High yield dividends reach up to 16.5% with these seven stocks for this week
In the world of investing, high dividend yields can be a beacon for income-seeking investors. However, as with any investment, it's essential to understand the risks involved. Two such stocks offering attractive dividend yields are Serica, a British gas and oil explorer, and Gladstone Capital, a Business Development Company based in the U.S.
Serica, with a current dividend yield of 16 percent, has caught the eye of many investors. Despite its strong cash position and operational efforts, the company faces several potential risks.
Production volatility and operational downtime have been a concern for Serica. In the first half of 2025, the company experienced a significant production drop due to extended downtime at the Triton FPSO platform. Such interruptions can reduce revenue and impact dividend sustainability.
Financial performance and profitability have also been a source of concern. Serica reported a loss after tax of $43 million in the first half of 2025, reflecting sensitivity to operational setbacks. Lower revenues and periodic losses could strain cash flow despite a strong balance sheet.
Dividend sustainability is another key risk. Although Serica aims to maintain its dividend at the current level, the dividend is partly funded by strong cash flow and hedging gains. Market fluctuations, production issues, or unexpected costs could pressure dividend payouts, making the high yield potentially risky.
Serica's cash flows depend largely on oil and gas prices, which are volatile and influenced by global markets. Despite hedging arrangements that generated unrealized gains recently, future price changes could negatively affect revenues and cash flows.
Development and capital expenditure risks are also present. While Serica completed a successful drilling program under budget and ahead of schedule, planned investments and expansions carry execution and regulatory risks that could affect future production and financial health.
Market and listing risks are another factor to consider. The planned move to the London Stock Exchange’s Main Market might bring more investor attention but also subjects the company to regulatory scrutiny and market pressures. Risks include share price volatility and liquidity.
On the other hand, Gladstone Capital, a Business Development Company that focuses on financing and refinancing medium-sized U.S. companies, currently offers a dividend yield of 7.9 percent. While it presents fewer risks compared to Serica, it's essential to understand the nature of Business Development Companies and the risks associated with lending to medium-sized companies.
In summary, while Serica demonstrates operational resilience, financial backing, and promising exploration results, the high dividend yield reflects the underlying risks from production volatility, commodity price dependence, recent losses, and execution uncertainties common in oil and gas exploration investments. Meanwhile, Gladstone Capital offers a more stable dividend yield, but potential investors should still understand the risks associated with lending to medium-sized companies.
For those seeking high dividend yields, it's crucial to conduct thorough research and consider the associated risks before making investment decisions. Resources like the BÖRSE ONLINE Global Dividend Stars Index can help in finding exciting dividend stocks.
Personal finance decisions regarding investing in Serica or Gladstone Capital should take into account the associated risks. Serica's high dividend yield of 16 percent, while attractive, is coupled with risks such as production volatility, operational downtime, financial performance, dividend sustainability, commodity price dependence, and development risks. On the other hand, Gladstone Capital provides a more stable dividend yield of 7.9 percent, yet investors should be aware of the risks associated with lending to medium-sized companies. It's essential to conduct thorough research and understand the inherent risks before making any investment decisions in personal-finance management.
