools and refinancing dynamics.

Click on right here to obtain our most up-to-date Certain Evaluation report on Orchid Island Capital, Inc. (ORC) (preview of web page 1 of three proven beneath):

Too Excessive Dividend Yield #2: Prospect Capital (PSEC)

Prospect Capital Company is a Enterprise Growth Firm, or BDC, that gives non-public debt and personal fairness to center–market firms within the U.S.

The corporate focuses on direct lending to proprietor–operated firms, in addition to sponsor–backed transactions. Prospect invests primarily in first and second lien senior loans and mezzanine debt, with occasional fairness investments. 

Prospect posted fourth quarter and full-year outcomes on August twenty sixth, 2025, and outcomes had been weak as soon as once more as the corporate continues to battle. Internet curiosity earnings for the quarter was 17 cents per share. NII was down from 25 cents from the identical interval a 12 months in the past. Complete income plummeted 21% year-over-year to $167 million.

Complete originations had been $271 million, up from $196 million within the prior quarter. Complete repayments and gross sales had been $445 million, up from simply $192 million in Q3. Internet originations, then, fell from $4 million in Q3 to -$175 million within the last quarter of the 12 months, shrinking the corporate’s portfolio to $6.67 billion. That’s down from $7.72 billion a 12 months in the past.

Annualized present yield for all investments rose to 9.6% from 9.2% in Q3, however decrease from 9.8% a 12 months in the past.

Click on right here to obtain our most up-to-date Certain Evaluation report on PSEC (preview of web page 1 of three proven beneath):

Too Excessive Dividend Yield #1: Oxford Sq. Capital (OXSQ)

Oxford Sq. Capital Corp. is a BDC (Enterprise Growth Firm) specializing in financing early- and middle-stage companies by loans and investments in collateralized mortgage obligations.

On the finish of Q3, the entire truthful worth of Oxford Sq.’s funding portfolio was about $260.5 million throughout its debt, CLO fairness, and fairness/different holdings, allotted about 54.5% to senior secured debt, 43.5% to CLO fairness, and roughly 2% to fairness or different investments. Final 12 months, the BDC generated roughly $42.7 million in whole funding earnings.

On November sixth, 2025, Oxford Sq. Capital reported its Q3. The corporate generated roughly $10.2 million in whole funding earnings, primarily flat in contrast with $10.3 million in Q3 2024, as decrease said curiosity earnings from debt investments offset larger PIK earnings and stronger contributions from securitization autos.

The weighted common yield on debt investments elevated barely to 14.6% from 14.5% a 12 months earlier. The weighted common yield on CLO fairness investments stood at 9.7%, modestly larger than 9.6% in Q3 2024.

Complete bills had been about $4.7 million, in contrast with $4.2 million within the prior-year interval, primarily reflecting larger curiosity expense tied to the corporate’s excellent unsecured notes.

Internet funding earnings (NII) got here in at $5.6 million, or $0.07 per share, versus $6.2 million, or $0.10 per share, in Q3 2024.

Click on right here to obtain our most up-to-date Certain Evaluation report on OXSQ (preview of web page 1 of three proven beneath):

Further Studying

If you’re keen on discovering high-quality dividend progress shares and/or different high-yield securities and earnings securities, the next Certain Dividend assets might be helpful:

Excessive-Yield Particular person Safety Analysis

Different Certain Dividend Assets