What comes to mind when I mention Nasdaq stocks? I doubt many thought of ultra-high-yield dividend stocks. On the other hand, I suspect high-flying tech stocks were front and center in the thoughts of many readers.

The reality, though, is that the Nasdaq is chock-full of both high-flying tech stocks and stocks that offer exceptionally juicy dividends. Should you buy the three highest-paying dividend stocks in the Nasdaq? Here they are.

1. B. Riley Financial

B. Riley Financial (NASDAQ: RILY) is a Los Angeles-based financial services company. It focuses on investing in and acquiring companies. B. Riley also operates subsidiaries that provide asset management, brokerage, direct lending, investment banking, wealth management, and other services.

The company's forward dividend yield stands at nearly 33%. Why is B. Riley's yield so high? Mainly because the stock has plunged more than 70% so far this year.

B. Riley's troubles largely stem from a federal investigation of a hedge fund operated by Brian Kahn, a business partner of the company's founder and CEO, Bryant Riley. The hedge fund lost hundreds of millions of dollars for investors. Earlier this month, B. Riley received a federal subpoena from the U.S. Securities and Exchange Commission (SEC) related to the investigation of Kahn.

It hasn't helped matters that B. Riley posted a net loss of $5.1 million in the first quarter of 2024. The company also delayed submitting its second-quarter filing to the SEC. It said the filing couldn't be made on time "primarily due to delays experienced in finalizing the valuations of certain of the Company's loans and investments for the quarter ended June 30, 2024."

2. Icahn Enterprises LP

Icahn Enterprises LP (NASDAQ: IEP) is a master limited partnership (MLP) founded by billionaire Carl Icahn. It's a holding company that owns businesses in the automotive, food-packaging, energy, home fashion, pharmaceutical, and real estate industries.

The MLP's forward dividend yield tops 25%. Unlike B. Riley, Icahn Enterprises' ultra-high yield isn't due to a collapse in its share price. The stock is down year to date, but not by a huge percentage.

However, Icahn Enterprises was up by more than 25% early in 2024. The company's announcement of a $411 million decrease in net asset value (NAV) on Feb. 21 caused some unitholders to panic. This significant reduction in NAV stemmed largely from the underperformance of Icahn Enterprises' investments.

3. Service Properties Trust

Service Properties Trust (NASDAQ: SVC) is a real estate investment trust (REIT) that owns 220 hotels in the U.S., Canada, and Puerto Rico. The REIT also owns 749 retail properties across the U.S., including department stores, restaurants, and truck stops.

REITs must return at least 90% of their income to shareholders as dividends. Service Properties Trust pays a quarterly dividend of $0.20 per share, which translates to a forward dividend yield of over 18%.

Why is Service Properties Trust's dividend yield so high? Partially because its stock has plummeted nearly 50% year to date. The REIT continues to post hefty net losses. Its funds from operations (FFO) have also declined significantly year over year.

Are these highest-yielding Nasdaq stocks buys?

Investors should be leery of all three of these stocks, in my view. While their yields are tempting, I think these temptations should be avoided.

B. Riley Financial is the most worrisome of the group because of the SEC investigation. Perhaps everything will work out fine for the company. However, until the dark cloud passes, staying on the sidelines with this stock seems to be the smartest move.

Which is the most likely to rebound? I'd go with Service Properties Trust. The REIT should benefit if the Fed cuts interest rates in September. Its diversified lease portfolio also lowers risks to some extent.

Should you invest $1,000 in B. Riley Financial right now?

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Keith Speights has no position in any of the stocks mentioned. The Motley Fool recommends Nasdaq. The Motley Fool has a disclosure policy.

Should You Buy the 3 Highest-Paying Dividend Stocks in the Nasdaq? was originally published by The Motley Fool