Four dividend stocks can turn $100,000 into a steady income stream, but the highest-yielding names carry a risk most investors never check before collecting their first payment.
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
Retirement planning usually comes down to two numbers: how much you have saved, and how much those savings can pay you business won in the last three years. Shares rose $1.63 to $27.10 in midday trading.
A reported GAAP net loss of $988 million in the fiscal third quarter came from a $1.05 billion non-cash goodwill impairment. Cash generation tells a different story: non-GAAP EPS of $2.92 beat the $2.81 estimate, and free cash flow reached $221 million. Full-year guidance calls for non-GAAP EPS of $10.97 to $11.09, which well covers the $1.48 forward annual dividend. The board recently raised the quarterly payout to $0.37 from $0.36, payable November 3, 2026, and has $396.6 million left on its buyback program.
- Forward Yield: 9.85%
- Shares for $25,000: 1,367.6
- Annual Passive Income: ~$2,461.71
RMR Group (NASDAQ:RMR) is an alternative asset manager. It makes base management and incentive fees from a family of publicly traded REITs, the Sonesta hotel business, and RMR Residential. The model needs very little capital, so most of its cash can go back to shareholders, and which is the main reason for its high yield. The share price also shows a shrinking fee base: assets under management fell to $37.14 billion from $39.84 billion a year earlier.
Coverage needs a close look. Fiscal second-quarter adjusted EPS of $0.11 missed the $0.14 estimate and fell well short of the $0.45 quarterly dividend. Trailing diluted EPS of $1.15 is also below the $1.80 forward payout. CEO Adam Portnoy said two managed REITs are on pace to generate about $33 million in incentive fees for calendar 2026, which would add to recurring fees. RMR has held the dividend at $0.45 for the last twelve quarterly payments, and the next one is due November 12, 2026. It is also expanding through a $350 million Greenwich multifamily joint venture.
Seven Hills Realty Trust
- Forward Yield: 16.23%
- Shares for $25,000: 3,623.2
- Annual Passive Income: ~$4,057.97
Seven Hills Realty Trust (NASDAQ:SVEN) is a commercial mortgage REIT managed by Tremont Realty Capital, part of RMR. Its portfolio is 100% floating-rate first mortgage loans at a weighted average of SOFR+3.54%, with no realized losses. Its office exposure has dropped to 19% from 23%. As a REIT, it must pay out most of its taxable income, and that income is the spread between its loan rates and its cost of funding. The rest of the yield comes from valuation: the stock trades at $6.90 per share, compared with a book value of $14.15 per share.
Distributable earnings are the right measure here, and they show the risk. Second-quarter distributable earnings of $0.23 per share fell short of the $0.28 distribution, a 122% payout ratio. A $4.92 million credit-loss provision pushed GAAP results to a loss. The company had already cut the distribution to $0.35 in 2025. CEO Tom Lorenzini aims to cover the dividend by year-end 2026 through new loans, after $75 million in second-quarter originations and another $24 million in July.
What $100,000 Produces Each Year
Name
Forward Yield
Annual Dividend Income
Apogee Enterprises
2.60%
$650.92
Concentrix
5.46%
$1,365.31
RMR
9.85%
$2,461.71
Seven Hills Realty Trust
16.23%
$4,057.97
Total
8.54%
$8,535.91
Together, these four positions generate $8,535.91 in annual passive income on a $100,000 investment, for a combined yield of 8.54%. Seven Hills contributes $4,057.97, RMR adds $2,461.71, Concentrix supplies $1,365.31, and Apogee rounds out the group with $650.92.
The payout schedule adds to the appeal. All four companies have their next payouts scheduled for November, so the group acts like a quarterly paycheck. The mix also matters. The two highest yielders carry the most coverage risk, while Concentrix and Apogee pay smaller amounts supported by much stronger earnings. Reinvesting those payments during the working years raises the share count each quarter, which in turn raises the income available once the checks are needed for living expenses. (That is the whole point of a dividend ladder, and we laid out how to build one that never forces a sale in a free guide here.)
Contact [email protected] for any questions or corrections.
Lee Jackson has covered Wall Street analysts’ equity and debt research and equity strategy daily for 24/7 Wall St. since 2012. His broad, diverse career, including a stint as creative services director at an NBC affiliate in Austin, Texas, gives him unique insight into the financial industry.
Lee Jackson’s journey in the financial industry spans more than 30 years, including nearly two decades as an institutional equity salesperson at Bear Stearns, Lehman Brothers, and Morgan Stanley. His career spanned pivotal sell-side Wall Street events, from the dot-com rise and bubble to the Long-Term Capital Management debacle, 9/11, and the Great Recession of 2008. This reflects his resilience and adaptability amid market volatility.
Lee Jackson’s practical financial industry experience, gained through a career at some of the biggest banks and brokerage firms, is complemented by a lifetime of writing across various platforms. This unique combination allows him to shed light on the intricacies of Wall Street in a way only someone with deep insider experience and knowledge can. Moreover, his extensive network across Wall Street continues to provide direct access for him and 24/7 Wall St., a privilege few firms enjoy.
Since 2012, Jackson’s work for 24/7 Wall St. has been featured in Barron’s, Yahoo Finance, MarketWatch, Business Insider, TradingView, Real Money, The Street, Seeking Alpha, Benzinga, and other media outlets. He attended the prestigious Cranbrook Schools in Bloomfield Hills, Michigan, and has a degree in broadcasting from the Specs Howard School of Media Arts.
