Is It Time to Load Up on These 3 Ultra-High-Yielding Dividend Stocks? (1 Yields 11%!

Core Viewpoint - The average dividend yield is low, with the S&P 500 at approximately 1.2%, but there are companies offering attractive yields for income-seeking investors [1] Group 1: Ares Capital - Ares Capital (ARCC) has a dividend yield of 10.7% and has maintained stable or growing dividends for over 16 years [2][3] - It is the largest publicly traded business development company (BDC) with a $29.5 billion investment portfolio across 600 companies, primarily investing in senior secured loans [3] - Ares Capital has strong liquidity and generates earnings exceeding its dividend, providing a solid foundation for its payout [5] Group 2: Energy Transfer - Energy Transfer (ET) has a distribution yield of 6.9% and has increased its payout every quarter since the end of 2021, aiming for a 3% to 5% annual increase [6][9] - The company generates substantial stable cash flow, with fee-based sources accounting for 90% of its annual earnings, covering its distribution comfortably by 1.8 times last year [8] - Energy Transfer plans to invest at least $5 billion into growth capital projects this year, supporting its high-yielding payout [9] Group 3: Starwood Property Trust - Starwood Property Trust (STWD) offers the highest yield at 11% and has paid a stable dividend for over a decade [10][11] - The REIT has diversified its investments beyond commercial mortgages to include residential and infrastructure loans, enhancing income stability [12] - Starwood expects its diversified portfolio to boost earnings and support dividend payments, with its stock price down over 15% from its 52-week high [13] Group 4: Investment Summary - Ares Capital, Energy Transfer, and Starwood Property Trust provide ultra-high-yielding income streams with solid records of stable to growing dividends, making them attractive income stocks to consider [14]