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Is It Time to Load Up on These 3 Ultra-High-Yielding Dividend Stocks? (1 Yields 11%!)

newsfeedback@fool.com (Matt DiLallo)
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⚡ Quantum Brief
Three high-yield dividend stocks—Ares Capital (11%), Energy Transfer (6.9%), and Starwood Property (11.2%)—outperform the S&P 500’s 1.2% average yield, offering income investors rare opportunities in a low-yield market. Ares Capital, the largest publicly traded BDC, boasts 16 years of stable dividends, backed by a $29.5 billion loan portfolio focused on senior secured debt, minimizing defaults and ensuring payout reliability. Energy Transfer, an MLP, targets 3–5% annual distribution growth, supported by 90% fee-based cash flow and $5 billion in 2026 expansion projects, leveraging rising oil prices for additional earnings. Starwood Property Trust diversifies beyond commercial mortgages into residential loans and net-lease properties, securing its decade-long dividend stability with long-term leases and escalating rents. All three stocks trade below 52-week highs—Ares down 20%, Starwood 15%—amplifying yields, making them timely buys for investors seeking high, sustainable income streams.
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By Matt DiLallo – Mar 29, 2026 at 7:20AM ESTKey PointsAres Capital has paid a stable or growing dividend for over 16 years. Energy Transfer aims to increase its distribution by 3% to 5% each year. Starwood Property has delivered over a decade of dividend stability. The average dividend yield is rather low these days. We see this in the S&P 500's dividend yield, which is around 1.2% and near the all-time low. However, not all stocks offer unappealing dividends. Here are three companies with monster yields that income-seeking investors might want to load up on right now. Image source: Getty Images.

Ares Capital Ares Capital (ARCC 2.57%) currently yields 10.7%. The business development company (BDC) has a rock-solid record of paying dividends. It has paid a stable or growing dividend for over 16 years. That's impressive, considering that several other BDCs have had trouble maintaining their dividends over the years. One of the keys to Ares' success is its scale. It's the largest publicly traded BDC, with a $29.5 billion investment portfolio across 600 companies. It primarily provides direct loans and other investments to private middle market companies ($100 million to $1 billion of annual revenue). Ares mainly invests in senior secured loans, giving it the highest priority for repayment should the borrower file for bankruptcy. Its strong underwriting has led to minimal loan losses over the years. ExpandNASDAQ: ARCCAres CapitalToday's Change(-2.57%) $-0.46Current Price$17.46Key Data PointsMarket Cap$13BDay's Range$17.40 - $17.8352wk Range$17.40 - $23.41Volume179KAvg Vol7.4MGross Margin75.68%Dividend Yield11.00% Ares Capital currently generates earnings in excess of its dividend and has built up a cushion of undistributed income. That puts its payout on a firm foundation. Ares also has strong liquidity, enabling it to continue growing its loan portfolio. With its stock price currently down more than 20% from its 52-week high, now looks like a great time to load up on the high-quality, high-yielding BDC.

Energy Transfer Energy Transfer's (ET +1.18%) distribution currently yields 6.9%. The master limited partnership (MLP) -- an entity that sends a Schedule K-1 Federal tax form each year -- has increased its payout every quarter since the end of 2021. It aims to raise its distribution by 3% to 5% per year. ExpandNYSE: ETEnergy TransferToday's Change(1.18%) $0.23Current Price$19.67Key Data PointsMarket Cap$68BDay's Range$19.42 - $19.8252wk Range$14.60 - $19.82Volume17MAvg Vol16MGross Margin12.27%Dividend Yield6.74% The MLP generates substantial stable cash flow, as fee-based sources account for 90% of its annual earnings. Energy Transfer produced enough cash to cover its high-yielding distribution by a comfortable 1.8 times last year. That enabled it to retain billions of dollars to reinvest in the partnership. Energy Transfer expects to invest at least $5 billion into growth capital projects this year. It has expansions lined up through 2030. That should give the MLP plenty of fuel to continue growing its high-yielding payout. Its compelling combination of income and growth makes it a terrific passive income investment right now, especially since higher oil prices should boost its non-fee-based earnings.

Starwood Property Trust Starwood Property Trust (STWD 2.29%) has the highest yield in this group at 11%. The real estate investment trust (REIT) has been a model of dividend stability over the years. It has paid a stable dividend for over a decade. ExpandNYSE: STWDStarwood Property TrustToday's Change(-2.29%) $-0.40Current Price$17.05Key Data PointsMarket Cap$6.3BDay's Range$17.02 - $17.4152wk Range$16.59 - $21.05Volume90KAvg Vol3.7MGross Margin84.95%Dividend Yield11.27% One of the keys to Starwood's income stability is its increasing diversification. The leading commercial mortgage REIT has expanded from investing in mortgages backed by commercial real estate to also invest in residential and infrastructure loans, as well as directly in properties. For example, Starwood acquired net lease platform Fundamental Income Properties for $2.2 billion last year. It owns a portfolio of properties secured by long-term net leases (a 17-year weighted-average lease term and 2.2% average annual rental escalations). It will provide the REIT with a stable, growing source of income to support its dividend. Starwood expects its investments, such as Fundamental Income and others across its diversified portfolio, to boost its earnings in the future. That should enhance its ability to pay dividends while growing shareholder value. With its stock price currently down more than 15% from its 52-week high, driving up its dividend yield, now's a great time for income investors to load up on Starwood. Big-time income investments Ares Capital, Energy Transfer, and Starwood Property currently offer ultra-high-yielding income streams. They have solid records of delivering stable to growing dividends, which seems likely to continue. That makes them look like ideal income stocks to buy right now. Read NextMar 21, 2026 •By Dave KovaleskiMy Top 3 Dividend Stocks for March 2026Mar 15, 2026 •By Keith Speights3 Magnificent High-Yield Dividend Stocks to Buy and HoldMar 29, 2026 •By Keith SpeightsThe Only Stock Warren Buffett Is Clearly Buying Right NowMar 29, 2026 •By Motley Fool StaffMake Your Money Last, and the E-Shaped EconomyMar 28, 2026 •By Bryan WhiteProgressive Had a Remarkable Run. Now Comes the Hard Part.Mar 29, 2026 •By Matthew BenjaminThe Oil Market Is in Backwardation.

That Could Be Very Good News.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 MentionedAres CapitalNASDAQ: ARCC$17.45(-2.62%)-$0.47Energy TransferNYSE: ET$19.67(+1.18%)+$0.23Starwood Property TrustNYSE: STWD$17.05(-2.29%)-$0.40*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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