3 Ultra-High Dividend Yield Stocks for the New Year

Core Viewpoint - The current political climate in the United States is creating uncertainty for investors regarding asset distribution, with differing opinions on the impact of a new administration on stock performance and inflation [1] Group 1: Dividend Stocks - Investors who are bearish about the market may consider dividend stocks for their stability during downturns, as these stocks provide regular passive income [2] - Financial firms have attracted significant investment, particularly hedge funds, with Prospect Capital Corp. noted for its high dividend yield of 16.3% [2] - Prospect Capital has a market capitalization of $2 billion and a strong debt-to-equity ratio of 0.68, making it competitive among business development companies [3] Group 2: AGNC Investment Corp - AGNC Investment Corp. offers a dividend yield of 15.05% and is involved in residential mortgage-backed securities, benefiting from potential lower mortgage rates [6] - Despite a recent decline in share price, AGNC's stock has increased nearly 11% over the past year, and its price-to-book ratio is currently at 1.06, indicating affordability [6] - Historical trends suggest that reinvesting dividends may maximize total returns for AGNC investors, as dividend payouts have fluctuated with stock prices [7] Group 3: Rithm Capital - Rithm Capital has a dividend yield of 9.33% and a diversified portfolio that includes consumer loans and both residential and commercial real estate, which helps mitigate risk [8] - The company has demonstrated strong annualized three-year dividend growth of 25.99% and has a price-to-book ratio of 0.86, suggesting potential for significant growth [9][10] - Rithm Capital is rated a Moderate Buy by analysts, with expectations of over 19% upside potential, although caution is advised regarding high dividend yields [10][11]