Investing $3,000 Into These 3 Ultra-High-Yielding Dividend Stocks Could Generate Hundreds of Dollars in Annual Passive Income

By Matt DiLallo – Feb 23, 2026 at 9:15AM ESTKey PointsAGNC Investment has maintained its big-time monthly dividend for more than five consecutive years. Ares Capital has delivered a stable or increasing dividend for more than 16 years.

Western Midstream Partners expects to grow its hefty distribution at a low-to-mid single-digit annual rate. We’re bullish on these 10 stocks ›NASDAQ: AGNCAGNC Investment Corp.Market Cap$12BToday's Changeangle-down(-0.31%) $0.04Current Price$11.41Price as of February 23, 2026 at 10:33 AM ETThese companies can turn $3,000 into a lucrative income stream.The S&P 500 currently has a rather pedestrian dividend yield of around 1.1%. That's near its record low. As a result, you'd only generate about $34 of annual passive income by investing $3,000 into an S&P 500 index fund. Several companies offer dividend yields well above the market average. That enables you to generate a lot more income from the same investment. For example, investing $3,000 into the following three ultra-high-yielding dividend stocks would produce hundreds of dollars in passive income each year: Dividend Stock Investment Current Yield Annual Dividend Income AGNC Investment (AGNC 0.31%) $1,000.00 12.6% $125.80 Ares Capital (ARCC 0.68%) $1,000.00 10% $100.30 Western Midstream Partners (WES +0.02%) $1,000.00 8.9% $88.60 Total $3,000.00 10.5% $314.70 Data source: Google Finance and the author's calculations. Here's a closer look at this trio of high-yielding dividend stocks. Image source: Getty Images. AGNC Investment AGNC Investment is a real estate investment trust (REIT). It invests exclusively in Agency mortgage-backed securities (residential mortgage pools guaranteed against losses by government agencies such as Fannie Mae). These fixed-income investments have lower risk profiles and offer lower returns (low-to-mid single-digit yields). The mortgage REIT boosts its returns with leverage. For example, its portfolio earned a 16% return on equity in the fourth quarter. That's high enough to cover its operating costs and high-yielding monthly dividend. ExpandNASDAQ: AGNCAGNC Investment Corp.Today's Change(-0.31%) $-0.04Current Price$11.41Key Data PointsMarket Cap$12BDay's Range$11.41 - $11.5652wk Range$7.85 - $12.19Volume4.5MAvg Vol21MGross Margin100.00%Dividend Yield12.58% The REIT can maintain its current dividend level as long as its returns remain in alignment with its costs. That has been the case for the past five years. Right now, the investment environment is very positive. That bodes well for AGNC Investment's ability to continue paying its currently very lucrative dividend.

Ares Capital Ares Capital is a business development company (BDC). It provides capital (primary loans) to private middle market companies ($100 million to $1 billion in annual revenue). It's the largest BDC, with $29.5 billion invested across 600+ portfolio companies. Ares' investment portfolio currently has a weighted average yield of 9.3%. This interest income supports its lucrative dividend. ExpandNASDAQ: ARCCAres CapitalToday's Change(-0.68%) $-0.13Current Price$19.02Key Data PointsMarket Cap$14BDay's Range$18.97 - $19.3252wk Range$18.26 - $23.63Volume67KAvg Vol5.7MGross Margin75.68%Dividend Yield10.03% The BDC routinely raises additional capital to grow its portfolio. Ares made $5.8 billion of new investment commitments across 30 new and 84 existing portfolio companies last quarter, partially offset by $4.7 billion of exited investments. The company raised a record $4.5 billion of new gross debt commitments last year to support its growing portfolio. Ares' growing portfolio has enabled it to pay a stable or growing dividend for over 16 consecutive years. The company currently generates earnings in excess of its dividend, providing a sustainable foundation for its hefty payout.

Western Midstream Partners Western Midstream Partners is a master limited partnership (MLP), an entity that sends a Schedule K-1 Federal tax form each year. The company operates energy midstream assets, including pipelines and processing plants, to support oil and gas production. Most of its assets operate under long-term, fixed-rate contracts, providing it with stable cash flows. ExpandNYSE: WESWestern Midstream PartnersToday's Change(0.02%) $0.01Current Price$41.11Key Data PointsMarket Cap$16BDay's Range$40.86 - $41.3552wk Range$33.60 - $44.74Volume369KAvg Vol1.3MGross Margin52.29%Dividend Yield8.86% The MLP generated enough cash flow last year to cover its distribution and the capital expenditures to maintain and expand its midstream assets with $95 million to spare. That excess free cash flow enhanced its financial flexibility. It used some of its financial capacity to acquire Aris Water Solutions. Western Midstream plans to invest up to $1 billion in capital expenditures this year. Its growth-related spending will help grow its cash flow in the future. That should support continued distribution increases. Western Midstream raised its distribution by 4% last year and plans to increase it by another 2.2% in 2026, aligning with its target of delivering low-to-mid single-digit annual distribution growth. Big-time income stocks AGNC Investment, Ares Capital, and Western Midstream have huge dividend yields. They all have solid records of at least maintaining their dividend payments in recent years, which should continue as long as there isn't a meaningful market disruption. That makes them enticing options for those seeking to turn $3,000 into hundreds of dollars in annual passive income. Read NextFeb 18, 2026 •By Reuben Gregg BrewerAGNC Investment Stock Is Interesting, but Here's What I'd Buy InsteadFeb 17, 2026 •By Matt DiLalloShould You Invest $500 In AGNC Investment Right Now?Feb 13, 2026 •By Matt DiLalloBetter Ultra-High-Yield Dividend Stock: AGNC Investment vs. Ares CapitalFeb 13, 2026 •By Reuben Gregg BrewerIs AGNC Investment Stock a Millionaire Maker?Feb 11, 2026 •By Leo SunThe 1 Stock I'd Buy Before AGNC Investment Right NowFeb 9, 2026 •By Matt DiLallo3 Monster Dividend Stocks With Yields of Up To 12.5%About the AuthorMatt DiLallo has been a contributing Motley Fool stock market analyst specializing in covering dividend-paying companies, particularly in the energy and REIT sectors, since 2012. He also covers pre-IPO companies, ETFs, and other investing topics. He holds an MBA from Liberty University.TMFmd19X@MatthewDiLalloStocks MentionedAGNC Investment Corp.NASDAQ: AGNC$11.41 (0.31%) $0.04Ares CapitalNASDAQ: ARCC$19.02 (0.68%) $0.13Western Midstream PartnersNYSE: WES$41.11 (+0.02%) $+0.01*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.