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.

24/7 Wall Street • Feb 5, 2026

JQC: Distribution Under Pressure And 2026 Fed Policy Will Make It Worse

Nuveen Credit Strategies Income Fund offers a compelling 12.86% yield, outpacing major bond indices but faces sustainability concerns. JQC's heavy allocation to floating-rate debt exposes it to declining income as the Federal Reserve cuts rates, threatening future distributions. The fund has not covered its distribution from net investment income, with recent payouts exceeding earnings and net asset value declining.

Seeking Alpha • Dec 31, 2025

JQC: High Yield With Monthly Pay, But Coverage Remains A Concern

Nuveen Credit Strategies Income Fund offers a high 12.3% yield but faces weakening distribution coverage due to heavy floating-rate asset exposure. JQC conducted a rights offering earlier this year, which was dilutive and put increased downward pressure on the fund with the broader market in sell-off mode at the time too. Distribution coverage has continued its downward trend, with further deterioration likely as the Fed continues to cut rates, impacting JQC's income generation.

Seeking Alpha • Oct 10, 2025

JQC: Heavy Leverage Use And Generous Payouts Limit Appeal

Nuveen Credit Strategies Income Fund maintains a high 12.2% yield but faces ongoing concerns about dividend sustainability and NAV erosion. JQC relies heavily on leverage (37% of assets) and invests primarily in below-investment-grade loans, increasing risk in a high-rate environment. Distribution coverage remains inconsistent, with payouts often exceeding earnings; recent dividend increases may be aimed at narrowing JQC's discount to NAV.

Seeking Alpha • Oct 3, 2025

Have $1000 and Need Ultra-High-Yield Dividend Income? Our Favorite $5 Stocks

While most of Wall Street focuses on large and mega-cap stocks, as they provide a degree of safety and liquidity, many investors are limited in the number of shares they can buy. Many of the most significant public companies, especially the technology giants, trade at prices up to $1,000 per share, while many are in the low to mid-hundreds. It is hard to get decent share count leverage at those steep prices. Many investors, especially more aggressive traders, look at lower-priced stocks to make a profit 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 half and keep half.

24/7 Wall Street • Sep 12, 2025

JQC Provides High-Yield Exposure, But Underperforms Peer Strategies

JQC offers high yield (11.85%) via exposure to senior loans, high-yield debt, and CLOs, but carries elevated risk from credit quality and leverage. Macroeconomic factors like trade tariffs and interest rates pose significant risks to high-yield issuers, potentially impacting JQC's portfolio performance. JQC charges relatively high fees (202bps) and has historically underperformed peers like ARDC, despite a stable distribution since Q3'23.

Seeking Alpha • Jul 8, 2025

5 Stocks and ETFs Priced at $5 and Lower Pay Massive 10% to 19% Dividends

While Most of Wall Street focuses on large and mega-cap stocks, as they provide a degree of safety and liquidity, many investors are limited in the number of shares they can buy.

24/7 Wall Street • Jul 6, 2025

Get Paid 10%+ a Year? These Monthly Dividend Stocks Actually Deliver

Although double-digit yields were normal during the 1980s, lower interest rates and a robust stock market have rendered yields of 10% or higher obscure.

24/7 Wall Street • Jun 17, 2025

Stocks and ETFs $5 and Lower With Massive Monthly Ultra-High-Yield Dividends

Investors love dividend stocks, especially the ultra-high-yield variety, because they offer a significant income stream and have massive total return potential.

24/7 Wall Street • Jun 9, 2025

Nuveen Credit Strategies Income Fund Announces the Preliminary Results of Rights Offering

NEW YORK--(BUSINESS WIRE)--Nuveen Credit Strategies Income Fund (NYSE: JQC) (the “Fund”) today announced the preliminary results of its transferable rights offering (the “Offer”) which expired at 5:00 p.m., Eastern time, on April 29, 2025 (the “Expiration Date”). The Offer entitled the rights holders to subscribe for additional common shares of the Fund (“Common Shares”). The Offer is expected to result in the issuance of approximately 12.2 million Common Shares (including notices of guaranteed.

Business Wire • Apr 30, 2025