Is Runway Growth Finance (RWAY) One of the Top 10 Dividend Stocks with 10%+ Yield?

June 29, 2026 - 23:17

Runway Growth Finance Corp. (RWAY) offers an eye-catching annual dividend yield of 25.47%, placing it among the top dividend stocks with yields exceeding 10%. For income-focused investors, such a high payout is hard to ignore. However, recent analyst actions suggest caution is warranted.

On June 15, Bank of America downgraded Runway Growth Finance from Neutral to Underperform. The firm also slashed its price target on the stock to $5.50 from a previous $9.00. The analyst cited concerns stemming from the company's first-quarter results as a key reason for the downgrade.

While the massive yield may attract investors looking for immediate income, the sharp price target cut signals potential trouble ahead. A high dividend yield can sometimes be a red flag, indicating that the stock price has fallen significantly, which inflates the yield percentage. When a major bank like BofA turns bearish, it raises questions about the sustainability of that payout.

Investors considering RWAY for its dividend must weigh the attractive yield against the risk of further price declines or a potential dividend cut. The 25% yield is not a guarantee of future returns, and the recent downgrade suggests that the company faces headwinds that could impact its financial health. For now, Runway Growth Finance remains a high-yield play, but one that comes with elevated risk.