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Seriously? We Found 5 Incredible Ultra-High-Yield Stocks Yielding 14% and More
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24/7 Wall St. Insights
- Ultra-high-yield stocks could be in significant demand as interest rates drop over the next two years.
- Wall Street expects the first rate cut will be next month.
- Dividend lovers have to grab this incredible free report: Access 2 legendary, high-yield dividend stocks Wall Street loves.
Investors love dividend stocks, especially the ultra-high-yield variety, because they offer a significant income stream and have massive total return potential. Total return includes interest, capital gains, dividends, and distributions realized over time. In other words, the total return on an investment or a portfolio consists of income and stock appreciation.
Let’s take a closer look at the concept of total return. Imagine you purchase a stock at $20 that offers a 3% dividend. If the stock price rises to $22 within a year, your total return is 13%. This is calculated by adding the 10% increase in stock price to the 3% dividend.
With the beginning of a long-awaited interest rate-cutting cycle approaching, we decided to screen our 24/7 Wall St. ultra-high-yield dividend research universe for companies paying 14% and higher payouts to shareholders. We then screened those companies for balance sheet strength and their ability to maintain and even increase those massive dividends.
Five dividend stocks stood out, making sense for growth and income investors with a higher risk tolerance. All are rated Buy at top Wall Street firms, and each one offers investors excellent entry points. Investors who like these five stocks yielding 14% and more will love this brand-new report.
Why Do We Cover Ultra-High-Yield Stocks?
While only suited for some, those trying to build passive solid income streams can do exceptionally well having some of these top companies in their portfolios. Paired with more conservative blue-chip dividend giants, investors can use a barbell approach to get passive income streams that make a significant difference.
AGNC Investment
This company has paid solid monthly dividends for years; its current yield is 14.34%. AGNC Investment Corp. (NASDAQ: AGNC) is a real estate investment trust (REIT) in the United States.
The company invests in residential mortgage pass-through securities and collateralized mortgage obligations for which a United States government-sponsored enterprise or agency guarantees the principal and interest payments.
The company funds its investments primarily through collateralized borrowings structured as repurchase agreements. It has elected to be taxed as a REIT under the Internal Revenue Code 1986. However, it would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders.
FS KKR
This is a well-known name on Wall Street, offers a solid entry point at current levels, and pays a staggering 14.43 dividend. FS KKR Capital Corp. (NASDAQ: FSK) is a business development company specializing in investments in debt securities. It seeks to purchase interests in loans through secondary market transactions or directly from the target companies as primary market investments.
The company also seeks to invest in:
- First-lien senior secured loans
- Second-lien secured loans
- Subordinated loans
- Mezzanine loans
The firm also receives equity interests in connection with debt investments, such as warrants or options for additional consideration. It also seeks to purchase minority interests in common or preferred equity in our target companies, either in conjunction with one of the debt investments or through a co-investment with a financial sponsor.
The fund may invest in corporate bonds and similar debt securities opportunistically.
The fund does not seek to invest in start-ups, turnaround situations, or companies with speculative business plans. It aims to invest in small and middle-market companies in the United States.
FS KKR seeks to invest in firms with annual revenue between $10 million to $2.5 billion. It aims to exit from securities by selling them in a privately negotiated over-the-counter market.
Mach Natural Resources
This 2023 IPO is trading just above the initial offering price of $19 price and will pay a gigantic 15.30% dividend. Mach Natural Resources L.P. (NYSE: MNR) is an independent upstream oil and gas company focused on the acquisition, development, and production of oil, natural gas, and natural gas liquids reserves in the Anadarko Basin region of Western Oklahoma, southern Kansas, and the Texas panhandle.
Top Wall Street energy analysts have noted that Tom Ward leads Mach. He is the well-respected co-founder of Chesapeake Energy.
Mach Natural Resources is the newest entrant into the E&P MLP space. It is a pure-play operator in the Anadarko Basin, leveraging its strong position (1 million net acres) to become the primary consolidator in the region.
Mach’s midstream position and lower base decline (~20%) allow the company to target a lower reinvestment rate (~30%) relative to the overall industry. In addition, it is one of the only companies organized as a limited partnerships that is an oil and gas producer.
NextEra Energy Partners
This outstanding idea now offers investors a massive 14.10% dividend and years of solid performance. NextEra Energy Partners L.P. (NYSE: NEP )acquires, owns, and manages contracted clean energy projects in the United States. It owns a portfolio of contracted renewable generation assets, including wind, solar, and battery storage projects.
The company owns contracted natural gas pipeline assets. It is considered one of the world’s largest renewable energy generators from wind and sun and a world leader in battery storage.
Headquartered in Juno Beach, Florida, NextEra Energy Partners owns, or has a partial ownership interest in, a portfolio of contracted renewable energy assets consisting of wind, solar, and solar-plus-storage projects and a stand-alone battery storage project in the U.S., as well as contracted natural gas pipeline assets in Pennsylvania.
Vale
This excellent commodity play pays investors a stellar 17.38% dividend. Vale S.A. (NYSE: VALE) and its subsidiaries produce and sell iron ore and pellets as raw materials in steelmaking in Brazil and internationally.
The company operates through two segments:
- Iron Solutions
- Energy Transition Materials
The Iron Solutions segment produces and extracts iron ore, pellets, manganese, and other ferrous products and provides related logistic services.
The Energy Transition Materials segment produces and extracts nickel, which is used to produce stainless steel, electric vehicles, and metal alloys, and its by-products, such as:
- Gold
- Silver
- Cobalt
- Precious metals
- Platinum
It also produces and extracts copper used in construction to make pipes and electrical wires.
Five Dividend Stocks Yielding 8% and More Are Passive Income Champions
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