Core Viewpoint - The January non-farm payrolls report revealed 130,000 new jobs and a drop in unemployment to 4.3%, leading to a reduction in expected Federal Reserve rate cuts for the year, making ultra-high-yield dividend stocks more attractive for income-focused investors [1][2]. Group 1: Economic Indicators - The non-farm payrolls report for January showed a surprising addition of 130,000 jobs, significantly exceeding Wall Street's expectations of 70,000-80,000 [1]. - Unemployment decreased to 4.3%, indicating a robust job market [1]. Group 2: Federal Reserve Rate Cuts - Predictions for 2.5 rate cuts this year were reduced to 2 following the jobs report, with potential for no cuts until summer if the upcoming consumer price index is below expectations [1]. - The expectation of prolonged higher interest rates diminishes the likelihood of rate cuts, making high-yield dividend stocks more appealing [1]. Group 3: Investment Opportunities - Ultra-high-yield stocks, offering dividends between 7% and 10%, are highlighted as attractive options for investors seeking passive income in a high-rate environment [1]. - Ares Capital Corporation, yielding 9.94%, specializes in financing solutions for middle-market companies and has received a Buy rating from 12 analysts [1][2]. - Energy Transfer, with a 7.16% distribution yield, operates a vast network of energy assets across the U.S. and has an Overweight rating from JPMorgan with a $21 target price [2]. - Healthpeak Properties, a REIT focused on healthcare real estate, offers a 7.24% dividend and has an Outperform rating with a $20 target price [2]. - Plains All American Pipeline, yielding 7.68%, operates midstream energy infrastructure and is poised for a breakout, with a Buy rating and a $25 target price from UBS [2]. - Starwood Property Trust, with a 10.60% dividend yield, operates in various segments including commercial and residential lending, and has an Outperform rating with a $21 target [2].

Albert Anthony is the pen name of a Croatian-American business author who is a contributing analyst on investor platform & financial media site Seeking Alpha, where he has over +1,000 followers, & also has written for platforms like Investing dot com. He is the author of a new book on Amazon called Real Estate Investment Trusts (REITs): A Fundamental Analysis (2026 Edition).The author's career focus as a business & information systems analyst also included the IT department at top 10 financial firm Charles ...

Core Viewpoint - The article highlights three under-the-radar dividend stocks that offer attractive yields, significantly higher than the S&P 500's current yield of approximately 1.1% [1]. Group 1: Ares Capital - Ares Capital (ARCC) has a dividend yield of 9.5% and operates as a business development company (BDC), required to pay out at least 90% of its taxable income as dividends [2]. - The company has maintained stable-to-increasing dividends for 16 years, despite challenges faced by many BDCs [2]. - Ares Capital focuses on providing capital to middle-market companies with annual revenues between $100 million and $1 billion, generating income through direct loans and equity investments [3]. Group 2: Starwood Property Trust - Starwood Property Trust (STWD) leads with a dividend yield of 10.7% and has never cut its dividend since its IPO in 2009 [6]. - The REIT has maintained its dividend payout rate for over a decade, despite challenges faced by other REITs [6]. - Starwood has diversified its investments from commercial mortgages to high-quality real estate assets and infrastructure lending, which has reduced risk and provided new growth opportunities [9]. - The recent $2.2 billion acquisition of Fundamental Income Properties added 467 properties with long-term leases, enhancing its rental income stability [10]. Group 3: Western Midstream Partners - Western Midstream Partners (WES) offers a distribution yield of 9% and operates as a master limited partnership (MLP) [11]. - The MLP reset its distribution level in 2020 due to the pandemic but has since rebuilt its payout to above pre-pandemic levels [11]. - The company owns energy midstream assets that generate stable cash flow, which is used for distributions and growth investments [13]. - Western Midstream aims to increase its high-yielding payout at a low-to-mid single-digit annual rate and has recently closed a $2 billion acquisition of Aris Water Solutions [14].

Core Viewpoint - Starwood Property Trust will release its fourth quarter and full year 2025 financial results on February 25, 2026, before the market opens, followed by a conference call to discuss performance and recent events [1][2]. Financial Results Announcement - The financial results will be announced on February 25, 2026, prior to the opening of trading on the New York Stock Exchange [1]. - A conference call is scheduled for the same day at 10:00 a.m. Eastern Time to review performance and address questions [2]. Conference Call Details - The conference call will be accessible via the Investor Relations section of the company's website, with a live broadcast available [3]. - Participants are advised to register at least 15 minutes before the call and can access a replay for 90 days post-call [3]. Participation Information - To join the conference call, participants should dial in five minutes before the start time, with specific numbers provided for domestic and international callers [4]. - A playback option is available for those who wish to listen to the call after it has concluded [4]. Company Overview - Starwood Property Trust, an affiliate of Starwood Capital Group, focuses on real estate and infrastructure sectors, having deployed over $112 billion of capital since inception [5]. - The company manages a portfolio exceeding $30 billion across debt and equity investments, aiming to generate attractive and stable returns primarily through dividends [5].

Core Thesis - Starwood Property Trust, Inc. is positioned as a high-yielding REIT primarily for income-focused investors, emphasizing dividends over rapid capital appreciation [2][6] Company Overview - Founded in 2009, Starwood has deployed over $112 billion in capital and currently manages a diversified portfolio worth $29.9 billion, with more than half in commercial loans [3] - The portfolio is geographically diverse, heavily weighted towards multifamily and industrial assets, and structured with floating rate loans to perform across interest rate cycles [3] Financial Performance - Starwood's dividend yield exceeds 10 percent, supported by ongoing distributable earnings and $3.82 per share in excess unrealized distributable earnings from property gains [4] - The company has maintained a stable $0.48 quarterly dividend since 2014, with no cuts, which is notable among mortgage-focused REITs [4] Future Outlook - Management anticipates earnings improvement as interest rates decline and transaction activity increases, backed by strong liquidity [5] - Valuation is assessed through a dividend-based framework, suggesting fair value around the high teens, aligning with the current share price [5]

Group 1: Market Performance - The Russell 2000 index has outperformed the S&P 500 in 2026, rising 5.6% compared to the S&P 500's 1.2% gain, driven by a domestic economic rebound and increased risk appetite for small-cap stocks [1] - Small-cap companies are benefiting from falling interest rates, improved access to credit, and rising mergers-and-acquisitions activity, which lower their cost of capital and unlock growth [2] - After years of underperformance, the Russell 2000 entered 2026 at historically attractive relative valuations, setting the stage for potential multiple expansion as investors shift focus to cyclical growth [3] Group 2: Company Insights - Ares Capital Corp. specializes in financing solutions for middle-market companies, has a Buy rating from 12 analysts, and offers a 9.36% dividend yield [6] - Hercules Capital Inc. focuses on providing financing to venture capital-backed companies, has an 8.57% dividend yield, and aims to increase net income through investments in structured debt [11] - Starwood Property Trust Inc. operates as a real estate investment trust (REIT) with a 10.60% dividend yield, managing investments across various segments including commercial and residential lending [19][20] Group 3: Investment Opportunities - Four small-cap stocks with solid upside potential and high-yield dividends have been identified as attractive buys for growth and income investors [5] - Ares Capital, Hercules Capital, Marine Products, and Starwood Property Trust are highlighted as strong candidates for investment due to their dividend yields and growth prospects [5][14][19]

Core Insights - AGNC Investment Corporation (AGNC) shares have increased by 14.2% over the past six months, outperforming the industry growth of 2.3% and the S&P 500 Index's rise of 11.8% [1] - The company's peers, Annaly Capital Management (NLY) shares have risen by 14.8%, while Starwood Property Trust, Inc. (STWD) shares have decreased by 13.1% during the same period [1] Performance Drivers - Easing mortgage rates have positively impacted AGNC's performance, with the average rate on a 30-year fixed-rate mortgage dropping to 6.15% as of December 31, 2025, down from 6.91% a year ago [5][6] - The Federal Reserve's interest rate cuts, including a 75 basis point reduction in 2025, are expected to ease earnings pressure and support AGNC's net interest income [7] - AGNC's disciplined and active portfolio management, including substantial hedges covering 68% of its outstanding investment securities, has helped mitigate risks from market fluctuations [9][10] Portfolio and Asset Management - AGNC maintains a significant exposure to Agency mortgage-backed securities (MBS), totaling $90.1 billion as of September 30, 2025, which supports its long-term growth outlook [12] - The company has actively adjusted its portfolio to reduce risks associated with interest rates and prepayments, focusing on higher-coupon investments [9][10] Financial Position - AGNC has a decent liquidity position, with $7.2 billion in liquidity as of September 30, 2025, allowing for opportunistic portfolio enhancements [13] - The company's leverage increased slightly to 7.6X, but remains at a conservative level, enabling effective capital deployment [14] Capital Management and Dividends - AGNC has committed to shareholder value through a new share repurchase program of up to $1 billion, authorized through December 31, 2026 [15][16] - The company currently offers a dividend yield of 13.43%, which is above the industry average of 12.60% [17] Market Challenges - AGNC's performance is sensitive to macroeconomic trends, with volatility in the mortgage market and interest rate swings affecting investment returns [20] - Despite easing mortgage rates, ongoing pressures in the residential mortgage sector pose significant near-term challenges for AGNC [21] Analyst Outlook - Analysts have a neutral stance on AGNC's earnings growth potential, with estimates indicating an 18.6% decline for 2025 and a modest growth of 1.3% for 2026 [25] - AGNC's price-to-book (P/B) ratio of 1.18X is above the industry's 0.96X, suggesting limited upside potential despite a favorable dividend yield [26][28]

Core Insights - The article expresses personal opinions on investment opportunities and does not serve as a recommendation for stock purchases or sales [2][3] Group 1 - The author has a beneficial long position in the shares of MO, STWD, and GPIQ through various financial instruments [1] - The article is intended for research and educational purposes, emphasizing the need for individual investors to conduct their own research [2] - It highlights that past performance is not indicative of future results, and opinions may not reflect the views of the platform as a whole [3]

Core Viewpoint - High dividend yields, such as 10% or more, can attract income-focused investors but often indicate significant underlying risks associated with the company's financial health [1][2]. Group 1: High-Yield Dividend Stocks - A list of high-yield dividend stocks includes FS KKR Capital Corp. (17.39%), Dynex Capital, Inc. (14.77%), and AGNC Investment Corp. (13.36%) among others, with market caps of at least $2 billion [4][6]. - The dividend yield is calculated as annual dividend divided by stock price, meaning a stock's yield can appear attractive if its price has significantly dropped [5][7]. Group 2: Risks Associated with High-Yield Stocks - A payout ratio exceeding 100% indicates that a company is using its capital to maintain dividends, which is unsustainable and may lead to dividend cuts [5]. - Companies in cyclical sectors may rely on debt to fund dividends during downturns, increasing the risk of bankruptcy [5]. - Investors should assess a company's free cash flow (FCF) to ensure it can sustain high dividend payments, as insufficient cash generation is a red flag [7][8]. Group 3: Tax Considerations - Many high-yield stocks, such as REITs and BDCs, pay non-qualified dividends, which are taxed at higher marginal income tax rates compared to qualified dividends from established companies [9][10]. - It is advisable for investors seeking high yields to consider holding non-qualified stocks in tax-advantaged accounts to mitigate tax liabilities [9].

Core Viewpoint - The article highlights three companies offering high dividend yields significantly above the S&P 500 average, which is currently around 1.1% [1] Group 1: Starwood Property Trust - Starwood Property Trust leads with a 10.3% dividend yield, supported by a diversified portfolio of income-producing properties and real estate-backed loans [3][4] - The REIT has maintained its dividend for over a decade and recently expanded its portfolio through a $2.2 billion acquisition, which includes 467 properties with a 17-year weighted average lease term and a 2.2% average annual rent escalation [4][6] - Starwood has made $10.2 billion in new investments in 2025, including a record $800 million in infrastructure lending, which supports its ability to continue paying high dividends [6] Group 2: Western Midstream Partners - Western Midstream Partners offers a 9.2% yield, generating stable cash flow from energy midstream infrastructure backed by long-term contracts [7][9] - The MLP expects to produce between $1.3 billion and $1.5 billion in free cash flow this year, sufficient to cover its distribution payments and capital expenditures [9][10] - The company has a strong balance sheet with a leverage ratio of 2.8 times and recently completed a $2 billion acquisition, which contributed to a 13% increase in its payout this year [9][10] Group 3: Verizon - Verizon provides a 6.8% yield, with a history of increasing its dividend for 19 consecutive years, supported by recurring revenue from mobile and broadband contracts [11][12] - The company generated $28 billion in cash flow from operations in the first nine months of the year, covering capital spending and dividend payments with a surplus of $7.2 billion [13] - Verizon anticipates generating more free cash flow in 2026 and is working on a $20 billion acquisition of Frontier Communications to enhance its service offerings [14]