<div id="readability-page-1">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.<h3>Claim 50% Off TipRanks Premium and Invest with Confidence </h3><ul><li>Unlock hedge-fund level data and powerful investing tools designed to help you make smarter, sharper decisions </li><li> Stay ahead of the market with the latest news and analysis so your portfolio is always positioned for maximum potential</li></ul> 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 favorable 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. McKenna has two names to offer, including one with a massive yield of 13%. Let’s open up the TipRanks database and give them a closer look so we can find out what else they bring to the table. 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. The most recent dividend payment was declared on September 17 and paid out on October 15. The payment, of 51 cents per common share, annualizes to $2.04 and gives a forward yield of 13.5%. Trinity has been paying out dividends since 2021, has never missed a quarterly payment, and does have a history of adding special or supplemental dividends when appropriate. In its last earnings report, covering 3Q25, Trinity reported a total investment income of $75.6 million. This was up more than 22% year-over-year and beat the forecast by almost $1.2 million. At the bottom line, Trinity reported a net investment income of $37 million, which translated to a per-share value of 52 cents. The company’s net investment income was up 26% year-over-year, although the 52-cent per-share value missed expectations by a penny. We should note that the NII-per-share was sufficient to fully cover the last dividend. For Citizens analyst McKenna, this company offers a combination of growth and a solid dividend. He writes, “Given several company-specific drivers at Trinity, the outlook for earnings growth and ROEs remains healthy. Specifically, we currently model 1% YOY growth in NII per share (and our 2026E NII totals $2.10 per share) and an 15.5% ROE in 2026, which should ultimately drive solid dividend coverage over the next 12+ months (we think TRIN’s dividend coverage ratio troughed in 2025 at ~102%). Thus, we believe the current $0.51 per share quarterly dividend, or $2.04 per share annually (implying a 103% dividend coverage ratio), remains rock solid, equating to an attractive (and elevated) yield of 13.7% (as of writing), during a period when dividend coverage ratios for many in the group are set to decline notably, and in some cases, future dividends are potentially at risk depending on the magnitude of future base rates cuts (among other macro factors)…” The 5-star analyst sums up with an optimistic outlook: “Given what we view to be a healthy outlook and accelerating momentum into 2026, we expect this strong outperformance will persist moving forward.” These comments back up McKenna’s Outperform (i.e., Buy) rating on the shares, while his $17.50 price target points toward a 16% upside in the coming year. Add in the dividend yield, and this stock’s one-year return can exceed 29%. (To watch McKenna’s track record, click here) Overall, Trinity has earned a Moderate Buy consensus rating from the Street, based on 6 recent reviews that include 5 Buys and 1 Sell. The stock is priced at $15.12 and its $16.50 average price target indicates a one-year gain of 9%. (See TRIN stock forecast)</div>

TRIN

Citizens JMP analyst Brian McKenna highlights two high-yield dividend stocks, focusing on business development companies (BDCs) like Trinity Capital. Despite recent underperformance, McKenna sees a buying opportunity due to strong fundamentals. Trinity Capital, an internally managed BDC, offers a 13.7% yield with solid dividend coverage. McKenna predicts 1% YOY growth in net investment income per share and a 15.5% ROE in 2026, maintaining a robust dividend outlook.

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