3 High Dividend Stocks To Sell

Dividend stocks are naturally appealing for income investors, but not all dividend stocks are buys.

Income investors generally want to avoid dividend cuts whenever possible. Not only does a dividend cut result in a loss of income, but a company’s share price typically declines after announcing a dividend reduction or suspension.

Income investors should try to avoid dividend cuts or elimination as much as possible. As a result, these risky high dividend stocks have sell ratings from Sure Dividend.

Cross Timbers Royalty Trust (CRT)

Cross Timbers Royalty Trust is an oil and gas trust (about 50/50), set up in 1991 by XTO Energy.

Its unitholders have a 90% net profit interest in producing properties in Texas, Oklahoma, and New Mexico; and a 75% net profit interest in working interest properties in Texas and Oklahoma.

In mid-May, CRT reported (5/14/25) results for the first quarter of fiscal 2025. Oil and gas volumes grew 4% and 19%, respectively, over the prior year’s quarter. The average realized prices of oil and gas dipped -6% and -10%, respectively, but distributable cash flow (DCF) per unit grew 12% thanks to higher volumes.

Essentially all the royalty income (cash) the trust receives is passed through to unit holders. The trust has generated an average distributable and distributed cash flow of $1.24/unit annually for the past 10 years, though with a noticeable decrease in the past eight years, until 2022. The distribution trend essentially parallels the trend in oil and gas prices. 

Moreover, CRT estimates that the rate of natural production decline of its oil and gas properties is 6%-8% per year. This is a significant headwind for future returns. We also expect lackluster prices of oil and gas in the upcoming years due to the record number of renewable energy projects that are under development right now, as most countries are doing their best to diversify away from fossil fuels.

On the positive side, the trust has been in continuous existence for 34 years paying an average 9.1% yield in the last decade (albeit with some volatility in the distributions). However, future distributions are highly unpredictable due to the absence of any guidance and the unknown path of oil and gas prices.

Timbercreek Financial Corp. (TBCRF)

Timbercreek Financial is a Canadian non-bank lender specializing in shorter-duration, structured financing solutions for commercial real estate investors.

The company provides primarily first-mortgage loans for income-producing properties, including multi-residential, retail, industrial, and office assets. Its loans are typically used for acquisition, redevelopment, or transitional financing, and are often repaid through term financing or asset sales.

Timbercreek’s portfolio is 100% commercial real estate-focused and highly urban, with about 92% of capital invested in Ontario, British Columbia, Quebec, and Alberta.

On July 30th, 2025, Timbercreek Financial reported its Q2 results. Distributable income for the quarter was $10.7 million, or $0.13 per share, compared to $11.9 million, or $0.15 per share, in Q2 2024.

This reflected a slightly lower average portfolio yield and a modest increase in expected credit loss, offset by higher average portfolio balances.

Net investment income was $18.4 million, down from $19.3 million in Q2 2024. Net income fell to $9.0 million, or $0.11 per share, from $11.2 million, or $0.14 per share, mainly due to higher expected credit loss provisions despite a larger mortgage portfolio and reduced financing costs.

While there have been no principal losses to date, the increase in Stage 2 and 3 loans during tougher market periods, like 2023, highlights the portfolio’s sensitivity to shifts in credit conditions. Timbercreek’s edge lies more in speed and flexibility, as it serves borrowers traditional lenders often can’t, than in risk aversion. The floating-rate, short-duration loan structure does add adaptability, but the business overall is more cyclical and opportunity-driven than it is defensive.

Stellus Capital (SCM)

Stellus Capital Management provides capital solutions to companies with $5 million to $50 million of EBITDA and does so with a variety of instruments, the majority of which are debt.

Stellus provides first lien, second lien, mezzanine, convertible debt, and equity investments to a diverse group of customers, generally at high yields, in the US and Canada.

Stellus posted second quarter earnings on August 7th, 2025, and results were largely in line with expectations. Net investment income came to 34 cents per share, while core net investment income was a penny better at 35 cents per share.

Total investment income was $25.7 million, which was down slightly from $26.6 million a year ago. This is Stellus’ measure of revenue.

Gross operating expenses were $17.1 million, up from $16.5 million year-over-year. Fees and expenses related to borrowings were up from $3.9 million to $4.3 million. Net investment income was down from $11.8 million to $9.6 million, and on a per-share basis declined 14 cents to 34 cents. The investment portfolio had a net change in unrealized appreciation of $1.4 million, much better than the $5.6 million depreciation a year ago.

Stellus, like most BDCs, has a difficult time growing NII. The combination of high funding costs (generally with debt and/or preferred stock) as well as varying yields on the company’s debt portfolio, make it difficult to offset a rising share count over time. Stellus has reset much of its investment portfolio with higher rates, leading to a very strong portfolio yield. However, a possible headwind to this is interest rates declining off of currently elevated levels.

Stellus, like other BDCs, has no competitive advantages. It offers the same products as any other BDC to the same set of customers, so advantages are virtually impossible to achieve. In addition, BDCs suffer mightily during recessions because borrowers have a more difficult time meeting repayment timelines.