Why I Just Bought These 3 Ultra-High-Yield Dividend Stocks

Group 1: Ares Capital - Ares Capital offers an ultra-high forward yield of 8.6%, making it an attractive investment option [2] - The company has paid a stable or growing dividend for 15 consecutive years, indicating a strong commitment to returning capital to shareholders [2] - Ares Capital's total cumulative return since its founding in 2004 is 70% higher than the S&P 500, showcasing its strong performance [3] - The demand for financing alternatives for middle-market businesses is significant and growing, allowing Ares Capital to be selective in its investments [4] Group 2: Energy Transfer - Energy Transfer operates over 130,000 miles of pipelines, providing a stable business model that generates reliable cash flow [5][7] - The company's forward distribution yield is 6.9%, with management expecting to increase distributions by 3% to 5% annually [6] - U.S. demand for natural gas is growing, particularly due to the rise of AI and new energy-hungry data centers, positioning Energy Transfer for future growth [8] Group 3: Pfizer - Pfizer has a forward dividend yield of 6.7%, one of the highest in the healthcare sector, providing a strong foundation for total returns [9] - The company's share price has declined due to falling COVID-19 product sales and impending patent expirations, but the worst sales declines appear to be over [10][11] - Pfizer's shares trade at approximately 8.7 times forward earnings, with a low price/earnings-to-growth (PEG) ratio of 0.61, suggesting that current challenges are reflected in the share price [12]