These $5 Stocks and ETFs Are Paying Huge Yields to 12%, but There’s a Catch

While most of Wall Street focuses on large- and mega-cap stocks, which offer safety and liquidity, many investors are constrained in the number of shares they can buy. Many of the most significant public companies, especially the technology giants, trade at prices of up to $1,000 per share. Meanwhile, others trade in the low to mid-hundreds. It is hard to get meaningful share-count leverage at those steep prices. Many growth and income investors, especially more aggressive traders, look to lower-priced stocks to generate returns and increase their share count. That can help the decision-making process, especially when you are on to a winner, as you can always sell and keep half.

Low-priced stock skeptics should note that many of the world’s largest companies, including Apple, Amazon, Netflix, and Nvidia, all traded in the single digits at some point. We identified four stocks and exchange-traded funds (ETFs) trading around $5, and some offer investors substantial ultra-high-yield dividends. The added value for investors is that, even if the stocks trade sideways or lower, you still receive a massive dividend for being patient and waiting for the shares to appreciate. The catch is that these are suitable only for investors with a high risk tolerance.

Why do we cover ultra-high-yield stocks and ETFs?

As we noted, while they are better suited for investors trying to build strong passive income streams, these companies, paired with more conservative blue-chip dividend giants, can be used in a barbell approach to generate passive income that makes a significant difference.

GAMCO Global Gold, Natural Resources & Income Trust

This is the perfect investment for investors looking to add gold and energy stocks. GAMCO Global Gold, Natural Resources & Income Trust (NYSE: GGN) is a non-diversified, closed-end management investment company. The investment objective is to provide a high level of current income through a monthly dividend of 6.91%.

The fund’s secondary investment objective is to seek capital appreciation consistent with the fund’s strategy and primary purpose. Under normal market conditions, the fund will attempt to achieve its objectives by investing 80% of its assets in equity securities of companies principally engaged in the gold and natural resource industries and by writing covered call options on those securities.

This popular Gabelli fund invests at least 25% of its assets in the equity securities of companies principally engaged in the exploration, mining, fabrication, processing, distribution, or trading of gold, or in the financing, management, control, or operation of companies engaged in gold-related activities.

Nuveen Credit Strategies

Run by one of the world’s most prominent money managers, this ETF, with 423 holdings and a 12.61% dividend yield, offers the kind of diversity that ultra-high-yield investors seek. Nuveen Credit Strategies Income Fund (NYSE: JQC) is a diversified closed-end management investment company. The fund’s investment objective is to achieve a high level of current income. The secondary investment objective is total return.

At the time of purchase, the Fund invests at least 80% of its assets in instruments that are senior to common equity in an issuer’s capital structure, including loans, debt securities, and preferred securities.

Nuveen Credit Strategies invests up to 20% of its Managed Assets in instruments of non-U.S. issuers that are U.S. dollar- or non-U.S. dollar-denominated, including instruments of issuers located in or conducting business in emerging markets. It also invests up to 25% of its managed assets in collateralized loan obligations debt securities.

It serves various industries, such as:

• Software
• Hotels
• Restaurants
• Leisure
• Media
• Insurance

PermRock Royalty Trust

PermRock Royalty Trust acquires, develops, and operates oil and natural gas properties in the Permian Basin. With a massive 12% dividend yield, this energy trust makes sense given that spot oil prices are likely forming a bottom. PermRock Royalty Property Trust (NYSE: PRT) is a statutory trust. The Trust owns a net profits interest representing the right to receive 80% of the net profits from the sale of oil and natural gas production from the underlying properties. T2S Permian Acquisition II LLC owns and operates the underlying properties.

The underlying properties comprise approximately 31,354 gross (22,394 net) acres in the Permian Basin, which covers more than 75,000 square miles in West Texas and Southeastern New Mexico.

The underlying properties consist of four operating areas:

• The Permian Clearfork area consists of about 2,434 net acres on the Central Basin Platform of the Permian Basin in Hockley and Terry Counties, Texas
• The Permian Abo area consists of about 1,667 net acres on the Central Basin Platform of the Permian Basin in Terry and Cochran Counties, Texas
• The Permian Shelf area consists of 14,390 net acres on the Eastern Shelf of the Permian Basin
• The Permian Platform area consists of 3,903 net acres

Townsquare Media

This off-the-radar stock has huge total-return potential, along with its massive 12.10% dividend. Townsquare Media Inc. (NYSE: TSQ) is a community-focused digital and broadcast media and digital marketing solutions company.

The company’s segments include:

• Subscription Digital Marketing Solutions, which includes Townsquare Interactive, its subscription digital marketing solutions business
• Digital Advertising, marketed as Townsquare Ignite, encompasses digital advertising on its programmatic platform and its owned-and-operated digital properties
• Broadcast Advertising, includes local, regional, and national advertising products and solutions delivered via terrestrial radio broadcast

The Broadcast Advertising segment also includes Townsquare Interactive, which partners with small and medium-sized businesses to manage their digital presence through a SaaS business management platform, website design, creation, and hosting, search engine optimization, and other digital services.

Our Top 2026 Passive Income Ultra-High-Yield Picks With Up to 10% Dividends.