These companies offer attractive passive income streams.Many dividend stocks offer a pedestrian yield today. Due to a surging stock market and a deemphasis on paying dividends over the years, the S&P 500's yield is currently near its all-time low at around 1.1%. However, many stocks offer even higher yields. Here are three under-the-radar dividend stocks with monster yields of up to 10.7%. Ares Capital Ares Capital (ARCC 0.29%) currently has a 9.5% dividend yield. The business development company (BDC) oper ...

MIAMI BEACH, Fla., Jan. 27, 2026 /PRNewswire/ -- Starwood Property Trust (NYSE: STWD) today announced that the Company will release its fourth quarter and full year 2025 financial results on Wednesday, February 25, 2026, before the opening of trading on the New York Stock Exchange. A conference call will be held on Wednesday, February 25, 2026, at 10:00 a.m. Eastern Time. During the conference call, the Company's officers will review fourth quarter and full year performance, discuss recent events and condu ...

We came across a bullish thesis on Starwood Property Trust, Inc. on The Swedish Dividend Investor’s YouTube Channel. In this article, we will summarize the bulls’ thesis on STWD. Starwood Property Trust, Inc.'s share was trading at $17.88 as of January 13th. STWD’s trailing and forward P/E were 17.57 and 10.06 respectively according to Yahoo Finance. REIT Stocks Northstar Realty Finance NRF g0d4ather / shutterstock.com Starwood Property Trust is presented as a high yielding REIT designed primarily for i ...

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]

Analyst’s Disclosure:I/we have a beneficial long position in the shares of MO, STWD, GPIQ either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Disclaimer: I am not an investment advisor or professional. This article is my own personal opinion and is not meant to be a recommen ...

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]

Core Viewpoint - In a low-yielding environment, several companies are prioritizing dividend payments, offering significantly higher yields compared to the S&P 500's record low of around 1.1% [1][2]. Company Summaries - **Ares Capital**: Offers a 9.6% dividend yield, focusing on debt and equity investments in private middle-market companies. The company has maintained a stable to growing dividend for 16 years and committed to invest $3.9 billion in new and existing portfolio companies during Q3 [4][5]. - **Brookfield Renewable Partners**: Currently yields 5.5%, significantly higher than its corporate counterpart. The company generates steady cash flow through long-term power purchase agreements and plans to increase its dividend by 5% to 9% annually [7][8]. - **Energy Transfer**: Provides an 8.2% yielding distribution, operating a diversified platform of energy midstream assets. The company plans to invest $5.2 billion in growth projects in 2026, supporting a projected annual payout increase of 3% to 5% [9][11]. - **Starwood Capital**: Yields 10.4% and has diversified its portfolio beyond floating-rate commercial mortgages to include residential and infrastructure lending. The recent acquisition of Fundamental Income Properties for $2.2 billion aims to enhance dividend sustainability [12][13]. - **Vici Properties**: Offers a 6.5% yield, investing in high-quality properties secured by long-term net leases. The REIT has grown its dividend at a 6.6% compound annual rate since 2018 and has announced a $1.2 billion sale-leaseback transaction to support future growth [16][17]. Investment Opportunity - Companies like Brookfield Renewable, Energy Transfer, Ares Capital, Starwood Capital, and Vici Properties are highlighted as strong dividend stocks for 2026, backed by sustainable financial profiles and prioritizing shareholder payouts [18].

Group 1 - The focus is on growth and dividend income as a strategy for retirement planning [1] - The portfolio is structured to generate monthly dividend income that increases through reinvestment and annual raises [1] Group 2 - The article expresses personal opinions and is not intended as investment advice [2] - It emphasizes the importance of conducting individual research before making investment decisions [2]