Dividend stocks are a favorite among investors for good reason. They provide a steady income stream of passive income and offer a promising avenue for total return. Total return, a comprehensive measure of investment performance, encompasses interest, capital gains, dividends, and distributions realized over time.

According to the Internal Revenue Service (IRS), passive income generally includes earnings from rental activity or any trade, business, or investment in which the individual does not materially participate. It can also include income from limited partnerships, stocks, bonds, and other similar enterprises in which the investor is not actively involved.

2024 is coming to a close, and 2025 is approaching. So, now is the time to match capital gains with losses and prepare for a new administration that promises to be much more business-friendly and continue with the tax cuts that are so important to small businesses. One thing is sure: quality ultra-high-yield dividend stocks will remain in favor next year. While the interest rate cuts may pause until the spring as the Federal Reserve intends to keep a lid on inflation, investors will continue to flock to the dividend stocks offered by well-capitalized companies.

We screened our 24/7 Wall St. ultra-high-yield dividend stock database, searching for companies the top analysts across Wall Street held in high regard. The five we found have Buy, Outperform, or Overweight ratings. And they should continue to pay investors the big dividends that keep them in high demand.

Why do we cover ultra-high-yield stocks?

These stocks are only suited for some. Yet, those trying to build strong passive income streams can do extremely well having some of these top stocks in their portfolios. Paired with more conservative blue-chip dividend giants, investors can use a barbell approach to get passive income streams that can make a significant difference.

AGNC Investment

This company has paid solid monthly dividends for years; its current yield is 14.75%. 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 U.S. government-sponsored enterprise or agency guarantees the principal and interest payments.

AGNC 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.

Wells Fargo has an Overweight rating on the company to go with a $12 target price objective

Arbor Realty Trust

This dividend stock trades at a ridiculous 9.5 times estimated 2025 earnings and has a massive 11.62% yield. Arbor Realty Trust (NYSE: ABR) invests in a diversified portfolio of structured finance assets in the multifamily, single-family rental, and commercial real estate markets in the United States.

The company operates in two segments:

• Structured Business
• Agency Business

Arbor Realty Trust primarily invests in:

• Bridge and mezzanine loans, including junior participating interests in first mortgages
• Preferred and direct equity and real estate-related joint ventures
• Real estate-related notes
• Various mortgage-related securities

The company offers:

• Bridge financing products to borrowers who seek short-term capital to be used in the acquisition of property
• Financing by making preferred equity investments in entities that directly or indirectly own real property
• Mezzanine financing in the form of loans that are subordinate to a conventional first mortgage loan and senior to the borrower’s equity in a transaction
• Junior participation financing in the form of a junior participating interest in the senior debt
• Financing products to borrowers seeking conventional, workforce, and affordable single-family housing.

Further, it underwrites, originates, sells, and services multifamily mortgage loans through conduit/commercial mortgage-backed securities programs.

JMP Securities has a Market Outperform rating with a $16.50 price target.

Frontline

While off the radar of most investors, this shipping company could explode higher and comes with a massive 13.72% dividend. Frontline PLC (NYSE: FRO) engages in the seaborne transportation of crude oil and oil products worldwide. It owns and operates oil and product tankers.

Frontline has expanded its fleet by acquiring 24 very large crude carriers (VLCCs) and trimmed its fleet by selling older vessels. This resulted in significant gains and net cash proceeds in 2024. The company also secured time charter contracts for a VLCC and a Suezmax tanker, boosting its revenue outlook.

The company has a modern fleet with an average age of six years, consisting of 99% eco vessels, enhancing operational efficiency. VLCC is a classification of large tanker ships specially designed to transport crude oil. They are an integral part of the global maritime logistics system that moves large quantities of unrefined crude oil from extraction locations to refineries worldwide.

Following transactions completed in 2024 and the completion of the delivery of all 24 VLCCs acquired from Euronav, Frontline’s fleet will consist of 84 vessels. These include:

• 41 VLCCs
• 22 Suezmax tankers
• 18 LR2/Aframax tankers

Jefferies has a Buy rating and a huge $26 price target on this dividend stock.

Mach Natural Resources

This 2023 IPO is trading well below the initial offering price. Mach Natural Resources L.P. (NYSE: MNR) recently conducted a secondary offering to purchase more producing assets, and at current pricing, it will pay an estimated 15.5% dividend.

Mach Natural Resources is an independent upstream oil and gas company focused on acquiring, developing, and producing oil, natural gas, and natural gas liquids reserves in the Anadarko Basin region of western Oklahoma, southern Kansas, and the Texas panhandle.

Mach is led by Tom Ward, co-founder of Chesapeake Energy, and is another entrant to 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 exploration and production companies organized as a limited partnership as it is an oil and gas producer.

Raymond James has a Buy rating on the dividend stock and a hefty $22 price target.

TXO Partners

With a massive 13.45% dividend and trading not far from a 52-week low, this dividend stock is a bargain at current levels. TXO Partners L.P. (NYSE: TXO) is an oil and natural gas company. Its focus is on acquiring, developing, optimizing, and exploiting North America’s conventional oil, natural gas, and natural gas liquid reserves.

Its acreage positions are concentrated in the Permian Basin of West Texas and New Mexico and the San Juan Basin of New Mexico and Colorado.

Last summer, Bob Simpson, the company’s board chair and chief executive, made a statement by purchasing 100,000 company shares. Trading at a ridiculously cheap 9.5 times estimated 2025 earnings, the stock is a passive income winner. In fact, it is a potential total return grand slam.

Raymond James has a Strong Buy rating on the shares with a huge $26 price objective.

Five of Wall Street’s Favorite Ultra-High-Yield Dividend Stocks Are Top Picks for 2025

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