Ultra-high-yield dividend stocks are a favorite among investors for good reason. They provide a steady stream of passive income and offer a promising avenue for total return. Total return, is a comprehensive measure of investment performance that encompasses interest, capital gains, dividends, and distributions realized over time. Let’s examine the concept of total return. If you purchase a stock at $20 that pays a 3% dividend ($0.60 per share) and the price rises to $22 in a year, your total return is ($22 + $0.60 – $20) / $20 = 13%. This combines the price appreciation and the dividend received.
24/7 Wall St. Key Points:
- Recently, the stock market printed new all-time highs, completing a massive rally off the April lows
- While the bullish sentiment over AI is everywhere now, caution is warranted
- Ultra-high-yield stocks will do well when the Federal Reserve finally lowers rates
- Are passive income stocks a good idea for you? Why not meet with a financial advisor near you for a complete portfolio review? Click here to get started finding one today. (Sponsored)
There are over 12,000 publicly traded stocks in the United States; not even the most intelligent investors with the best tools can find them all immediately. Many investors and traders typically maintain a small list of key stocks they follow when seeking capital gains or high-yield dividends. We decided to screen our 24/7 Wall St. high-yield database, looking for solid companies yielding at least 6% with solid dividend coverage. Five well-run companies hit our screens, and all look like timely buys now.
Why do we cover Ultra-High-Yield stocks?
While not suited for everybody, those trying to build strong passive income streams can do exceptionally well with some of these top companies in their portfolios. Paired with more conservative blue-chip dividend giants, investors can employ a barbell approach to generate substantial passive income streams.
BP
BP p.l.c. is one of the oil and gas “supermajors” and one of the world’s largest companies, as measured by revenues and profit. Rumours have been circulating all over Wall Street and the world that Shell is looking to acquire the company. If so, it would be the largest energy deal since ExxonMobil’s acquisition of Mobil in the 1990s. BP p.l.c. (NYSE: BP | BP Price Prediction) engages in the energy business worldwide.
It operates through four segments:
- Gas & Low Carbon Energy
- Oil Production & Operations
- Customers & Products
- Rosneft
BP produces and trades natural gas, offers biofuels, operates onshore and offshore wind and solar power generating facilities, and provides decarbonization solutions and services, such as hydrogen and carbon capture, usage, and storage.
The company is also involved in the convenience and mobility business, which manages the sale of fuels to:
- Wholesale and retail customers
- Convenience products
- Aviation fuels
- Castrol lubricants
- Refining, Supply, and trading of oil products
- Operation of electric vehicle charging facilities
In addition, it produces and refines oil and gas, and invests in upstream, downstream, and alternative energy companies, as well as advanced mobility, bio, and low-carbon products, carbon management, digital transformation, and power and storage areas.
British American Tobacco
This British multinational company manufactures and sells cigarettes and other tobacco and nicotine products. European giant British American Tobacco PLC (NYSE: BTI) is a consumer-centric, multi-category consumer goods company that pays shareholders a huge, dependable dividend.
The company provides tobacco and nicotine products. Its segments include:
- United States
- Asia Pacific
- Middle East
- Africa
- The Americas
- Europe
The company’s product categories include:
- Vapor
- Tobacco Heating Products (THPs)
- Modern Oral, Traditional Oral, and Combustible cigarettes
Vapor products are handheld, battery-powered devices that heat a liquid (called an e-liquid) to produce an inhalable aerosol known as vapor. THPs are a new category of tobacco product designed to heat rather than burn tobacco.
Modern Oral products are smoke-free oral nicotine products, also known as nicotine pouches, designed for use in the mouth. Traditional oral products include snus and snuff.
British American Tobacco brands include:
- Vuse
- glo
- Velo
- Grizzly
- Dunhill
- Kent
- Lucky Strike
- Pall Mall
- Rothmans
- Newport
- Natural American Spirit
- Camel
- Vogue
- Viceroy
- Kool
- Peter Stuyvesant
- Craven A
- State Express 555
- Shuang Xi
Edison International
Trading near a 52-week low with one of the highest dividends in the utility sector, this is a strong idea for the rest of 2025. Edison International Inc. (NYSE: EIX) is an electric utility holding company focused on providing clean and reliable energy and energy services through its independent companies. It is the parent holding company of Southern California Edison Company (SCE) and Trio.
SCE is a public utility primarily engaged in the business of supplying and delivering electricity to an approximately 50,000 square mile area across Southern, Central, and Coastal California.
Trio is a global energy advisory firm providing integrated sustainability and energy advisory services to large commercial, industrial, and institutional organizations in North America and Europe.
Trio provides integrated strategy and implementation solutions in:
- Sustainability
- Renewables
- Energy procurement
- Conventional supply
- Energy optimization
- Transportation electrification
Main Street Capital
Main Street Capital has helped over 200 private companies grow or transition by providing flexible private equity and debt capital solutions. This company is a favorite across Wall Street and offers a substantial dividend. Main Street Capital Corporation (NASDAQ: MAIN) is a private equity firm that provides equity capital to lower-middle market companies.
The firm also provides debt capital to middle-market companies for:
- Acquisitions
- Management buyouts
- Growth financings
- Recapitalizations
- Refinancing
The firm seeks to partner with entrepreneurs, business owners, and management teams, and generally provides “one-stop” financing alternatives within its lower middle-market portfolio.
Main Street Capital typically invests in lower-middle-market companies with annual revenues between $10 million and $150 million.
The firm’s middle market debt investments are in businesses that are generally larger than its lower middle market portfolio companies. It also creates majority and minority equity.
United Parcel Service
The delivery giant announced that it is cutting its shipping volume for Amazon.com (NASDAQ: AMZN) by more than 50% by the second half of 2026. The company said the move is part of a broader strategy by UPS to focus on more profitable and less risky business segments. UnitedThe Parcel Service, Inc. (NYSE: UPS) provides a range of integrated logistics solutions for customers in more than 200 countries and territories.
Its segments include:
- U.S. Domestic Package
- International Package.
U.S. Domestic Package segment offers a range of United States domestic air and ground package transportation services. Its air portfolio offers time-definite, same-day, next-day, two-day, and three-day delivery alternatives as well as air cargo services.
UPS ground network enables customers to ship using its day-definite ground service. UPS SurePost provides residential ground service for customers with non-urgent, lightweight residential shipments.
The International Package segment comprises its small package operations in Europe, the Indian subcontinent, the Middle East and Africa, Canada, Latin America, and Asia. It offers a selection of guaranteed day- and time-definite international shipping services. Its supply chain solutions encompass forwarding, logistics, and other related businesses.
Bank of America has a Buy rating with a $115 target price objective.
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