Investing in the stock market is all about making money. While price appreciation is likely the first way most people think about making money in the market, there’s more than one way to do that. 

Another popular way to generate a profit in the stock market is to invest in dividend stocks. These are stocks that share a percentage of the profits they generate with their investors through dividends. 

But not all dividend stocks are equal. Some offer higher dividends than others relative to their stock prices — a statistic that’s known as the dividend yield. Some dividend stocks, those that pay significantly more than others, are known as ultra-yield stocks. 

So, what makes some stocks ultra-yield opportunities? These stocks pay at least four times the current S&P 500 dividend yield. That yield currently stands at 1.32%. Below, we’ll outline what we believe to be some of the strongest ultra-yield dividend stock plays on the market today. 

Key Points:

• Ultra-yield dividend stocks can offer meaningful passive income. 
• NLY, BSXL, BWLP, and KEN all offer significant dividends.
• Are you looking for penny stocks to buy low and make passive income? Check out our Dividend Legends report to learn about two dividend stocks you should buy and hold forever. 

Annaly Capital Management Offers a 13% Dividend Yield

Annaly Capital Management (NYSE: NLY) is a real estate investment trust (REIT). This means the company makes investments in the real estate industry and shares the profits it generates from those investments with its shareholders. In particular, the company focuses on mortgage-based assets like mortgage-backed securities and mortgage servicing rights. It also makes other residential real estate investments. 

As one of the largest mortgage REITs on the market, Annaly Capital Management offers a meaningful, yet stable dividend. The current quarterly dividend is $0.65, representing a 13% dividend yield. That’s nearly ten times higher than the current S&P 500 dividend yield. 

It’s also worth mentioning that big dividend yields can be a sign of something going wrong. It’s typically a good idea to look at the company’s recent performance as an indicator of whether high yields are a sign of strength or a sign of weakness. In the case of Annaly Capital Management, they seem to be a sign of strength. The stock stays relatively flat but has grown over 3% in the past year. 

Blackstone Secured Lending Fund Offers a 10%+ Dividend Yield

The Blackstone Secured Lending Fund (NYSE: BXSL) is another stock that earns its money in the lending industry. But unlike Annaly Capital Management, the company isn’t focused on consumer lending products like mortgages. Instead, the majority of the investments this fund makes are in first-lien senior secured debt of private companies in the United States. 

As first-lien investments, the fund is the first to be paid if something goes wrong with the companies they invest in.

At the moment, the Blackstone Secured Lending Fund offers a $0.77 quarterly dividend. At that rate, the stock’s current dividend yield is 10.22%, nearly eight times the S&P 500’s current dividend yield. 

So, how has the stock performed lately? It has climbed over 10% in the past year, making it an impressive dividend play to watch.  

BW LPG Offers a 25%+ Dividend Yield

BW LPG (OB: BWLPG) is focused on the transportation of liquefied petroleum gas (LPG). That transportation is done by way of vessels, and BWLPG owns the world’s largest fleet of LPG vessels. If you added all of the carrying capacity of all of its vessels together, you would end up with a total carrying capacity of 3 million cubic meters of LPG. And while BW LPG is centered around the transportation of LPG, that’s not all it does. It also generates revenue through management, wholesale, and trade services.

BW LPG also offers an impressive dividend. The company currently pays an annual dividend of $3.51. That works out to a 25.39% dividend yield, which is over 19 times the current S&P 500 dividend yield.  

BW LPG stock has been a solid performer in the stock market as of late, too. The company’s share price has grown 40.46% over the past year.

Kenon Holdings Offers a 15%+ Dividend Yield

Kenon Holdings (TASE: KEN) is a holding company in Singapore that owns assets across the power generation, shipping, and automotive industries. The company’s primary investment is in OPC Energy, an Israeli company that develops, operates, and manages power plants. Kenon Holdings is also involved in the development of clean energy power plants that operate solar, wind, and other renewable power farms. 

At the moment, Kenon Holdings offers a $0.95 quarterly dividend. That works out to a 15.57% dividend yield. With a dividend yield that’s nearly 12 times that of the S&P 500, this is a stock that can generate meaningful income. 

And the strong dividend makes up for a relatively choppy stock performance. While Kenon Holdings shares are up more than 17% over the past five years, they’re down just over 1% on a year-over-year basis. 

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