3 Ultra-High-Yield Dividend Stocks That Are Screaming Buys in 2026

Core Insights - The article highlights the potential of high-yield dividend stocks, averaging an 8.51% yield, as attractive investment opportunities for the upcoming year [1][6]. Group 1: Performance of Dividend Stocks - An analysis by Hartford Funds indicates that high-quality dividend stocks have historically outperformed non-payers, achieving an average annual return of 9.2% compared to 4.31% for non-payers over 51 years [3]. - Dividend stocks exhibit lower volatility than both the S&P 500 and non-dividend-paying companies, making them a more stable investment choice [3]. Group 2: Specific High-Yield Stocks - Sirius XM Holdings: Offers a 5.24% yield and benefits from a unique operating model as a legal monopoly in satellite radio, providing strong subscription pricing power [6][7]. The company generates 80% of its revenue from subscriptions, making it less vulnerable to economic downturns compared to traditional radio operators [9]. - Enterprise Products Partners: This midstream energy company has a yield of 6.84% and has increased its annual payout for 27 consecutive years. It operates on fixed-fee contracts, ensuring predictable cash flow [13][15]. The company is expected to see double-digit cash flow growth in 2026, making it a bargain at an estimated 7.7 times forward-year cash flow [19]. - PennantPark Floating Rate Capital: A business development company with a 13.44% yield, it invests primarily in debt securities of small companies with limited access to traditional financing. Its variable-rate structure allows it to maintain high yields even in changing interest rate environments [20][24]. The company is trading at a 16% discount to its book value, indicating a potential bargain [26].