3 High Yield Dividend Stocks to Consider While Treasury Yields Stay Elevated

With the US 10 year Treasury yield hovering around 4.65% to 4.66%, income investors face a simple question: take market level bond yields or look for dividend streams that pay more and aim to grow over time. Well covered dividends above 5% can be appealing when bond yields are high. This article looks at three Dividend Powerhouse stocks that meet that test.

The three Dividend Powerhouse stocks covered below are just a sample of what fits this profile, and the full screen surfaced 40 more companies with equally compelling dividend stories that are not included here. If you want to go straight to the source to identify and analyze potential high conviction income ideas, head into the Dividend Powerhouses (3%+ Yield) screener.

MONY Group (LSE:MONY)

Overview: MONY Group is a UK based price comparison and cashback company whose websites like MoneySuperMarket, MoneySavingExpert, Quidco and TravelSupermarket help households find better deals on insurance, money products, utilities and travel, while returning cash to shareholders through regular dividends that fit the Dividend Powerhouses theme. Its inclusion in this screen reflects a dividend yield above 5% that is supported by a cash generative, fee based platform model rather than the dividend being the core business itself.

Operations: MONY Group generates the bulk of its £448.1 million revenue in the UK from Insurance (£236.9 million), Money (£110.5 million), Cashback (£49.3 million) and Home Services (£54.8 million).

Market Cap: £1.1 billion

Income focused investors may find MONY Group interesting because it couples a high dividend yield with a business that generates cash from everyday comparison tools consumers already use. The recent interim dividend increase and ongoing share buyback show a clear commitment to returning capital. Solid profitability and high forecast return on equity point to earnings power that can help support those payouts. At the same time, rising marketing costs, regulatory pressure in energy switching and a heavier reliance on external borrowings mean the dividend carries risks. For investors seeking a yield story backed by a well known consumer brand portfolio, and who are willing to monitor cash flows and regulation closely, MONY may merit closer research.

MONY Group’s cash generative platform and rising capital returns story can look straightforward on the surface. The real question is what the 4 rewards reveal about how durable that income stream might be.

Foresight Group Holdings (LSE:FSG)

Overview: Foresight Group Holdings is a London based asset manager that runs renewable energy, energy management and other real asset funds which aim to generate steady income for investors, alongside a smaller private equity and venture capital business. Its strongest link to the Dividend Powerhouses theme comes from managing solar, wind, battery and related infrastructure funds that pay regular distributions, which in turn drive management fees and carried interest, rather than from its diversified private equity activities.

Operations: Foresight Group generates most of its revenue from Real Assets at about £114.8 million and a smaller contribution from Private Equity at about £50.1 million, with the bulk of activity tied to the United Kingdom and modest amounts from markets such as Australia and Luxembourg.

Market Cap: £546.8 million

Income investors may want to look closely at Foresight Group because it is built around managing income focused infrastructure funds in areas like renewables and energy management, which directly fits a stable, well covered dividend theme. Strong profitability metrics, an asset light fee model and regular share buybacks point to a business that can support ongoing capital returns if assets under management keep building. At the same time, heavy exposure to UK and European policy on green energy, reliance on performance fees and use of external borrowing introduce real risks to earnings consistency. For investors who like the idea of owning a dividend payer that is itself in the business of running income funds, this mix of strengths and pressure points makes Foresight worth more detailed research.

Foresight Group’s fee engine is tied to long term infrastructure income, but the real story is how those cash flows compare with its own dividend ambitions. Get the full picture in the analysis report for Foresight Group Holdings

Multitude (LSE:0R4W)

Overview: Multitude AG is a digital lender and online bank that focuses on interest bearing consumer loans and credit lines in Finland, using this cash generating portfolio to support a high dividend yield that fits the Dividend Powerhouses theme. Alongside this core retail lending engine, it also offers SME and wholesale banking services, plus savings accounts and cards, which add diversification but are smaller in scale.

Operations: Multitude generates most of its revenue from Consumer Banking at about €108 million, with smaller contributions from SME Banking of about €15 million and Wholesale Banking of about €15 million.

Market Cap: €127 million

Multitude gives you direct exposure to an interest bearing Finnish lending and online banking business that throws off cash to support a higher than 5% dividend yield, while currently trading at what looks like a significant discount to a fair value estimate and to many consumer finance peers on P/E metrics. Forecast earnings growth of about 13.8% a year and maintained profit guidance to 2028 point to ongoing dividend cover, even though a mixed dividend track record and large one off items mean you need to look carefully at the quality of those earnings. For investors comfortable with digital lenders and willing to scrutinise funding and credit risk, Multitude could be a yield story worth deeper research.

Multitude’s high yield and discount on P/E may suggest a story investors are misreading. See how the analyst forecasts for Multitude stack up against its funding and credit risks before the next key twist becomes clear.

Seeking Alternatives Before The Crowd Moves

Fresh dividend and growth stories can move from under the radar to flying fast once momentum builds. Scan curated ideas before the crowd catches up and consider acting sooner rather than later.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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