Top 3 Dividend Stocks Offering an Average Yield of 9.9%

Rowan Ashford

Published: February 11, 2026 9:04 AM ET

Investors seeking high dividend yields can find lucrative options beyond the typical FTSE 100. The FTSE 250 and AIM indices often offer attractive opportunities that could lead to impressive returns. Here, we explore three dividend stocks with an average yield of 9.9%, presenting a solid case for careful investment amid their recovery from recent downturns.

Top 3 Dividend Stocks Offering an Average Yield of 9.9%

1. Reach (LSE: RCH)

Reach stands out with a remarkable yield of 11.5%. This figure usually raises caution, yet its track record of 11 years of consistent payments supports its reliability. The company boasts a low payout ratio of 46.4%, allowing room for growth.

Cash coverage: 1.6 times
Year-on-year earnings growth: 20%
Net margin improvement: from 3.78% in 2023 to 9.95% in 2024

Despite setbacks due to competition from AI, Reach shows signs of recovery that could benefit investors seeking both income and growth.

2. RWS Holdings (LSE: RWS)

With a yield of 9.3%, RWS Holdings presents an intriguing yet risky investment. The company recently reported a loss of £99.8 million, and its dividends are only minimally covered by cash (1.11 times).

Dividends have declined by 43.3% over the past year.
Consistent dividend payments for 22 years.
Forward P/E ratio: 5.56

RWS is investing in an AI-driven SaaS model, potentially enhancing its revenue streams. While it carries risks, the growth potential may lead to remarkable returns if the strategy succeeds.

3. NewRiver REIT (LSE: NRR)

NewRiver REIT, focusing on retail and leisure properties, offers the lowest yield on this list at 9%. However, it benefits from regulations requiring 90% of profits to be distributed to shareholders.

Year-on-year revenue growth: 84%
Year-on-year earnings growth: 54%
Forward P/E ratio: 9.2

While the UK property market faces challenges like rising interest rates and taxation impacts, NewRiver’s sustainable earnings and 15-year history of dividend payments make it a sound choice for investors seeking passive income.

All three stocks reflect a strong commitment to returning value to shareholders, making them compelling options for dividend-focused investors. As always, further analysis of the associated risks is recommended before making investment decisions.