A 29.4% Yield and a History of Cuts: 3 Dividend Stocks Worth a Closer Look

Oct 16, 2026
a-29.4%-yield-and-a-history-of-cuts:-3-dividend-stocks-worth-a-closer-look

Chris Lange

6 min read

Quick Read

  • OXLC halved its payout to $0.20 beginning April 2026, and SVC twice slashed its dividend to nearly nothing, losing 86% of its stock value over five years.

  • ILPT doubled its dividend but carries 11.5x leverage, with FedEx accounting for 28% of rental revenue, so any tenant stumble poses a serious payout risk.

  • Just released. Our analysts combed the entire stock market and named the ten best stocks to buy right now, and Service Properties Trust didn’t make the cut. Enter your email to see the names that beat SVC. The report is free. Enter your email and see if any of your stocks made the cut.

Oxford Lane Capital (NASDAQ:OXLC) pays a forward distribution of $2.40 per share. At a share price of $8.15, that works out to a yield of about 29.4%. A yield like that pulls in income investors, and that is exactly why it needs a close look. A high yield is only as good as the cash behind it, and all three names below have cut their payouts before.

A person's hands are shown interacting with a laptop keyboard, overlaid with a translucent digital interface. The interface displays glowing blue and orange trend lines, bar graphs, and multiple yellow triangular warning signs with black exclamation marks. A large, red downward-pointing arrow diagonally spans the upper right, indicating a significant decline. Various numerical data points like '69.23021' and '51.2362' are visible against a dark, blurred background.

A9 STUDIO / Shutterstock.com

Quick test: a dividend starts to look unsustainable when the right earnings measure fails to cover it, when cash left over after capital spending falls short, or when borrowed money is propping it up.

(there are seven warning signs a big yield is about to be cut, and we laid them all out in a free report here: Dividend Traps.)

Oxford Lane Capital (OXLC): A 29% Yield Built on Shrinking Checks

Oxford Lane pays monthly, currently $0.20 per share. For a retiree who wants a regular monthly deposit, that schedule and a yield near 30% are a hard combination to ignore.

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The payment history shows a pattern of cuts. After a 1-for-5 reverse stock split effective September 5, 2025, the fund paid $0.45. It then reset to $0.40 monthly and halved again to $0.20 beginning with the April 2026 ex-dividend date. Over the trailing 12 months the fund paid $3.80 per share, against $2.40 going forward. The longer record shows repeated resets too, including a 2020 cut from $0.135 to $0.0675. Meanwhile, the shares are down 29.12% year to date and 10.93% in the past month. A falling price is propping up that yield.

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