It can be hard to find good high-yield stocks when the S&P 500 is offering a tiny 1.1% yield. However, it is not impossible. Here's why dividend investors will love high-yielding Hormel Foods (NYSE: HRL) and even higher-yielding Enterprise Products Partners (NYSE: EPD). Hormel Foods is deeply out of favor Hormel's 4.7% dividend yield is near the highest level in the company's history. There's a good reason. The company hasn't been hitting on all cylinders for a few years. The impact of post-pandemic infl ...

Core Viewpoint - The energy sector, particularly midstream businesses, offers high-yield investment opportunities for income-focused investors in 2026, despite the overall volatility of oil and natural gas commodities [1]. Industry Overview - The energy industry is divided into upstream, midstream, and downstream segments, with upstream and downstream being inherently volatile due to commodity price fluctuations. In contrast, midstream businesses, which own energy infrastructure assets, are more stable as they primarily charge fees for asset usage [2][3]. Midstream Business Characteristics - Midstream companies connect upstream producers to downstream processors and charge fees based on the volume of energy transported rather than commodity prices, leading to more consistent revenue streams [3]. High-Yield Midstream Options - Three notable midstream companies with attractive dividend yields are Enbridge, Enterprise Products Partners, and Energy Transfer, each offering different risk and yield profiles [4]. Enbridge (ENB) - Current Price: $48.28, Market Cap: $105 billion, Dividend Yield: 5.58%, has diversified operations including oil and natural gas pipelines and clean energy, and has increased its dividend for 30 consecutive years [5][6]. Enterprise Products Partners (EPD) - Current Price: $33.10, Market Cap: $72 billion, Dividend Yield: 6.57%, operates solely in oil and natural gas midstream assets, and has a history of conservative management with 27 years of annual dividend increases [7][8]. Energy Transfer (ET) - Current Price: $18.16, Market Cap: $62 billion, Dividend Yield: 7.25%, has the highest yield among the three but previously cut its distribution in 2020 to strengthen its balance sheet, with plans for gradual distribution growth of 3% to 5% annually [9][10].

Core Viewpoint - The article suggests that 2026 could be dubbed the "Year of Making Reliable Passive Income," with an investment of $122,100 in three high-yield dividend stocks potentially generating $10,000 in passive income [1]. Group 1: Ares Capital - Ares Capital (ARCC) is highlighted as a strong investment option, with an investment of $40,700 expected to yield approximately $3,875 in dividend income in 2026, based on a forward dividend yield of slightly above 9.5% [3][4]. - Ares Capital is the largest publicly traded business development company (BDC), required to return at least 90% of its income to shareholders as dividends to maintain tax exemptions [4]. - The company has a strong track record, having either grown or maintained its dividend for 65 consecutive quarters, equating to 16 years [6]. Group 2: Energy Transfer LP - Energy Transfer LP (ET) is another recommended investment, with a potential passive income of $3,325 from a $40,700 investment, based on a distribution yield of nearly 8.2% [7]. - The company has consistently increased its distributions since Q3 2021 and targets annual distribution growth of 3% to 5% [8]. - Energy Transfer's financial position is reported as the strongest in its history, with a manageable debt load and a comfortable distribution coverage ratio [10]. Group 3: Pfizer - Investing $40,700 in Pfizer (PFE) could yield an additional $2,800 in passive income in 2026, based on a forward dividend yield of around 6.9% [12]. - Pfizer has a long history of dividend payments, having increased its dividend for 16 consecutive years and paid dividends for 345 consecutive quarters [12]. - Despite projected revenue stagnation and challenges such as a patent cliff and lower-than-expected COVID-19 product revenue, Pfizer is expected to maintain its dividend due to solid free cash flow and management's commitment to dividend growth [14][15].

Core Insights - Investing in dividend stocks is advantageous as they historically provide higher total returns compared to non-dividend payers, particularly those that consistently grow dividends [1] Group 1: Dividend Growth and Performance - Realty Income has a strong track record, having increased its monthly dividend payment 133 times since its public listing in 1994, with a current yield of 5.7% and a 4.2% compound annual growth rate [4] - Mid-America Apartment Communities has extended its dividend growth streak to 16 years, with a current yield of 4.5% and a 7% compound annual growth rate over the last decade [8] - Rexford Industrial Realty has achieved a 15% compound annual dividend growth rate over the past five years, showcasing its strong performance in the REIT sector [7] Group 2: Financial Strength and Investment Opportunities - Realty Income maintains a conservative dividend payout ratio of around 75% of its adjusted funds from operations, allowing for cash retention to invest in new properties [5] - The company has identified $97 billion in potential investment opportunities, with a long-term growth runway supported by $14 trillion of suitable real estate for net leases across the U.S. and Europe [6]

Company Overview - Trinity Capital currently manages $2.6 billion in assets and has a market capitalization of $1.15 billion, focusing on maintaining sound returns for investors through careful vetting of investment targets [1][2] - Since its inception in 2008, Trinity has invested approximately $5.1 billion across various sectors, including technology, life sciences, and asset-based lending [2] Financial Performance - In the most recent earnings report for Q3 2025, Trinity reported total investment income of $75.6 million, a year-over-year increase of over 22%, and net investment income (NII) of $37 million, translating to 52 cents per share, which was a 26% increase year-over-year [7] - The company declared a dividend of 51 cents per share on September 17, 2025, which annualizes to $2.04, yielding 13.5% [6][8] Dividend Strategy - Trinity has a history of consistent dividend payments since 2021, with no missed quarterly payments and a tendency to issue special or supplemental dividends when appropriate [6][8] - The current dividend coverage ratio is estimated at 103%, indicating strong support for ongoing dividend payments [8] Analyst Insights - Analysts view Trinity as a strong investment opportunity, with a consensus rating of Moderate Buy based on 6 reviews, including 5 Buys and 1 Sell, and a price target suggesting a potential upside of 16% over the next year [9] - The outlook for earnings growth and return on equity (ROE) remains positive, with projected NII growth of 1% year-over-year and an expected ROE of 15.5% in 2026 [8]

Core Viewpoint - With the Federal Reserve moving towards rate cuts, income-seeking investors are encouraged to explore dividend-paying stocks, particularly those with reliable payouts and high yields, as yields on fixed-income securities decline [1] Group 1: Investment Opportunities - The focus is on finding dividend stocks yielding at least 7% with positive analyst sentiment, with CTO Realty Growth (CTO) and Energy Transfer (ET) identified as strong candidates due to their solid payout history and high yield [2][3] - Both CTO and ET have dividend yields significantly above 7% and a consistent track record of returning cash to shareholders, supported by a "Strong Buy" consensus rating from Wall Street analysts, indicating financial stability and growth potential [3] Group 2: CTO Realty Growth (CTO) Overview - CTO Realty Growth is a real estate investment trust (REIT) that specializes in high-quality retail properties located in rapidly growing U.S. markets, focusing on multi-tenant shopping centers anchored by essential businesses to ensure steady foot traffic and resilient earnings [4] - The company has demonstrated strong leasing momentum, securing 482,000 square feet of total leasing activity for the year, including 424,000 square feet of comparable leases with a notable 21.7% rent spread [5] - As of the end of the third quarter, CTO's portfolio was 94.2% leased and 90.6% occupied, with ongoing negotiations for additional anchor tenants expected to enhance rental income and customer traffic [6]

Core Viewpoint - Diageo is considered significantly undervalued with a forward dividend yield of approximately 4.5%, making it an attractive investment opportunity for long-term gains [1][5][10] Company Overview - Diageo is the world's leading spirits company, owning iconic brands such as Johnnie Walker, Crown Royal, and Captain Morgan [3] - The company has over 200 brands generating $20 billion in annual revenue, showcasing its tremendous distribution capabilities and global scale [8] Financial Performance - Diageo's stock has fallen around 26% this year, reflecting broader industry trends of weakening demand [3] - Management expects adjusted (non-GAAP) net sales to remain flat or slightly decline for the year, while cost savings are anticipated to drive an increase in adjusted operating profit [7] - The company is projected to generate approximately $3 billion in full-year free cash flow, with an average of 85% of free cash flow allocated to dividends over the last three years, indicating a sustainable payout [7] Investment Potential - The stock is currently trading at a forward price-to-earnings multiple of 13.8, which is half of its valuation from two years ago, suggesting potential for significant appreciation if the stock is rerated [9] - Berkshire Hathaway's small $21 million stake in Diageo, held for nearly three years, reflects confidence in the company's long-term prospects [9] Dividend Information - Diageo has a consistent history of growing its bi-annual dividend payments over the last 25 years, although it does not increase its dividend every year [5] - The current forward dividend yield of approximately 4.5% is supported by the company's consistent free cash flow generation, making it an opportune time to invest [5][10]

Market Overview - Major US equity indices reached new highs, with the S&P 500 Index rising approximately 8% during the quarter, indicating strong corporate earnings and a positive market outlook [3] - Despite the market strength, there is significant uncertainty regarding inflation and interest rate trajectories, likened to a precarious balancing act [3] Interest Rates and Employment - The Federal Reserve cut its policy interest rate by 25 basis points to a range of 4.00%-4.25%, with projections indicating two more cuts by year-end, potentially bringing the rate to 3.6% [4] - The unemployment rate has increased to 4.3%, with job openings per unemployed person falling below 1x for the first time since April 2021, signaling a weakening labor market [5][6][8] Inflation Trends - Inflation remains above the Fed's target of 2%, with the Personal Consumption Expenditures Index (PCE) and Consumer Price Index (CPI-U) at 2.7% and 2.9% respectively as of August [11][14] - The Fed's inflation expectations project a gradual return to target levels, with anticipated rates of 2.6% in 2026 and 2.0% in 2028 and beyond [19] Investment Strategies - High-yield dividend stocks have historically performed well in low-growth, high-inflation, stagflation, and steepening yield curve environments, averaging a ~15% annual growth rate during low GDP growth periods [17][21][24][28] - The current economic environment is characterized by multiple uncertainties, including executive orders, tariffs, and AI proliferation, leading to a cautious investment approach [13] Sector Performance - Financial holdings in the Income-Equity portfolio saw significant dividend increases, with 70% of financials raising dividends by an average of 14% [31] - The portfolio outperformed its benchmark, the Russell 1000 Value Index, yielding 3.6% with projected dividend growth of 5.0% for 2025 [33] AI and Technology Investments - The "Magnificent 7" tech companies have significantly increased capital expenditures, with expectations to reach nearly half a trillion dollars by 2027, raising concerns about free cash flow sustainability [36][38] - The current AI investment frenzy is reminiscent of the late 1990s dot-com bubble, with companies like Oracle planning to triple capital spending despite high net debt levels [37][39] Infrastructure and Energy Outlook - The infrastructure portfolio has shown positive performance, driven by AI-related investments and the need for increased electricity demand due to data centers [55][66] - The energy sector is experiencing a rebound, particularly in refiners and Canadian producers, while US natural gas prices have declined due to various market factors [71][72] Dividend Increases and Portfolio Adjustments - The Income-Equity portfolio recorded multiple dividend increases, with notable contributions from financials and healthcare sectors [47] - New positions were initiated in energy and REIT sectors, while positions in TotalEnergies and Conagra Brands were exited due to concerns over dividend coverage and management effectiveness [48]

Core Insights - Jamie Dimon is recognized as one of the highest-profile bankers globally [1] Group 1 - Jamie Dimon holds a significant position in the banking industry, indicating his influence and reputation [1]

Group 1 - The article emphasizes the importance of diversifying investment strategies beyond AI-focused opportunities, suggesting a broader market perspective [1] - It highlights the availability of in-depth research on various investment vehicles such as REITs, mREITs, preferreds, BDCs, MLPs, and ETFs, indicating a comprehensive approach to income alternatives [1] - The article mentions a positive reception with 438 testimonials, most rated 5 stars, reflecting strong user satisfaction with the research services offered [1] Group 2 - The article does not provide specific financial data or performance metrics related to companies or industries [2] - There are no detailed insights or analyses regarding particular companies or market trends presented in the content [2]