3 Monster Dividend Stocks With Yields of Up To 12.5%

Core Viewpoint - The S&P 500's dividend yield is currently around 1.1%, near an all-time low, driven by rising stock prices and a reduced focus on dividends by many companies. However, there are notable exceptions with high dividend yields, including three significant stocks offering yields up to 12.5% [1]. Group 1: AGNC Investment - AGNC Investment leads with a 12.5% dividend yield, paying dividends monthly, which enhances its appeal for passive income [4]. - The company invests in Agency MBS, a $9.2 trillion market, leveraging these fixed-income assets to boost returns [5]. - Current strong market conditions for Agency MBS, along with falling interest rates, suggest AGNC can maintain its high monthly dividend [6]. Group 2: Ares Capital - Ares Capital has a 10% dividend yield, providing direct loans to middle-market companies, which generates interest income to support its dividend [7]. - The company has maintained or increased its dividend for over 16 consecutive years, with core earnings exceeding dividend payments, providing a cushion for potential earnings dips [8]. - Ares Capital's strong financial profile and record level of new investments position it well for continued dividend support [9]. Group 3: Western Midstream Partners - Western Midstream Partners currently yields 8.9%, operating a portfolio of energy midstream assets, including pipelines and processing plants [11]. - The majority of its assets generate stable cash flow through long-term, fixed-fee contracts, contributing to its dividend sustainability [11].