Track market-moving stories before they get noisy

Where you park a high-yield dividend portfolio matters as much as what you put in it, and the difference between the right account and the wrong one can quietly compound into a six-figure gap over two decades.

At the 24% bracket, a $900,000 high-yield portfolio paying $59,925 in annual dividends sends $12,767 to the IRS every year. Inside a Roth IRA, a qualified distribution “shall not be includible in gross income” once you reach age 59½ and clear the five-year rule.

Six Income Stocks Split Into Two Tax Outcomes The model divides $900,000 equally into six $150,000 positions, making a blended yield of 6.66%. In a taxable account, your bill depends on what kind of dividend each stock pays. REITs and BDCs pass through rent and loan income, and most of it is taxed as ordinary income at your full bracket. Altria (NYSE:MO | MO Price Prediction) and Verizon (NYSE:VZ) pay qualified dividends from domestic corporations (26 U.S.C. § 1(h)(11)), which are taxed at capital gains rates. For most filers in the 24% bracket, that rate is 15%.

Realty Income (NYSE:O): 5.74% yield, $8,610 a year. It pays monthly, has raised its dividend for 115 consecutive quarters, and counts every payment as ordinary income in a taxable account. Omega Healthcare Investors (NYSE:OHI): 6.05% yield, $9,075 a year. The skilled nursing REIT raised its quarterly payout to $0.68, and its full payout is exposed to your bracket rate. Main Street Capital (NYSE:MAIN): 5.8% yield, $8,700 a year. Its 20th consecutive quarterly supplemental dividend of $0.30 per share adds more ordinary income on top of the regular monthly payout. Ares Capital (NASDAQ:ARCC): 10.4% yield, $15,600 a year. This BDC position costs $3,744 in federal tax at 24%, making it the best Roth candidate in the group. Altria: 5.68% yield, $8,520 a year. Its dividends are qualified, so the tax drag is lower, but the new $1.11 quarterly payout still compounds faster when no tax comes out. Verizon: 6.28% yield, $9,420 a year. Its dividends are also qualified, with a $0.7075 quarterly payout. 24% Bracket Roth IRA Taxable Account Gross income $59,925 $59,925 Tax on REIT/BDC income $0 $10,076 Tax on qualified dividends $0 $2,691 Net spendable income $59,925 $47,158 The Roth comes out ahead by $12,767 a year. With no growth and no reinvestment, that adds up to $127,674 over 10 years.

Higher Brackets Widen Every Gap Bracket Taxable Net Income Annual Roth Advantage 22% $47,997 $11,928 24% $47,158 $12,767 32% $43,799 $16,126 37% $40,803 $19,122 The 37% row taxes qualified dividends at the top 20% rate. These figures leave out state income tax. Realty Income and Omega payouts may also qualify for the Section 199A deduction, which lowers the taxable-account bill on those two REITs. For 2025 income, the 24% bracket applied to joint filers with taxable income from $206,701 to $394,600.

Compounding Turns the Annual Gap Into Six Figures Reinvest the $12,767 annual difference at a conservative 4%, and the Roth’s lead grows to $153,287 after 10 years and $380,189 after 20. With no compounding at all, the 20-year figure would be $255,348. These numbers assume no stock price gains. They come only from the taxes saved and the income those savings earn. Think of the result as the long-run cost of holding these six stocks outside a Roth.

Three Moves Before Your Next Tax Filing Pull your 1099-DIV and add up the ordinary dividends from any REIT or BDC you own in a taxable account. Multiply that total by your marginal tax rate to estimate your annual cost. If you are considering a Roth conversion, model it using the specific yields above. Compare the one-time tax on converting with the annual tax savings of $11,928 to $19,122 before deciding the upfront cost is too high. The low-tax years between your last paycheck and your first RMD are often when conversions cost the least, a window we sized up in a free Roth guide here. If you convert in stages, compare the annual tax savings on ordinary-income payers such as Ares Capital and Main Street with the lower savings on qualified payers like Altria and Verizon. Contact [email protected] for any questions or corrections.

Ares Capital (ARCC - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.

Over the past month, shares of this private equity firm have returned -1.8%, compared to the Zacks S&P 500 composite's -1.2% change. During this period, the Zacks Financial - SBIC & Commercial Industry industry, which Ares Capital falls in, has lost 5.4%. The key question now is: What could be the stock's future direction?

Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.

Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.

We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

Ares Capital is expected to post earnings of $0.48 per share for the current quarter, representing a year-over-year change of -4%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.

For the current fiscal year, the consensus earnings estimate of $1.91 points to a change of -5% from the prior year. Over the last 30 days, this estimate has remained unchanged.

For the next fiscal year, the consensus earnings estimate of $1.94 indicates a change of +2% from what Ares Capital is expected to report a year ago. Over the past month, the estimate has remained unchanged.

With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Ares Capital.

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Projected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.

In the case of Ares Capital, the consensus sales estimate of $780.31 million for the current quarter points to a year-over-year change of -0.2%. The $3.1 billion and $3.19 billion estimates for the current and next fiscal years indicate changes of +1.7% and +2.6%, respectively.

Last Reported Results and Surprise HistoryAres Capital reported revenues of $768 million in the last reported quarter, representing a year-over-year change of +3.1%. EPS of $0.47 for the same period compares with $0.5 a year ago.

Compared to the Zacks Consensus Estimate of $768.98 million, the reported revenues represent a surprise of -0.13%. The EPS surprise was 0%.

Over the last four quarters, Ares Capital surpassed consensus EPS estimates times. The company topped consensus revenue estimates just once over this period.

ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.

While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.

The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Ares Capital is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Ares Capital. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.

Wall Street analysts expect Ares Capital (ARCC - Free Report) to post quarterly earnings of $0.48 per share in its upcoming report, which indicates a year-over-year decline of 4%. Revenues are expected to be $780.31 million, down 0.2% from the year-ago quarter.

The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.

Before a company announces its earnings, it is essential to take into account any changes made to earnings estimates. This is a valuable factor in predicting the potential reactions of investors toward the stock. Empirical research has consistently shown a strong correlation between trends in earnings estimate revisions and the short-term price performance of a stock.

While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.

Bearing this in mind, let's now explore the average estimates of specific Ares Capital metrics that are commonly monitored and projected by Wall Street analysts.

The collective assessment of analysts points to an estimated 'Dividend income' of $154.67 million. Compared to the current estimate, the company reported $141.00 million in the same quarter of the previous year.

The average prediction of analysts places 'Other Income' at $19.28 million. Compared to the current estimate, the company reported $32.00 million in the same quarter of the previous year.

Based on the collective assessment of analysts, 'Capital Structuring Service Fees' should arrive at $43.26 million. Compared to the present estimate, the company reported $48.00 million in the same quarter last year.

According to the collective judgment of analysts, 'Interest Income from Investments' should come in at $554.49 million. The estimate compares to the year-ago value of $561.00 million.

View all Key Company Metrics for Ares Capital here>>> Over the past month, Ares Capital shares have recorded returns of -3.9% versus the Zacks S&P 500 composite's no change. Based on its Zacks Rank #3 (Hold), ARCC will likely exhibit a performance that aligns with the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

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The portfolio size a 59-year-old needs for $7,600 a month swings by more than $1.6 million depending on one decision, and choosing the wrong tier can leave your income frozen while your costs keep climbing for three decades.

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At 59, you need $91,200 a year in investment income to collect $7,600 a month. Work backward from that income, and the portfolio size comes out of one equation: capital required equals income divided by yield. The yield you choose determines how big the portfolio must be and how long the income keeps up with your bills.

To put that in perspective, the typical American says their retirement “magic number” is $1.26 million, while Gen X savers figure they will need closer to $1.57 million. Even at $7,600 a month, reaching either number can take longer than you think.

Conservative Tier (3% to 4%): About $2.6 Million
With the conservative tier, you can divide $91,200 by 0.035, which equals roughly $2,605,700. This tier holds dividend growth funds and broad high-dividend equity. The Schwab US Dividend Equity ETF (NYSEARCA:SCHD) pays a forward yield near 3.1%, and its adjusted price rose 252% over 10 years. A core iShares high-dividend fund charges just 0.08% a year.

The tradeoff: you need more money up front, but in return, the principal tends to grow, and the payouts tend to rise over time.

Moderate Tier (5% to 7%): About $1.5 Million
A more moderate investment lets you take $91,200 and divide it by 0.06, which equals $1,520,000. REITs, covered call funds and preferred shares live here. Realty Income (NYSE:O) yields about 5.6%, pays monthly, and has logged its 115th consecutive quarterly increase. The JPMorgan Equity Premium Income ETF (NYSEARCA:JEPI) yields about 7.1% at its current payout rate, but its monthly checks swung from $0.45 to $0.34 per share this year.

The iShares Preferred and Income Securities ETF (NASDAQ:PFF) yields about 5.7% trailing, but its adjusted price slipped 1% over five years. That gives you income with almost no growth.

Aggressive Tier (8% to 14%): About $912,000
Finally, with an aggressive investment, you can take $91,200 and divide it by 0.10 to get $912,000. Business development companies (BDCs, which lend to private midsize businesses) lead this tier. Ares Capital (NASDAQ:ARCC | ARCC Price Prediction) yields about 10.3% and has held its quarterly dividend at $0.48 since 2023. Flat means no raise while prices climb, and its record also shows past payout cuts.

Measure this tier against the 10-year Treasury at 5.2%. At that rate, $91,200 takes about $1,770,900 with no credit risk. Every point of yield above that adds risk to the payout or the principal.

Why the Smallest Yield Can Pay the Most
A $912,000 portfolio at 10% pays $91,200 today and roughly the same amount at 68, while your costs keep rising. Compare that to a $2.6 million portfolio at 3.5%. If its dividends grow 8% a year, the income reaches about $182,300 by year nine, double the starting payout. The bigger portfolio costs more to build, but its income keeps pace with a 30-year retirement.

One Six-Fund Mix That Lands Near 6%
One example mix puts 20% each in SCHD and JEPI and 15% each in Realty Income, Ares Capital, PFF, and the iShares high-dividend fund. The blend yields about 6%. That’s $1,520,000 total: $304,000 in each 20% fund and $228,000 in each 15% holding. The mix trades some of the moderate tier’s growth for income you can collect from the first month.

Run your own balance against a different withdrawal rate here:

Three Moves to Make Before Your First Withdrawal

Plan for the age 59½ deadline. Traditional IRA withdrawals taken before age 59½ face an additional 10% tax. Cover the gap with taxable accounts, or use the exception for workers who leave a job in or after the year they turn 55.
Put each holding in the right account. REIT, BDC, and covered call payouts are mostly taxed as ordinary income, so these work best inside IRAs. Qualified dividends from funds like SCHD get lower rates in a taxable account. Run the numbers for your own tax bracket before you move money.
Check 10-year total returns before chasing yield. SCHD’s 252% adjusted gain versus PFF’s 29% shows how much growth a high-yield fund can sacrifice over a decade.

Contact [email protected] for any questions or corrections.

Rolling a $905,000 401(k) into steady retirement income sounds straightforward until you realize that playing it too safe leaves you short and chasing yield courts disaster. The answer lives in an unlikely combination of three assets, each pulling a completely different weight.

Ares Capital (ARCC +0.54%) typically trades at a premium to its book value. However, the largest publicly traded business development company (BDC) currently trades at around $18.50 per share, while its book value as of June 30, 2026, stands at $19.35 per share, implying a 4.3% discount to net asset value (NAV).

Next week, this BDC reports earnings. I would wait for that report, but if two key metrics prove satisfactory, consider it a strong opportunity for income-focused investors, particularly those on the hunt for high-yield dividend stocks, given its 10.4% forward dividend yield.

Image source: Getty Images

Ares Capital and its valuation discount
At the end of 2025, Ares Capital had a net asset value of nearly $20 per share. Based on the net asset value reported as of June 30, this BDC lost approximately 3.25% of its underlying value over six months.

In short, investors may be pricing Ares at a discount ahead of further anticipated NAV declines. Still, the reason for these declines is a greater cause for concern than the declines themselves.

$18.51+$0.10 (+0.54%)

NASDAQ · As of 4:00 PM ET 10/20/26

Keep an eye on these two metrics
BDC stocks must distribute at least 90% of their taxable earnings, but Ares' payouts have exceeded its earnings year to date. During both the first and second quarters of 2026, the BDC reported core earnings of $0.47 per share, but dividends totaled $0.48 per share. For 2026, analysts expect Ares Capital's payout ratio to stay around 100%.

However, based on Q2 results, there is arguably little cause for concern. Unrealized losses and tightening credit spreads have weighed most heavily on earnings lately. Ares' nonaccrual rate increased from 2% on June 30, 2025, to 2.4% on June 30, 2026, but according to Fitch Ratings, this rate remains within manageable levels.

Still, wait for Q3 results, set for release on Tuesday, Oct. 27. If realized losses make up the majority of NAV losses or the nonaccrual rate rises significantly above 2.4%, reconsider the risks. If realized NAV losses remain minimal and the nonaccrual rate holds steady, consider it time to buy.

Replacing a Social Security check with investment income sounds like a job for the ultra-wealthy, but three very different portfolios can get there, and the one that requires the least money upfront carries risks that could quietly erase your principal.

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If you have a portfolio that pays $2,950 a month, it generates $35,400 in annual investment income. That amount exceeds the Social Security Administration’s estimated 2027 average check for retired workers, projected at $2,163 after a 3.6% cost-of-living adjustment (COLA). The extra $780 a month leaves room for Medicare premiums, taxes, or a year when the COLA is small. COLAs were 0% in 2009, 2010, and 2015.

Here’s what it takes to generate $35,400 a year from a portfolio. We’ll look at how much capital you’d need at three different yield levels, and how much you’d have to save each month to build each one.

Conservative Tier: Roughly $1 Million at 3.5%
At the most conservative level, take $35,400 divided by 0.035, and it equals about $1,011,000.

This level holds dividend growth funds and broad equity income strategies. One example is the iShares Core Dividend Growth ETF (NYSEARCA:DGRO), which tracks U.S. companies with a history of consistently raising dividends and charges a 0.08% expense ratio. Funds in this category typically yield 2% to 4%. This category requires the most capital. In exchange, the underlying companies tend to raise payouts over time, and the principal has the most room to appreciate.

Moderate Tier: About $682,000 at Today’s Treasury Yields
Rising rates have reshaped this level during 2026. The 10-year Treasury now yields about 5.3%, up from 4% in February. $35,400 divided by 0.0519 equals about $682,000.

Treasury ladders, preferred shares, real estate investment trusts, and covered call strategies such as the Amplify CWP Enhanced Dividend Income ETF (NYSEARCA:DIVO) fill this range. Treasury coupons stay fixed, so $35,400 buys less every year. Covered call strategies trade away some upside for current income. Longer maturities also carry price risk if you sell them before they mature.

Tracking 10% Yields With $354,000
If you want a 10% yield, the math is $35,400 divided by 0.10, which equals $354,000.

Business development companies (BDCs), which lend to midsize private companies, sit at this level alongside mortgage REITs and leveraged income funds. Ares Capital (NASDAQ:ARCC | ARCC Price Prediction), the largest publicly traded BDC, pays $0.48 a quarter, a yield near 10.3% at a share price of about $19.

Ares also shows the tradeoff between a high payout and principal stability. Core earnings of $0.47 per share in the second quarter of 2026 fell just short of the dividend. Net asset value slid to about $19 per share from nearly $20 at the end of 2025, and non-accrual loans (loans no longer paying interest) rose to 2.4% of the portfolio at cost. A high payout can continue even as the underlying principal shrinks.

Why the Smallest Yield Can Win Over a Decade
The conservative portfolio needs the most capital, but its income grows. Assume dividends rise 7% a year, an uncertain rate for a dividend-growth strategy. On that path, $35,400 becomes about $69,600 in 10 years, or roughly $5,800 a month. Income roughly doubles without adding any new money.

The 10% portfolio pays $35,400 in year one and, at best, the same $35,400 in year 10. Over the past two decades, Social Security COLAs have run from 0% to 8.7%. Over that kind of stretch, an income stream that never grows loses purchasing power.

Building Each Portfolio From Zero
Assuming a 7% average annual return over 25 years, reaching each level takes roughly:

Conservative ($1,011,000): about $1,250 a month
Moderate ($682,000): about $840 a month
Aggressive ($354,000): about $440 a month

The gap between the first and last line reflects the added capital required for income designed to grow over time. We laid out the full mix, payment calendar, and withdrawal order for turning a lump sum into something that behaves like a paycheck in a free guide here.

Investment SummaryFuture Value

?

$637,550.30

Total Contributions

?

$252,000.00

Total Interest Earned

?

$385,550.30

Interest to Principal Ratio

?

153.00%

Three Moves Before Choosing a Yield Level
Model taxes alongside Social Security. Under IRS rules, a single filer’s benefits become taxable once combined income exceeds $25,000. The threshold is $32,000 for joint filers. BDC distributions and Treasury interest generally face ordinary income tax rates. Qualified dividends from dividend growth funds can qualify for lower rates. Treasury interest is also exempt from state income tax.

Take a close look at the 10-year total return and NAV history of any fund under consideration. A steadily falling net asset value means some of the income comes from principal.

Hold early savings in something better than the average CD. The national average 12-month CD pays 1.7%, while one-year Treasury bills yield 4.31%. Cash sitting at the average bank rate earns well below what short-term government debt pays right now.

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It may be the least discussed and most consequential transition in personal finance, and plenty of otherwise careful investors walk into it with no real plan. That is exactly what The Definitive Guide to Retirement Income helps answer. It is a free guide from Fisher Investments covering what your retirement will really cost, where the cash flow should come from, and how much you can safely withdraw each year. Learn more here. Learn More Here ›

Contact [email protected] for any questions or corrections.

Qualified Roth distributions escape federal income tax entirely, which changes the math on which investments actually belong inside one. The yield tier you choose determines not just how much capital you need today, but whether your monthly check grows or…

A Roth IRA paying $55,800 a year ($4,650 a month) puts all of that income into the owner’s spending account. Qualified Roth distributions are not counted as gross income once two conditions are met. The withdrawal must come after the 5-year period that starts in the first tax year of a Roth contribution, and the owner must be at least age 59½. Roth IRAs also carry no required minimum distributions while the owner is alive (IRS Publication 590-B), so the income can run for as long as the portfolio supports it.

The capital required equals income divided by yield, and each yield level asks the investor to accept a different kind of risk.

Why the Roth Wrapper Favors High Yielders
In a taxable account, a single taxpayer with $55,800 of ordinary taxable income would reach the 22% bracket, which starts at $48,476 under 2025 rates. Bond interest, REIT dividends, and business development company payouts generally face ordinary income tax rates. Inside a Roth, that tax drag disappears, which helps higher-yield investments most.

Risk-free rates set the floor. The 10-year Treasury yields 5.03%, so a Roth holding only Treasuries would need about $1,109,344. The national average 12-month CD pays 1.7%.

Conservative Tier: 3% to 4% and the Biggest Balance
At 3.5%, $55,800 divided by 0.035 equals about $1,594,000. At 4%, $55,800 divided by 0.04 equals $1,395,000. Typical holdings at this level include dividend-growth ETFs, broad-market index funds, and blue chips that raise their payouts. The iShares Core Dividend Growth ETF (NYSEARCA:DGRO) tracks companies with consistent dividend increases and charges 0.08% a year.

The most capital up front is required here, but the payout tends to rise each year and the principal has the best odds of growing.

Moderate Tier: 5% to 7% With Slower Growth
At 6%, $55,800 divided by 0.06 equals $930,000. At 7%, $55,800 divided by 0.07 equals about $797,000. Preferred shares, equity REITs, high-dividend equity funds, and conservative covered call strategies typically yield in this range. The Global X U.S. Preferred ETF (NYSEARCA:PFFD) offers one way to hold a basket of preferreds.

Preferred dividends are fixed, so the income stays flat while prices rise, and preferred share prices often fall when long-term rates climb. REIT payouts grow, though usually more slowly than those of dividend growth stocks.

Aggressive Tier: 8% to 14% on Half the Capital
At 10%, $55,800 ÷ 0.10 = $558,000. At 12%, $55,800 divided by 0.12 equals $465,000. Business development companies, mortgage REITs, high-yield bond funds, and aggressive covered call funds fill these levels. Ares Capital (NASDAQ:ARCC | ARCC Price Prediction), a lender to middle-market companies, yields about 10.3% on a $1.92 annual dividend. The JPMorgan Nasdaq Equity Premium Income ETF (NASDAQ:JEPQ) sells options on Nasdaq-100 exposure and has yielded roughly 12%.

Distributions at these levels can be cut, and option-writing funds give up some upside when the market rallies. Principal erosion counts for more inside a Roth because losses aren’t deductible, and annual contribution caps make lost capital slow to replace.

How a Smaller Yield Ends Up Paying More
Consider a conservative $1,594,000 portfolio yielding 3.5%, with dividends growing 8% a year. By year nine, its annual income reaches about $111,500, roughly double the starting figure, all of it tax-free. The $465,000 portfolio yielding 12% generates $55,800 in year nine, and only if the payout holds.

Inflation eats into a flat check every year, while a growing one keeps pace. Aggressive levels get there sooner with less capital, but their spending power shrinks over time. (We walked through the mix, the payout calendar, and the withdrawal order for turning a nest egg into monthly income in a free guide: here.)

Three Moves Before Building the Portfolio

Confirm the five-year rule. The first contribution year starts the Roth five-year period. Each conversion carries its own separate 5-year period for the 10% additional tax, so recent conversions affect when the income becomes fully penalty-free.
Split holdings by tax character. BDCs, bond funds, and option-writing funds paying ordinary income suit the Roth. Dividend growers paying qualified dividends lose less to tax in a regular brokerage account.
Compare total return alongside yield. Line up the 10-year total return of a dividend growth fund against a 10%+ income fund, including any share-price declines, before deciding how much of the $55,800 should come from each.

Contact [email protected] for any questions or corrections.

With the 10-year Treasury yielding above 5%, most dividend stocks no longer clear the bar, but five names spanning pipelines, tobacco, private credit, and senior care still do and have the cash flow records to prove it.

Income investors face a higher hurdle than in years past: the 10-year Treasury yield stands at 5.31%, the highest reading in a month. A dividend stock now has to pay more than that and keep paying through recessions, rate swings, and industry shocks. The five names below fit that test. They are two fee-based pipeline partnerships, a tobacco giant, the largest business development company, and a skilled nursing landlord. Each pays above the Treasury benchmark, and each supports the payout with coverage, cash flow, and a long payment record.

Enterprise Products Partners: 1.9x Coverage on a Payout That Keeps Climbing Enterprise Products Partners (NYSE:EPD | EPD Price Prediction) is a high-yield anchor. Units trade at $36.89 and yield 5.99%. The latest quarterly distribution of $0.56 works out to $2.24 annualized.

Dividend safety: Operational distributable cash flow reached $2.3 billion in the second quarter, which is 1.9x coverage of the cash distribution. Adjusted EBITDA hit a record $2.83 billion, up 17% year over year. Even after funding growth projects, the partnership still repurchased $159 million of units in the quarter. Its quarterly payments date back to 1999, and distributions have risen from $0.45 per quarter in 2021 to their current level.

Bull case: Organic growth projects under construction total $6.5 billion for the partnership, including an LPG export expansion and two new Permian gas plants. Those projects should support future raises like the latest 2.8% year-over-year increase. The units trade at a forward P/E of 12x, and Jim Cramer recently called Enterprise “a really well-run company.”

Risk: NGL prices still affect results, and export volumes have settled back after a spring surge linked to Middle East disruptions. The units are down 5.26% over the past month.

MPLX: Guided Double-Digit Distribution Growth Through 2027 This ultra-high-yield pipeline partnership is MPLX (NYSE:MPLX). It yields 7.51% at a unit price of $57.26. The quarterly distribution of $1.0765 totals $4.306 a year.

Dividend safety: Distributable cash flow came in at $1.45 billion in the second quarter. Leverage is 3.7x, below management’s 4.0x target. The partnership has about $1.0 billion left under its unit repurchase approvals. Distribution increases have come every year, from $0.775 to $0.85, then $0.9565, then the current rate.

Bull case: Management plans 12.5% annual distribution growth in both 2026 and 2027. That is rare visibility for an income investor. It raised growth capex to $2.9 billion, with more than 90% going to gas and NGL infrastructure in the Permian and Marcellus. The Natural Gas and NGL segment grew adjusted EBITDA 11% year over year to $614 million, and the units trade at a forward P/E of 12x.

Risk: Borrowing is getting more expensive. Interest expense rose to $291 million from $229 million as the debt load grew to fund expansion.

Altria Group: Raises in Every Year Since 2009 and a Fresh Hike Altria (NYSE:MO) qualifies as ultra-high-yield at 6.25%, with shares at $69.40. The company just raised its quarterly dividend to $1.11 from $1.06, which lifts the forward annual payout to $4.44.

Dividend safety: Management guides full-year adjusted EPS to $5.56 to $5.72, which sits well above the $4.44 forward dividend. Altria paid $7.0 billion in dividends last year and returned $8 billion to shareholders in total. The dividend record shows a raise in every year from 2009, when the quarterly payout was $0.32, through the latest increase. Negative stockholders’ equity reflects years of buybacks rather than weak operations.

Bull case: Pricing power keeps the cash coming. The smokeable segment runs at a 65.1% margin, and $720 million remained on the buyback after the first quarter, which helps support per-share growth. The forward P/E is 12x, and shares are up 26.2% year to date.

Risk: Altria’s core market is shrinking. Marlboro’s retail share slipped 1.4 pts to 39.7%, and industry cigarette volumes are falling 5% to 10%.

Ares Capital: A 10.2% Yield With $1.38 Per Share in Reserve The fattest payout in this group goes to Ares Capital (NASDAQ:ARCC), with an ultra-high yield of 10.2% at $18.38. It pays $0.48 a quarter, or $1.92 a year.

Dividend safety: Second-quarter core EPS of $0.47 came in line with estimates and slightly below the quarterly dividend. Management pointed to the full-year picture instead: “Over the last 12 months, core earnings have exceeded our regular dividend, while an additional 15 cents per share of net realized gains has provided further support for our overall dividend-paying capacity.” Ares also has taxable-income spillover of about $988 million, or $1.38 per share, held in reserve. Leverage is 1.12 times net of cash, and the company has about $6 billion of available liquidity. The dividend has held at $0.48 every quarter since early 2023.

Bull case: About 71% of the $29.35 billion portfolio is floating rate, so high Treasury yields help income. The shares trade at 0.99 times book value, which means investors pay roughly NAV for a lender spread across 619 companies.

Risk: Credit is slipping. Net unrealized losses reached $183 million in the second quarter, NAV per share fell to $19.35 from $19.94, and non-accruals rose to 2.4% from 1.8%. That is still below the company’s roughly 3% post-financial-crisis average.

Omega Healthcare Investors: Boomer Demand Meets a Freshly Raised Dividend Omega Healthcare Investors (NYSE:OHI) is a high-yield healthcare REIT. It yields 5.93% at $44.09. The quarterly dividend just rose to $0.68 after holding at $0.67 since 2020, which brings the forward annual payout to $2.72.

Dividend safety: Second-quarter AFFO of $0.83 per share and FAD of $0.78 per share both exceed the new dividend. Full-year AFFO guidance went up to $3.22 to $3.26 per share. Operator coverage improved to 1.65 times. Leverage is 3.3 times and fixed-charge coverage is 6.5 times, after asset-sale proceeds brought the revolver balance down to $6 million. Omega has paid quarterly dividends since 1999.

Bull case: Demographics are now working in Omega’s favor. Outgoing CEO Taylor Pickett said on his final earnings call: “Now, however, the long-anticipated baby boomer aging is here and is showing up in demand for both SNFs and senior housing.” Matthew Gourmand, who leads the team taking over, called “6-7% annualized FAD growth” very achievable.

Risk: Tenant trouble remains. Operator Genesis Healthcare is in Chapter 11 with $148.5 million of Omega loans outstanding, and the shares fell 5.26% over the past week.

Five Income Streams Built to Outlast a High-Rate Market Each of these payouts is supported by something specific. Enterprise covers its distribution 1.9x, MPLX has guided raises through 2027, Altria has increased its dividend every year since 2009, Ares Capital holds $1.38 per share in spillover, and Omega covers its dividend with FAD. Yields run from Omega’s 5.93% to Ares Capital’s 10.2%, and all five pay more than the 10-year Treasury. Together they spread retirement income across pipelines, consumer staples, private credit, and senior care. The appeal for boomers is simple: collect the checks without ever having to sell a share. That’s the same ladder approach we laid out in a free guide to building lifetime dividend income. For investors who need a paycheck they can count on, that mix of coverage and diversification matters as much as the yield.

Contact [email protected] for any questions or corrections.

Skipping bonds in retirement sounds reckless, but a growing number of retirees are building six-figure income portfolios without a single Treasury note. The question is whether the yield is worth the risk hiding inside this strategy.

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Pulling in $8,550 a month adds up to $102,600 a year, and the portfolio below aims to cover that with six US-listed income holdings and no bonds. Based on mid-October 2026 yields, the combined yield comes in at about 5.8%. Dividing $102,600 by that yield shows you need roughly $1,757,000 in capital.

What a Zero Bond Portfolio Gives Up Treasuries offer real, low-risk income right now. The 10-year Treasury yields 5.2%, and 52-week bills yield 4.4%, so this portfolio’s yield still sits above the 10-year. The two income sources work very differently, though. A bond’s income is contractual, and its price mostly moves with interest rates. Dividends, REIT payouts, business development company distributions (BDC), and options premiums are all discretionary, so they rise or fall with business conditions and market swings.

Bonds also tend to hold up when stocks fall, so a retiree can sell them in a bad year instead of selling stocks. That matters because of sequence risk: selling stocks during an early-retirement decline locks in losses the portfolio may never recover from. Without bonds, the portfolio lacks that buffer. Over the past month, as the 10-year yield rose 0.4 points, Realty Income (NYSE:O) fell 7%, and Ares Capital (NASDAQ:ARCC | ARCC Price Prediction) lost 3%. That was a mild decline, and a deeper bear market would test a zero-bond portfolio more severely.

Schwab’s Dividend Fund Supplies the Growth A wildly popular investment option, the Schwab U.S. Dividend Equity ETF (NYSEARCA:SCHD) holds quality-screened dividend payers. A 40% weight comes to $702,754. At a 3.2% yield, that produces $22,497 a year. Its latest quarterly payout of $0.2665 was up from $0.2525 the quarter before. This is the growth engine, but it’s also the lowest-yielding fund in the mix.

JPMorgan’s Covered Call Fund Trades Upside for Income Another big name, JPMorgan Equity Premium Income ETF (NYSEARCA:JEPI) owns large-cap stocks and sells call options on them for income, which caps its upside. A 20% weight equals $351,377. At a trailing 8.0% yield, that pays $28,161. Monthly payouts in 2026 have run from $0.34134 to $0.44761 per share, with the latest being the lowest.

Nasdaq Version Adds Yield and Overlap This ETF (NASDAQ:JEPQ) uses the same strategy on Nasdaq stocks. A 10% weight is $175,689. At 11.3%, it produces $19,854. Its 2026 payouts have run from $0.46572 to $0.70497. The two JPMorgan funds overlap. Both hold Alphabet, Amazon, Apple, and NVIDIA, and NVIDIA alone makes up 7% of JEPQ. Together they put 30% of the portfolio into a single strategy.

Monthly Checks Backed by AFFO Coverage Realty Income is a net-lease real estate investment trust (REIT) that pays monthly. A 10% weight equals $175,689, and at 5.9% that pays $10,449. The annualized dividend of $3.252 is about 73% of 2026 adjusted funds from operations (AFFO) guidance. AFFO is a common measure for a property company because GAAP earnings subtract depreciation on buildings that often hold their value. In September, the company raised its monthly dividend for the 136th time.

Ares Capital and the Dividend Coverage Question Ares Capital is the largest publicly traded BDC, a company that lends to midsize private businesses. A 10% weight is $175,689. At 10.3%, it pays $18,077. Second-quarter core earnings of $0.47 covered about 98% of the $0.48 dividend. Net asset value per share fell to $19.35 from $19.94.

Johnson & Johnson Brings Stability Over Yield Johnson & Johnson is a healthcare company and a longtime dividend grower. A 10% weight is $175,689. At a 2.0% yield, it pays $3,561. The $5.36 forward dividend is about 46% of the low end of the company’s adjusted EPS guidance. Its job here is stability, and it’s doing a good job at that.

Safe Only With a Cash Reserve Going without bonds can work for a retiree, but only with a separate cash reserve. Holding two years of income, or $205,200, in Treasury bills on top of the portfolio means withdrawals can continue through a downturn without selling anything. This setup fits retirees whose Social Security or a pension already covers essential bills. It doesn’t fit anyone who depends on every dollar of this income.

On taxes, dividends from Schwab’s fund and Johnson & Johnson are mostly qualified, which means they’re taxed at 0%, 15%, or 20%. REIT payouts, BDC distributions, and options-premium income are mostly taxed as ordinary income, so those holdings fit best in an IRA. Return of capital is the investor’s own money coming back, and it reduces cost basis.

Most of the income rests on Schwab’s fund and Johnson & Johnson raising their dividends. The JPMorgan funds and Ares Capital produce the payouts most likely to change. Each year, two numbers need a check: whether Ares Capital’s core earnings still cover its dividend, and whether the JPMorgan funds’ trailing 12-month distributions are holding steady.

Contact [email protected] for any questions or corrections.

Ares Capital (ARCC - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.

Shares of this private equity firm have returned -6% over the past month versus the Zacks S&P 500 composite's +2.4% change. The Zacks Financial - SBIC & Commercial Industry industry, to which Ares Capital belongs, has lost 6.5% over this period. Now the key question is: Where could the stock be headed in the near term?

Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.

Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.

We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For the current quarter, Ares Capital is expected to post earnings of $0.48 per share, indicating a change of -4% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.

For the current fiscal year, the consensus earnings estimate of $1.91 points to a change of -5% from the prior year. Over the last 30 days, this estimate has remained unchanged.

For the next fiscal year, the consensus earnings estimate of $1.94 indicates a change of +2% from what Ares Capital is expected to report a year ago. Over the past month, the estimate has remained unchanged.

Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Ares Capital is rated Zacks Rank #3 (Hold).

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Projected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.

For Ares Capital, the consensus sales estimate for the current quarter of $780.31 million indicates a year-over-year change of -0.2%. For the current and next fiscal years, $3.1 billion and $3.19 billion estimates indicate +1.7% and +2.6% changes, respectively.

Last Reported Results and Surprise HistoryAres Capital reported revenues of $768 million in the last reported quarter, representing a year-over-year change of +3.1%. EPS of $0.47 for the same period compares with $0.5 a year ago.

Compared to the Zacks Consensus Estimate of $768.98 million, the reported revenues represent a surprise of -0.13%. The EPS surprise was 0%.

Over the last four quarters, Ares Capital surpassed consensus EPS estimates times. The company topped consensus revenue estimates just once over this period.

ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.

While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.

The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Ares Capital is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Ares Capital. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.

Gemini Space Station (NASDAQ:GEMI – Get Free Report) and Ares Capital (NASDAQ:ARCC – Get Free Report) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, profitability, institutional ownership, dividends, valuation and risk.

Profitability This table compares Gemini Space Station and Ares Capital’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets Gemini Space Station -250.13% -75.66% -22.38% Ares Capital 30.91% 9.80% 4.50% Insider & Institutional Ownership 27.4% of Ares Capital shares are owned by institutional investors. 63.2% of Gemini Space Station shares are owned by insiders. Comparatively, 0.5% of Ares Capital shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings This is a breakdown of recent ratings for Gemini Space Station and Ares Capital, as reported by MarketBeat. Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score Gemini Space Station 4 4 3 0 1.91 Ares Capital 0 3 8 0 2.73 Gemini Space Station presently has a consensus price target of $5.61, suggesting a potential upside of 27.69%. Ares Capital has a consensus price target of $20.39, suggesting a potential upside of 9.85%. Given Gemini Space Station’s higher possible upside, research analysts plainly believe Gemini Space Station is more favorable than Ares Capital.

Valuation and Earnings This table compares Gemini Space Station and Ares Capital”s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio Gemini Space Station $179.57 million 3.17 -$582.81 million ($9.71) -0.45 Ares Capital $3.05 billion 4.37 $1.30 billion $1.35 13.75 Ares Capital has higher revenue and earnings than Gemini Space Station. Gemini Space Station is trading at a lower price-to-earnings ratio than Ares Capital, indicating that it is currently the more affordable of the two stocks.

Summary Ares Capital beats Gemini Space Station on 11 of the 13 factors compared between the two stocks.

(Get Free Report)

Our mission is to unlock the next era of financial, creative, and personal freedom. Gemini envisions a future where crypto will redesign the global financial system, the internet, and money in a way that provides greater choice, independence, and opportunity for all. As a trusted bridge between the traditional financial system and the emerging cryptoeconomy, we are providing access for individuals and institutions to a decentralized future that is more open, fair, and secure. Gemini was founded in 2014 to be the most trusted, secure, and easy way to buy, sell, and store crypto assets. As of July 31, 2025, we serve approximately 549,000 MTUs and approximately 10,000 institutions in over 60 countries, with over $21 billion of assets on our platform, over $285 billion in lifetime trading volume, and over $830 billion in transfers processed on our platform. Since our founding, we have watched the overall crypto market capitalization expand from under $10 billion to over $3 trillion as users discover the onchain world. Our core exchange product has expanded over time to become a comprehensive platform for our users to engage with the cryptoeconomy, including a derivatives exchange, staking services, an over-the-counter (“OTC”) trading desk, institutional-grade custody, a New York Department of Financial Services (“NYDFS”)-regulated stablecoin, a U.S. credit card, and a Web3 studio for NFTs. We support a large variety of crypto assets on our platform, including bitcoin, ether, and stablecoins. We strive to deliver a seamless user experience to both retail and institutional users: • Retail: We often serve as a primary gateway for individual retail users into the cryptoeconomy. We provide a user-friendly, secure platform and mobile app for users to buy, sell, store, stake, and transfer a variety of crypto assets. Our products aim to suit the needs of beginners and sophisticated users alike. • Institutional: We provide institutional investors, including asset managers, hedge funds, proprietary trading firms, and corporations with a robust and secure platform to access crypto markets. We offer advanced trading, OTC trading, and institutional-grade custody. On the Gemini platform, a user can begin their crypto journey with $1 or $1 million and engage with our continually updated educational materials to learn about all aspects of the cryptoeconomy. Since our founding, we have sought to adhere to high standards of security, regulation, and compliance. We operate exchanges through regulated entities in the United States and abroad. In addition, we offer digital asset custody services through Gemini Trust, a New York limited purpose trust company. All customer assets are held in full on our platform, ensuring every unit of cryptocurrency or fiat held by a user is available to the user. We hold money transmission licenses (“MTLs”) or the statutory equivalent in all states that require such licenses so that we are able to operate in all 50 states and have direct access to fiat banking rails. We believe our early focus on security and compliance has made us one of the most trusted brands in crypto and on-ramps into the cryptoeconomy. Our crypto-native technology stack at the core of our platform enables us to support advanced functionality and complex blockchain integrations while serving the demands of a global, 24/7/365 crypto market. Our proprietary, in-house custody solutions enable us to offer products that are both secure and easy to use. This approach to security, innovation, and an elegant user experience has created a powerful flywheel effect. Our product innovation and security have attracted a growing, loyal user base, which has allowed us to reinvest in new, innovative products at the forefront of a complex and rapidly growing industry. This furthers our competitive position and helps solidify us as one of the leading on-ramps into the cryptoeconomy. We have grown to a significant scale since our founding and continue to benefit from a loyal user base that expands over time. Longer term, we expect to continue to grow and diversify our transaction-based revenue through the growth of newly launched products, such as derivatives, and the diversification of assets on our platform to represent a wider variety of crypto-asset use cases with less cross-asset correlation in volatility. We also expect growth in non-transaction revenue to contribute to smaller market-based fluctuations in our results. Our total revenue is largely generated from transaction fees earned on volume-based trades across retail and institutional users. For the year ended December 31, 2024, transaction revenue represented 69.7% of total revenue, and our total revenue was $142.2 million, with net income (loss) of $(158.5) million and Adjusted EBITDA of $(13.2) million. For the six months ended June 30, 2025, transaction revenue represented 65.5% of total revenue, and our total revenue was $68.6 million, with net income (loss) of $(282.5) million and Adjusted EBITDA of $(113.5) million. Our principal executive offices are located in New York, New York.

About Ares Capital (Get Free Report)

Ares Capital Corporation is a business development company specializing in acquisition, recapitalization, mezzanine debt, restructurings, rescue financing, and leveraged buyout transactions of middle market companies. It also makes growth capital and general refinancing. It prefers to make investments in companies engaged in the basic and growth manufacturing, business services, consumer products, health care products and services, and information technology service sectors. The fund will also consider investments in industries such as restaurants, retail, oil and gas, and technology sectors. It focuses on investments in Northeast, Mid-Atlantic, Southeast and Southwest regions from its New York office, the Midwest region, from the Chicago office, and the Western region from the Los Angeles office. The fund typically invests between $20 million and $200 million and a maximum of $400 million in companies with an EBITDA between $10 million and $250 million. It makes debt investments between $10 million and $100 million The fund invests through revolvers, first lien loans, warrants, unitranche structures, second lien loans, mezzanine debt, private high yield, junior capital, subordinated debt, and non-control preferred and common equity. The fund also selectively considers third-party-led senior and subordinated debt financings and opportunistically considers the purchase of stressed and discounted debt positions. The fund prefers to be an agent and/or lead the transactions in which it invests. The fund also seeks board representation in its portfolio companies.

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A retirement portfolio that replaces a missing paycheck needs cash that arrives on schedule, not just when markets cooperate. Six high-yield names across pipelines, tobacco, and private credit can get you surprisingly close to that target on a modest starting…

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For retirees, the toughest part of leaving a paycheck behind is losing its cycle. Social Security and any pension income set a floor. Your portfolio must fill the gap between that floor and the retirement you planned, ideally with cash that arrives on schedule whether the market is up or down.

High-yield dividend stocks are one way to fill that gap. Here is what a $12,500 stake in each of these six high-yield names would return, for a total investment of $75,000. At current prices and forward payout rates, the group produces $6,873.76 in annual passive income, a combined yield of 9.17%. That is $126.24 short of $7,000 in year one. If you reinvest the first year of payouts at the same combined yield, year-two income comes to about $7,503.75, assuming prices and payouts stay where they are.

The group includes three business development companies (BDCs), two midstream master limited partnerships (MLPs), and a tobacco company. The stocks are listed from lowest yield to highest.

Enterprise Products Partners Stock #6: Enterprise Products Partners (NYSE:EPD | EPD Price Prediction) Yield: 6.05% Units for $12,500: 337.56 Annual Passive Income: ~$756.14 Enterprise Products runs pipelines, processing plants, storage and export terminals that move natural gas liquids, crude oil, natural gas and petrochemicals. Second-quarter 2026 adjusted EBITDA reached a record $2.83 billion (+17% year over year), and marine terminal volumes rose 33% to a record.

As an MLP, the partnership passes most of its cash flow through to unitholders. Its quarterly distribution of $0.56 annualizes to $2.24. Operating distributable cash flow of $2.3 billion covered the payout 1.9x, which is among the best coverage in midstream. Units are issued with a K-1, and IRA holders should keep in mind that MLP income can produce unrelated business taxable income (UBTI) inside a retirement account.

Altria Stock #5: Altria (NYSE:MO) Yield: 6.40% Shares for $12,500: 180.17 Annual Passive Income: ~$799.94 The company sells Marlboro, Copenhagen, Skoal, On!, and NJOY. Its high yield reflects a mature business with declining cigarette volumes that pays out most of its free cash flow as dividends. Altria raised its quarterly dividend to $1.11 from $1.06, and it pays out on October 9, 2026.

On safety, Altria pays out about 75% to 80% of adjusted EPS. It reaffirmed full-year 2026 adjusted EPS guidance of $5.56 to $5.72. The main risk is that Marlboro’s retail share fell to 39.7%.

Energy Transfer Stock #4: Energy Transfer (NYSE: ET) Yield: 6.59% Units for $12,500: 605.33 Annual Passive Income: ~$823.24 Energy Transfer runs interstate and intrastate gas pipelines, NGL and crude systems, and export terminals. Second-quarter adjusted EBITDA climbed to $5.07 billion (+31% year over year), and full-year guidance rose to $18.8 billion to $19.1 billion.

Its $0.34 quarterly distribution was the 19th consecutive quarterly increase. Adjusted distributable cash flow rose to approximately $2.6 billion from $2.0 billion a year earlier. Management is aiming for “a long-term annual distribution growth rate of 3 to 5 percent.” Energy Transfer is also an MLP that issues K-1s, so the same UBTI consideration applies to IRA holders.

Ares Capital Stock #3: Ares Capital (NASDAQ:ARCC) Yield: 10.42% Shares for $12,500: 678.61 Annual Passive Income: ~$1,302.93 Ares is the largest publicly traded BDC. It lends to middle-market companies through a $29.35 billion portfolio spread across 619 companies. Its yield is high because the BDC structure requires it to pay out about 90% of taxable income.

Second-quarter core earnings of $0.47 per share came in just under the $0.48 dividend. Management noted that core earnings exceeded the regular dividend over the trailing 12 months. It also cited spillover income of $1.38 per share as a buffer. Non-accruals rose to 2.4% at cost, and the dividend has been stable or rising for 17 consecutive years.

Blue Owl Capital Stock #2: Blue Owl Capital (NYSE:OBDC) Yield (base distribution): 12.38% Shares for $12,500: 1,247.50 Annual Passive Income: ~$1,546.91 Blue Owl Capital Corporation holds a $14.96 billion portfolio, mostly first-lien loans. This year, it cut its base dividend to $0.31 from $0.37. Adjusted net investment income (NII) of $0.34 covered the new base 110%, although part of that came from a one-time Mavis realization. Spillover income of about $0.29 per share adds a buffer.

Supplemental payouts, such as the recent $0.02, are extra and not counted in this income figure. Shares are down 11.63% year to date, as concerns about the private credit market have grown. Reuters reported that withdrawal requests at a major Blue Owl fund slowed as private credit turmoil eased.

Blackstone Secured Lending Fund Stock #1: Blackstone Secured Lending Fund (NYSE:BXSL) Yield: 13.16% Shares for $12,500: 533.96 Annual Passive Income: ~$1,644.60 This Blackstone-managed BDC holds 96.8% of its portfolio in first-lien senior secured loans, and 96.3% of the portfolio is floating rate. It has paid $0.77 per share every quarter since late 2023.

Coverage is tighter here. Second-quarter NII of $0.75 covered 97% of the dividend. NAV fell to $25.53 from $27.33, Moody’s has a Baa2 negative outlook on the fund, and co-CEO Jonathan Bock resigned in late July 2026. The top yield in this group shows those risks.

Six Positions, One Income Stream Name Yield Annual Dividend Income Enterprise Products Partners 6.05% $756.14 Altria Group 6.40% $799.94 Energy Transfer 6.59% $823.24 Ares Capital 10.42% $1,302.93 Blue Owl Capital 12.38% $1,546.91 Blackstone Secured Lending Fund 13.16% $1,644.60 Total 9.17% $6,873.76 Together, these six holdings yield $6,873.76 of passive income each year on a $75,000 investment, a combined yield of 9.17%. Blackstone Secured Lending contributes $1,644.60, Blue Owl adds $1,546.91, Ares adds $1,302.93, Energy Transfer adds $823.24, Altria adds $799.94, and Enterprise Products adds $756.14 to complete the set.

Getting to $7,000 a year depends on reinvesting. Reinvesting every distribution purchases more shares, so each quarterly payment is slightly larger than the last. Over time, that compounding can transform an initial income stream into a substantially larger one.

Contact [email protected] for any questions or corrections.

Shares of Ares Capital Corporation (NASDAQ:ARCC – Get Free Report) have been given an average recommendation of “Moderate Buy” by the eleven analysts that are currently covering the firm, MarketBeat Ratings reports. Three research analysts have rated the stock with a hold recommendation and eight have given a buy recommendation to the company. The average 1 year price target among analysts that have covered the stock in the last year is $20.60.

A number of research analysts have recently issued reports on ARCC shares. Wells Fargo & Company reiterated an “equal weight” rating and set a $19.00 price objective (down from $20.00) on shares of Ares Capital in a report on Friday, June 12th. JPMorgan Chase & Co. lowered their target price on shares of Ares Capital from $19.00 to $18.50 and set an “overweight” rating on the stock in a report on Thursday, July 2nd. Keefe, Bruyette & Woods dropped their price target on shares of Ares Capital from $21.00 to $20.00 and set an “outperform” rating on the stock in a research report on Thursday, July 30th. Weiss Ratings reiterated a “hold (c)” rating on shares of Ares Capital in a research note on Friday, September 4th. Finally, Wall Street Zen raised Ares Capital from a “sell” rating to a “hold” rating in a report on Saturday, September 19th.

Read Our Latest Report on ARCC

Institutional Investors Weigh In On Ares Capital Institutional investors and hedge funds have recently bought and sold shares of the stock. Van ECK Associates Corp boosted its holdings in Ares Capital by 22.2% during the 2nd quarter. Van ECK Associates Corp now owns 13,306,095 shares of the investment management company’s stock worth $246,562,000 after acquiring an additional 2,418,984 shares during the last quarter. Strs Ohio purchased a new stake in shares of Ares Capital in the first quarter valued at about $189,210,000. Bank of America Corp DE raised its holdings in shares of Ares Capital by 16.0% in the first quarter. Bank of America Corp DE now owns 9,135,454 shares of the investment management company’s stock valued at $164,621,000 after purchasing an additional 1,259,230 shares during the last quarter. Legal & General Group Plc bought a new position in shares of Ares Capital during the second quarter valued at about $120,538,000. Finally, HighTower Advisors LLC lifted its position in shares of Ares Capital by 9.5% during the second quarter. HighTower Advisors LLC now owns 3,870,130 shares of the investment management company’s stock valued at $71,714,000 after purchasing an additional 335,197 shares in the last quarter. 27.38% of the stock is owned by hedge funds and other institutional investors. Ares Capital Price Performance Shares of NASDAQ:ARCC opened at $18.64 on Wednesday. Ares Capital has a twelve month low of $17.40 and a twelve month high of $21.14. The stock’s 50 day moving average is $19.57 and its 200-day moving average is $18.94. The company has a quick ratio of 1.28, a current ratio of 1.28 and a debt-to-equity ratio of 1.14. The firm has a market capitalization of $13.38 billion, a price-to-earnings ratio of 13.81 and a beta of 0.61.

Ares Capital (NASDAQ:ARCC – Get Free Report) last posted its quarterly earnings results on Wednesday, July 29th. The investment management company reported $0.47 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.47. Ares Capital had a net margin of 30.91% and a return on equity of 9.80%. The business had revenue of $768.00 million during the quarter, compared to the consensus estimate of $770.19 million. During the same quarter last year, the firm posted $0.50 EPS. Sell-side analysts forecast that Ares Capital will post 1.91 EPS for the current fiscal year.

Ares Capital Dividend Announcement The business also recently announced a quarterly dividend, which was paid on Wednesday, September 30th. Investors of record on Tuesday, September 15th were given a dividend of $0.48 per share. The ex-dividend date of this dividend was Tuesday, September 15th. This represents a $1.92 annualized dividend and a dividend yield of 10.3%. Ares Capital’s payout ratio is presently 142.22%.

Ares Capital Company Profile (Get Free Report)

Ares Capital Corporation (NASDAQ: ARCC) is a specialty finance company that operates as a business development company (BDC). It provides financing to middle-market companies, primarily through directly originated loans and other investments. Ares Capital seeks to support businesses that may require capital for acquisitions, growth initiatives, recapitalizations, refinancings and other corporate purposes.

The company invests across a range of industries and typically provides first-lien senior secured loans, second-lien loans, subordinated debt and, to a lesser extent, equity investments.

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Most retirement investors chase yield without realizing the account holding those dividends matters as much as the dividends themselves. Six carefully chosen funds at a blended 9.1% yield can turn a Roth IRA into a tax-free income machine, but getting…

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A Roth IRA that generates $4,850 a month in retirement sounds like a big target, but the bigger advantage is where that money goes on your tax return: nowhere. WIth qualified withdrawals, that $58,200 in annual income is tax free.

However, this generally takes place after age 59½, with the account open for at least five years. Outside a Roth, most income from REITs, BDCs, and option-income funds will count as ordinary income. Inside one, the yield you see on the fund page is the yield you keep. This article builds that income from six distinct holdings and one planning number: a 9.1% blended yield.

Six Holdings Producing a 9.1% Blended Yield The portfolio allocates 25% to JPMorgan Nasdaq Equity Premium Income ETF (NASDAQ:JEPQ) and spreads 15% across NEOS Nasdaq-100 High Income ETF (NASDAQ:QQQI), Realty Income (NYSE:O), Ares Capital (NASDAQ:ARCC | ARCC Price Prediction), Main Street Capital (NYSE:MAIN) and Reaves Utility Income Fund (NYSEAMERICAN:UTG).

At a 9.1% yield, you would need about $640,264 to generate around $58,200 a year.

Holding Weight Capital Current Yield Annual Income JEPQ 25% $160,066 11.1% $17,838 QQQI 15% $96,040 13.6% $13,027 O 15% $96,040 6.0% $5,780 ARCC 15% $96,040 10.2% $9,777 MAIN 15% $96,040 7.8% $7,526 UTG 15% $96,040 7.1% $6,862 At current payout rates, the mix yields about 9.5% including Main Street’s supplemental dividends and 9.2% on regular payouts alone. Planning at 9.1% leaves room to cut distributions without falling below the monthly target. Turning a single investment into a predictable monthly check is the whole exercise in our free paycheck portfolio guide, which you can grab here.

Where Each Dollar of Income Comes From Nasdaq Option Premiums Fund 40% of the Portfolio JEPQ writes calls on Nasdaq-100 stocks and manages $40.7 billion in net assets. Its monthly payouts this year ran from $0.47 to $0.70 per share, so the income check will change. QQQI paid $7.64 over the past year on shares near $56. In its fiscal year ending May 2025, between 94% and 99% of each QQQI distribution was classified as return of capital. Inside a Roth, the tax label gauges how much of the payout comes from sources other than net investment income. Both funds cap upside in sharp rallies, though JEPQ still rose 20% over the past year and QQQI rose 18%.

Real Estate and Utilities Add Rising Payouts Realty Income has raised its dividend for 115 consecutive quarters, keeps its portfolio 98.8% occupied, and raised 2026 AFFO guidance to $4.44 to $4.45 per share. Its shares fell 12% over the past month. Reaves raised its monthly payout to $0.21 from $0.20. It uses modest debt and can trade at a premium or discount to net asset value.

Private Credit Brings Floating-Rate Income Ares Capital has paid $0.48 every quarter since 2023 from a portfolio covering 619 companies, with 71% of its portfolio at floating rates and non-accruals at 2.4%. Main Street pays $0.265 monthly plus a $0.30 supplemental, its twentieth consecutive quarterly extra. If interest rates fall, income from floating-rate loans falls with them.

Payout Growth Separates a Durable Portfolio From a Fading One Three holdings already show rising payouts. Main Street’s regular monthly dividend rose from $0.24 in early 2024 to $0.265, and Reaves moved up from $0.19 over the same period. Ares Capital has held flat. Payouts that stay flat lose buying power each year inflation runs, so the lower-yielding holdings carry the job of keeping $4,850 meaningful in a decade.

Steps to Take Before Building This Portfolio Map the funding path. Annual Roth contribution caps mean a balance near $640,000 usually comes from decades of compounding or Roth conversions. If you convert, compare the tax bill at today’s bracket with the tax-free income it buys later. Stress test the income. Rerun the math using JEPQ’s lowest monthly payout of the past year, $0.45, and Main Street without supplementals. Find out how far monthly income drops before it misses $4,850. Track total return alongside yield. Realty Income’s shares fell 5% over the past year while JEPQ gained. Checking each holding’s price and payout once a year shows whether the principal is holding up or quietly shrinking. Model how a Roth balance grows toward the $640,000 target with regular annual contributions and reinvested returns:

Contact [email protected] for any questions or corrections.

From a pharma giant rebuilding after a blockbuster patent loss to a pipeline partnership targeting double-digit distribution raises through 2027, these five stocks span wildly different industries yet share one thing: cash flow that keeps covering the check.

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Five companies in five different industries pay these dividends: drugs, oil, pipelines, private credit and nicotine. Each one is supported by cash flow that covers the payout today and a track record that shows how management handles it. Forward yields run from 2.63% to 10.18%, and the most recent sign of confidence came days ago, when Philip Morris International (NYSE:PM | PM Price Prediction) raised its quarterly dividend to $1.60 from $1.47. That is an 8.8% increase. A look at each payout’s cash flow and balance sheet shows how they hold up.

AbbVie: Immunology Growth Is Paying for a Rising Dividend AbbVie (NYSE:ABBV) pays an annualized forward dividend of $6.92. At the latest price of $262.90, that works out to a 2.63% forward yield. The next ex-dividend date is October 15, 2026, and payment follows on November 16, 2026. Its yield is the lowest on this list. AbbVie earns its place through dividend growth and coverage.

Dividend safety: AbbVie’s GAAP trailing EPS of $3.54 sits below the dividend because acquired research charges drag on reported earnings. That drives the trailing P/E to about 74x. Adjusted earnings give a better picture of cash. Management’s adjusted EPS guidance of $13.87 to $14.07 puts the forward dividend at about 50% of the center. The free cash flow yield of 3.83% is higher than the dividend yield. Net debt stands at 2.26x EBITDA, and interest coverage is 6.94x. The dividend history shows a higher quarterly payment every year since AbbVie began trading as a standalone company in 2013. The payment has gone from $0.40 in 2013 to $1.73 in 2026.

Bull case: AbbVie has replaced most of what it lost when Humira’s patent protection ended. Second-quarter results showed Skyrizi sales rising 24.4% to $5.505 billion and Rinvoq sales climbing 24.5% to $2.525 billion. Humira fell to just $756 million. Neuroscience grew 20.3% to $3.23 billion, and total revenue reached $16.99 billion, up 10.2% from a year earlier. The stock trades at about 16x forward earnings. The average analyst target is $278.86, with 8 strong buy and 16 buy ratings.

Risk: Acquisitions keep moving earnings guidance around. A pending $10.9 billion deal knocked $0.14 off the 2026 outlook. Meanwhile, Imbruvica sales fell 29.4%, so the immunology drugs have to keep growing quickly to make up the difference.

Chevron: Record Output and a 39-Year Raise Streak Chevron (NYSE:CVX) pays $1.78 per quarter, an annualized $7.12. That is a 3.44% forward yield at $206.79. The yield has come down this year because the stock is up 39.38% year to date.

Dividend safety: Chevron generated $18.095 billion in second-quarter free cash flow. Based on the current share count, one quarter’s dividend costs about $3.49 billion. The dividend matches about 69% of trailing EPS of $10.38. The balance sheet is conservative. Net debt is 1.08x EBITDA, debt-to-equity is 0.25, and interest coverage is 13.7x. Chevron also paid down $8.41 billion of debt during the quarter. The company called its most recent increase its 39th consecutive annual raise, and the dividend history supports the recent run: $1.51 in 2023, $1.63 in 2024, $1.71 in 2025 and $1.78 in 2026.

Bull case: The Hess acquisition is paying off. Worldwide production rose 20% to 4,070 MBOED, and U.S. upstream output hit a record 2,077 MBOED. Chevron reached $3 billion in annual structural cost savings six months early and captured $1.5 billion in Hess synergies within a year of closing. It also signed a 20-year, 2.67 GW agreement to supply power to an AI data center in Texas. CEO Mike Wirth said the quarter delivered “record U.S. upstream production, record crude throughput in our U.S. refineries, and exceptional reliability across key assets.” The stock trades at about 15x forward earnings, and analysts’ average target is $224.62.

Risk: High oil prices drove much of the second-quarter result. Brent averaged $104 per barrel, compared with $68 a year earlier. In the first quarter, free cash flow was negative $1.549 billion, so cash generation can swing sharply from one quarter to the next.

MPLX: Ultra-High-Yield Distributions With 12.5% Raises Planned MPLX (NYSE:MPLX) pays $1.0765 per unit each quarter, or $4.306 a year. At $56.39, that is a 7.64% forward yield, which puts MPLX firmly in ultra-high-yield territory. The units are down 4.42% over the past month. MPLX is a master limited partnership, so unitholders get a K-1 tax form instead of a 1099.

Dividend safety: Second-quarter distributable cash flow of $1.45 billion covered the distribution with room to spare. Management is aiming a 1.3 coverage ratio for 2026, 2027 and beyond. Leverage is 3.7x, below the partnership’s 4.0x target. The payout went from $0.85 in 2024 to $0.9565 and then $1.0765, which matches two straight raises of 12.5%. Management said on the call that it does not need acquisitions to hit its 2027 coverage goal.

Bull case: Natural gas volumes are driving growth. Operated gathering throughput rose 15% to 6,859 MMcf/d, and Natural Gas and NGL Services adjusted EBITDA increased 11% to $614 million. Harmon Creek III started operating in August. The Blackcomb pipeline should be in full service in the fourth quarter, and BANGL volumes are expected to reach 300,000 barrels per day by year-end. CEO Maryann Mannen said MPLX “anticipate[s] growing our distribution at this rate again in 2026 and in 2027.” Analysts’ average target is $62.85.

Risk: MPLX depends heavily on its parent refiner, which is its primary customer. It is also spending more: 2026 growth capital rose by $500 million to $2.9 billion, interest expense is going up, and crude pipeline throughput fell 5%.

Ares Capital: A 10% Yield Backed by $1.38 Per Share in Spillover Income Ares Capital (NASDAQ:ARCC) pays $0.48 per quarter, or $1.92 a year. At $18.86, that is an ultra-high 10.18% forward yield. The shares trade just below net asset value (NAV) per share of $19.35, at a price-to-book ratio of 0.99.

Dividend safety: Second-quarter core EPS of $0.47 came in a cent below the dividend. Management pointed to the longer record: “Over the last 12 months, core earnings have exceeded our regular dividend.” Ares Capital also has an estimated $988 million of spillover income, or $1.38 per share. That is taxable income it earned in the past and can still pay out, which gives it a buffer. Leverage is 1.12x debt-to-equity net of cash. Liquidity is about $6 billion, and no more unsecured notes mature in 2026. The company has paid a steady or higher regular dividend for 68 consecutive quarters, and the payout has been $0.48 every quarter since March 2023.

Bull case: Ares Capital is the largest publicly traded business development company (BDC). Its portfolio totals $29.35 billion across 619 companies, and 71% of it is floating rate. The weighted average yield on its debt investments is 10.3%. New senior loan spreads were 20 basis points wider than in late 2025. A new commercial paper program could cut funding costs by 50 to 100 basis points compared with secured borrowings. Analysts’ average target is $20.77.

Risk: Credit quality is slipping. Non-accrual loans rose from 2.1% to 2.4% at cost during the quarter. NAV per share fell to $19.35 from $19.94 at the end of 2025, and $183 million in unrealized losses cut GAAP EPS to $0.24.

Philip Morris International: A Fresh Raise Funded by Smoke-Free Growth Philip Morris’s new annualized dividend of $6.40 works out to a 3.41% forward yield at $187.50. The stock went ex-dividend on October 2, 2026, so anyone buying now will first collect the higher payment in January.

Dividend safety: The new payout matches about 77% of the center of 2026 adjusted EPS guidance, which is $8.26 to $8.41. That level is steep for a typical company but manageable for a tobacco cash machine. Philip Morris expects about $13.5 billion of operating cash flow this year against $1.4 billion to $1.6 billion of capex, and it is buying back no shares. Net debt is $43.1 billion, or 2.35x adjusted EBITDA, and the company is aiming for around 2.0x by year-end. Quarterly payments have continued without a break since 2008, and the payment has risen from $1.17 in 2020 to $1.60 now.

Bull case: Second-quarter revenue grew 10.4% to $11.19 billion, and adjusted EPS of $2.20 beat the $2.05 estimate. International smoke-free revenue rose 14.2%, and VEEV vape shipments jumped 55.1%. The FDA authorized 20 ZYN variants as modified-risk tobacco products, which lets them be marketed as lower risk. Operating cash flow rose 61.0% to $5.49 billion. CEO Jacek Olczak said the company drove “net revenues to over $11 billion for the first time.” Analysts’ average target is $208.13.

Risk: More competition in U.S. oral nicotine is weighing on ZYN sales. Philip Morris also took a $511 million non-cash impairment, and Poland’s flavor ban hits its heated tobacco business.

Five Payouts Backed by Cash Flow All five payouts are supported by a clear source of cash: AbbVie’s immunology drugs, Chevron’s balance sheet, MPLX’s target of 1.3x coverage, Ares Capital’s spillover income and Philip Morris’s growing smoke-free business. Together, they offer a mix of growing dividends and high current income from five different sectors. For the rest of the year, keep an eye on Ares Capital’s non-accruals and MPLX’s second-half project ramp.

Contact [email protected] for any questions or corrections.

With the 10-Year Treasury yield hovering near 5.3%, it might seem like a risky time to buy high-yielding dividend stocks in the financial sector. In this environment, many investors would rather buy a low-risk Treasury or CD instead of a dividend stock.

However, there are still plenty of high-yielding financial stocks that are well-insulated from higher interest rates and Treasury yields. Let's take a look at three of them -- Ares Capital (ARCC +0.24%), Brookfield Asset Management (BAM -0.61%), and Strategy's (MSTR +5.26%) STRF shares (STRF -0.12%) -- and see why they're still worth buying.

Image source: Getty Images.

Ares Capital Ares Capital, the world's largest business development corporation (BDC), finances smaller "middle market" companies that struggle to secure loans from conventional banks. In exchange for taking on that higher risk, it charges higher interest rates.

To reduce its risk, it spreads its $29.3 billion investment portfolio across 619 companies. It also allocates 59% of its portfolio to first-lien secured loans and 4% to second-lien secured loans.

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Like banks, BDCs generally benefit from higher interest rates, which boost their net interest income. But those rates can't jump too high, or they'll adversely impact their portfolio companies. BDCs also must pay out at least 90% of their taxable income as dividends to maintain a lower tax rate. That's why Ares pays a high forward yield of 10%.

Analysts expect Ares' EPS to rise only 1% to $1.93 next year, which will cover its forward dividend rate of $1.92. At $19, its stock looks like a bargain at 10 times next year's earnings. So if you're looking for a simple, rate-resistant income play, Ares checks the right boxes.

Brookfield Asset Management Brookfield Asset Management, one of the world's largest asset managers, was spun off from the financial conglomerate Brookfield Corporation (BN -0.23%) in 2022.

As a stand-alone company, Brookfield Asset Management operates as a "pure play" asset manager that raises the capital for Brookfield Corporation's investments and manages them. It doesn't actually buy or own Brookfield's assets -- it merely holds the rights to manage those properties and all the capital pooled together by its parent company and other investors. That business model also makes it more resistant to higher interest rates than its parent company.

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Brookfield Asset Management is valued by its fee-related earnings (FRE) per share, or the recurring fees that fund its dividends. Its FRE per share rose 22% in 2025, and analysts expect that figure to rise 14%-17% to $2.10-$2.15 per share in 2026.

That should easily cover its forward dividend rate of $2.01 per share, which translates to a forward yield of 4.5%. At $44, it looks reasonably valued at 21 times this year's FRE per share.

Strategy's STRF shares Strategy, the world's largest corporate holder of Bitcoin (BTC +1.31%), issued four classes of preferred stock last year. All four of these stocks pay high dividends, but "Strife" (STRF) -- which was launched last March -- is arguably the safest.

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Strife ranks first in seniority among Strategy's four classes of preferred shares, and it's junior only to its corporate debt. It pays a fixed 10% annual dividend every quarter, and it's cumulative -- which means that any missed payments will accrue and must be repaid with step-up penalties before Strategy can resume its other dividend payments.

Strategy initially issued these preferred shares to fund its Bitcoin purchases, but it also periodically sells its Bitcoin holdings to fund the dividends. So if you're bullish on Bitcoin but also want to earn some extra income from Strategy's Bitcoin hoarding strategy, Strategy's STRF stock -- which has risen 13% since its launch -- might be a hidden high-yield gem.

Ares Capital (ARCC - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.

Over the past month, shares of this private equity firm have returned -4.7%, compared to the Zacks S&P 500 composite's +1% change. During this period, the Zacks Financial - SBIC & Commercial Industry industry, which Ares Capital falls in, has lost 5.2%. The key question now is: What could be the stock's future direction?

While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.

Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.

Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.

Ares Capital is expected to post earnings of $0.48 per share for the current quarter, representing a year-over-year change of -4%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.

For the current fiscal year, the consensus earnings estimate of $1.91 points to a change of -5% from the prior year. Over the last 30 days, this estimate has remained unchanged.

For the next fiscal year, the consensus earnings estimate of $1.94 indicates a change of +2% from what Ares Capital is expected to report a year ago. Over the past month, the estimate has remained unchanged.

Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Ares Capital is rated Zacks Rank #3 (Hold).

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.

In the case of Ares Capital, the consensus sales estimate of $780.31 million for the current quarter points to a year-over-year change of -0.2%. The $3.1 billion and $3.19 billion estimates for the current and next fiscal years indicate changes of +1.7% and +2.6%, respectively.

Last Reported Results and Surprise HistoryAres Capital reported revenues of $768 million in the last reported quarter, representing a year-over-year change of +3.1%. EPS of $0.47 for the same period compares with $0.5 a year ago.

Compared to the Zacks Consensus Estimate of $768.98 million, the reported revenues represent a surprise of -0.13%. The EPS surprise was 0%.

Over the last four quarters, Ares Capital surpassed consensus EPS estimates times. The company topped consensus revenue estimates just once over this period.

ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.

Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.

As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Ares Capital is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Ares Capital. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.

The Federal Reserve just hiked rates for the first time since 2023 as it tries to tamp down persistently high inflation. Inflation is currently running above 3%, higher than the Fed's 2% target. That has most Fed watchers expecting further rate hikes.

Higher rates are a headwind for high-yield dividend stocks. At over 10%, Ares Capital (ARCC +0.37%) is certainly in that category, given that the S&P 500's dividend yield is closer to 1%. Despite that, I'd still buy Ares Capital right now.

Image source: Getty Images.

Why high rates are headwinds for high-yielding stocksThe Fed recently raised the Federal Funds Rate by 25 basis points, moving it from 3.50%-3.75% to 3.75%-4.00%. New York Fed President John Williams has since said that another rate hike this year is a "reasonable expectation." The market is currently pricing in a 25-basis-point increase at the Fed's October meeting, with an even higher probability of a hike at its December meeting.

Rising interest rates have two notable impacts on high-yielding dividend stocks. It increases their borrowing rates. Interest rates on floating-rate debt rise, while it's more expensive to issue new debt to refinance existing borrowing or fund new investments. Higher interest rates will directly impact Ares Capital's balance sheet because $11.8 billion of its $15.9 billion in outstanding debt (74%) was floating-rate at the end of the second quarter. On a positive note, the business development company (BDC) just raised $750 million in notes due in 2033 at a fixed 6.25% rate just before the Fed raised rates, providing it with additional capital.

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The other impact of rising rates is that it makes lower-risk income investments such as government bonds and bank CDs more attractive. That weighs on the value of riskier income investments like high-yield dividend stocks, pushing up their yields to compensate investors for their higher risk profiles. We've seen that with Ares Capital this year as shares are down nearly 10% from their high, pushing its yield above 10%.

Why I'd still buy Ares despite these headwindsWhile Ares Capital has some headwinds from higher rates, they're also a tailwind. At the end of the second quarter, 71% of Ares' $29.3 billion investment portfolio was in floating-rate debt. That means rising rates will boost the interest income generated from those holdings, more than offsetting the increased interest expenses on its debt. The company has focused on investing in floating-rate debt in recent quarters. Of its $2.6 billion of new investment commitments in the second quarter, 94% was floating rate debt securities.

Ares Capital also has an exceptional record of investing during periods of rising interest rates. The clearest evidence of this is its 17-year record of paying a stable-to-growing regular dividend, which includes several periods of interest rate hikes. Its total dividend outlay (regular and supplemental) has historically risen during periods when the Federal Reserve is increasing rates:

ARCC Dividend data by YCharts

I'd capitalize on the rate-driven declineRising rates will likely continue to put downward pressure on Ares stock price, driving up its yield. I think that will make an already solid buying opportunity even better. While there's no guarantee that Ares Capital will maintain its record of dividend stability and growth during the current rate hike cycle, it's in a strong position to capitalize on higher rates, as it has in the past.

Six funds, fixed weights, and a blended yield that keeps monthly checks arriving even when the Fed cuts rates or volatility dries up. The math behind funding a $75,000 annual draw starts with one uncomfortable number most retirees underestimate.

Representative Pete Sessions (Republican-Texas) recently sold shares of Apple Inc. (NASDAQ:AAPL). In a filing disclosed on September 22nd, the Representative disclosed that they had sold between $100,001 and $250,000 in Apple stock on September 22nd. The trade occurred in the Representative’s “IRA ONE” account.

Representative Pete Sessions also recently made the following trade(s):

Sold $15,001 – $50,000 in shares of AbbVie (NYSE:ABBV) on 9/14/2026. Sold $15,001 – $50,000 in shares of Alphabet (NASDAQ:GOOGL) on 9/14/2026. Sold $1,001 – $15,000 in shares of Ares Capital (NASDAQ:ARCC) on 7/24/2026. Apple Stock Performance AAPL stock opened at $337.02 on Thursday. The company has a quick ratio of 0.93, a current ratio of 1.00 and a debt-to-equity ratio of 0.66. Apple Inc. has a twelve month low of $243.42 and a twelve month high of $345.34. The business’s fifty day moving average is $321.36 and its 200-day moving average is $296.51. The company has a market cap of $4.92 trillion, a P/E ratio of 38.65, a price-to-earnings-growth ratio of 2.95 and a beta of 1.08.

Apple (NASDAQ:AAPL – Get Free Report) last released its quarterly earnings data on Thursday, July 30th. The iPhone maker reported $2.02 EPS for the quarter, beating analysts’ consensus estimates of $1.89 by $0.13. Apple had a return on equity of 135.46% and a net margin of 27.62%.The business had revenue of $109.42 billion during the quarter, compared to the consensus estimate of $109.04 billion. During the same quarter in the prior year, the company posted $1.57 earnings per share. The firm’s revenue was up 16.4% on a year-over-year basis. Equities research analysts forecast that Apple Inc. will post 8.74 EPS for the current year. Apple Dividend Announcement The firm also recently disclosed a quarterly dividend, which was paid on Thursday, August 13th. Investors of record on Monday, August 10th were issued a $0.27 dividend. This represents a $1.08 annualized dividend and a yield of 0.3%. The ex-dividend date was Monday, August 10th. Apple’s dividend payout ratio is currently 12.39%.

Institutional Inflows and Outflows A number of institutional investors have recently bought and sold shares of the stock. QRG Capital Management Inc. grew its position in Apple by 10.5% in the second quarter. QRG Capital Management Inc. now owns 2,659,362 shares of the iPhone maker’s stock valued at $771,119,000 after purchasing an additional 252,894 shares in the last quarter. Envestnet Portfolio Solutions Inc. boosted its stake in shares of Apple by 10.7% in the second quarter. Envestnet Portfolio Solutions Inc. now owns 693,928 shares of the iPhone maker’s stock valued at $201,044,000 after buying an additional 67,072 shares during the period. Envestnet Asset Management Inc. raised its stake in Apple by 9.8% in the second quarter. Envestnet Asset Management Inc. now owns 14,628,132 shares of the iPhone maker’s stock valued at $4,249,340,000 after purchasing an additional 1,304,406 shares in the last quarter. State Street Corp grew its stake in Apple by 4.7% during the second quarter. State Street Corp now owns 630,662,494 shares of the iPhone maker’s stock worth $182,897,769,000 after buying an additional 28,321,085 shares in the last quarter. Finally, Silicon Valley Capital Partners increased its holdings in Apple by 0.8% in the 2nd quarter. Silicon Valley Capital Partners now owns 205,570 shares of the iPhone maker’s stock valued at $59,484,000 after buying an additional 1,555 shares during the period. Institutional investors own 67.73% of the company’s stock.

Insider Buying and Selling at Apple In related news, SVP Jennifer Newstead sold 1,438 shares of the stock in a transaction that occurred on Tuesday, September 15th. The shares were sold at an average price of $330.19, for a total transaction of $474,813.22. Following the sale, the senior vice president owned 32,914 shares in the company, valued at approximately $10,867,873.66. This trade represents a 4.19% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last ninety days, insiders have sold 8,632 shares of company stock worth $2,719,955. Corporate insiders own 0.06% of the company’s stock.

Key Headlines Impacting Apple Here are the key news stories impacting Apple this week:

Positive Sentiment: Bank of America reaffirmed its Buy rating and assigned a $370 price target, implying further upside. The firm highlighted improving iPhone 18 Pro Max availability trends, while premium demand remains relatively resilient. BofA Sends Stark Message to Apple Stock Investors on iPhone 18 Positive Sentiment: Apple’s new M6 Mac mini and M5 Mac Studio are being marketed as lower-cost alternatives to cloud-based AI infrastructure, potentially expanding Apple’s enterprise opportunity. Their ability to run large AI models locally could create a new hardware growth driver. With new Macs, Apple aims to take on Microsoft and Nvidia Positive Sentiment: Reports that Apple is developing a screenless fitness tracker to compete with Whoop and Oura point to potential long-term expansion in health and wearables, although a launch may not occur until 2028. Apple could take on Whoop with a new fitness tracker Wall Street Analysts Forecast Growth A number of analysts have recently commented on the company. Royal Bank Of Canada set a $365.00 price target on Apple in a research note on Wednesday, July 15th. JPMorgan Chase & Co. restated a “buy” rating on shares of Apple in a report on Sunday, September 13th. Phillip Securities increased their target price on shares of Apple from $290.00 to $300.00 and gave the stock a “neutral” rating in a report on Monday, September 14th. Needham & Company LLC reissued a “hold” rating on shares of Apple in a research report on Tuesday, September 8th. Finally, Piper Sandler began coverage on shares of Apple in a report on Monday, August 17th. They issued an “overweight” rating for the company. One equities research analyst has rated the stock with a Strong Buy rating, twenty-six have assigned a Buy rating, thirteen have given a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, Apple currently has a consensus rating of “Moderate Buy” and a consensus price target of $340.14.

Read Our Latest Stock Analysis on Apple

About Representative Sessions Pete Sessions (Republican Party) is a member of the U.S. House, representing Texas’ 17th Congressional District. He assumed office on January 3, 2021. His current term ends on January 3, 2027.

Sessions (Republican Party) ran for re-election to the U.S. House to represent Texas’ 17th Congressional District. He won in the general election on November 5, 2024.

On October 20, 2023, Sessions announced he was running to replace Kevin McCarthy (R) as speaker of the U.S. House in the 118th Congress. Sessions lost the first round of nomination voting on October 24, 2023.

Pete Sessions was born and lives in Waco, Texas. Sessions earned a B.S. from Southwestern University in 1978. Sessions’ career experience includes working as an executive with AT&T.

Apple Company Profile (Get Free Report)

Apple Inc is a technology company that designs, develops and markets consumer electronics, software and digital services. Its principal products include the iPhone, Mac computers, iPad tablets, Apple Watch, AirPods and other accessories. The company also develops operating systems and applications that support its hardware products.

Apple’s services business includes the App Store, Apple Music, Apple TV, Apple Arcade, Apple Fitness+, Apple News+, Apple Pay and iCloud. These services provide digital content, payments, cloud storage and subscription offerings across the company’s ecosystem of devices.

Founded in 1976, Apple is headquartered in Cupertino, California, and serves consumers, businesses, educational institutions and government customers worldwide.

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The direct lending space is not a monolith; disciplined underwriting separates top-tier managers from the pack. Ares Capital has operated as an upper-middle-market direct lending flagship for over 22 years, navigating the 2008 Great Financial Crisis, the 2015–2016 energy downturn, and the 2020 pandemic. Over its two-decade operating history, ARCC's net realized gains from equity kickers and structuring fees have consistently exceeded gross loan losses, protecting long-term book value.

Ares Capital (ARCC - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.

Shares of this private equity firm have returned -0.7% over the past month versus the Zacks S&P 500 composite's -1.3% change. The Zacks Financial - SBIC & Commercial Industry industry, to which Ares Capital belongs, has lost 0.4% over this period. Now the key question is: Where could the stock be headed in the near term?

While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.

Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.

We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For the current quarter, Ares Capital is expected to post earnings of $0.48 per share, indicating a change of -4% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.3% over the last 30 days.

For the current fiscal year, the consensus earnings estimate of $1.91 points to a change of -5% from the prior year. Over the last 30 days, this estimate has remained unchanged.

For the next fiscal year, the consensus earnings estimate of $1.94 indicates a change of +2% from what Ares Capital is expected to report a year ago. Over the past month, the estimate has remained unchanged.

With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Ares Capital.

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.

For Ares Capital, the consensus sales estimate for the current quarter of $780.31 million indicates a year-over-year change of -0.2%. For the current and next fiscal years, $3.1 billion and $3.19 billion estimates indicate +1.7% and +2.6% changes, respectively.

Last Reported Results and Surprise HistoryAres Capital reported revenues of $768 million in the last reported quarter, representing a year-over-year change of +3.1%. EPS of $0.47 for the same period compares with $0.5 a year ago.

Compared to the Zacks Consensus Estimate of $768.98 million, the reported revenues represent a surprise of -0.13%. The EPS surprise was 0%.

Over the last four quarters, Ares Capital surpassed consensus EPS estimates times. The company topped consensus revenue estimates just once over this period.

ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.

Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.

As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Ares Capital is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Ares Capital. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.

Baby Boomers chasing income have learned the hard way that a double-digit yield can signal a collapsing business just as often as a generous payout. These five high-yield picks survive every red flag on the yield trap checklist, and the…

Investors love dividend stocks because they provide dependable passive income streams and an excellent opportunity for solid total return. Total return includes interest, capital gains, dividends, and distributions realized over time. In other words, the total return on an investment or portfolio consists of income and stock appreciation. At 24/7 Wall St., we have focused on dividend stocks for 20 years because, despite the stock market’s ups and downs, many people need reliable passive income streams to supplement their income from employment or other sources such as Social Security and pensions.

Investors, especially Boomers, looking to add as much passive income as possible to Social Security or pension checks, are often enticed into buying companies that pay dividends, sometimes more than 10%, 15%, or higher. In many cases, they end up getting burned by what Wall Street calls “yield traps.” A yield trap appears when a stock’s dividend yield looks unusually high only because the share price has collapsed amid a failing business or an unsustainable payout ratio.

We screened our 24/7 Wall St. high-yield research database. We found five companies below that avoid that risk, as recurring operating cash flow, strong balance sheets, and durable underlying businesses fully support their large distributions. The five stocks we found are all companies we have covered for years here at 24/7 Wall St., and are large-cap stocks and partnerships that Wall Street analysts and income professionals widely consider safe from being yield traps. Plus, all five are rated Buy by top Wall Street firms that we cover.

Ares Capital Ares Capital (NASDAQ:ARCC | ARCC Price Prediction) specializes in providing financing solutions for the middle market, and with eight analysts rating it a Buy and a 9.64% dividend yield, it is a solid idea now. This high-yielding business development company (BDC) specializes in acquisitions, recapitalizations, mezzanine debt, restructurings, rescue financing, and leveraged buyout transactions for middle-market companies. It is widely considered one of the highest-quality BDCs due to its massive scale and defensive track record through multiple economic cycles. The company has a long history of regular payouts and supplemental distributions since its 2004 market entry.

Yields near 10% are usually a warning sign, but Ares Capital is an exception. As a leading private-credit manager, it concentrates on first-lien senior secured loans, so it sits at the front of the repayment line if a borrower defaults. Net investment income has typically covered the regular dividend, and excess earnings have at times funded extra year-end distributions.

It also makes growth capital and general refinancing. It prefers to invest in companies in basic and growth manufacturing, business services, consumer products, healthcare products and services, and information technology.

The fund will also consider investments in industries such as:

Restaurants Retail Oil and gas Technology It focuses on investments in the Northeast, Mid-Atlantic, Southeast, and Southwest regions from its New York office; the Midwest region from its Chicago office; and the Western region from its Los Angeles office.

The fund typically invests between $20 million and $200 million, with a maximum of $400 million, in companies with annual EBITDA between $10 million and $250 million. It makes debt investments between $10 million and $100 million.

The fund invests through:

Revolvers First-lien loans Warrants Unitranche structures Second-lien loans Mezzanine debt Private high yield Junior Capital Subordinated debt Non-control preferred and common equity The fund also selectively considers third-party-led senior and subordinated debt financings and opportunistically acquires stressed and discounted debt positions.

Truist Financial has a Buy rating with a $21 target.

Energy Transfer Energy Transfer (NYSE:ET) is one of North America’s largest and most diversified midstream energy companies. This top master limited partnership is a safe option for investors seeking energy exposure and income, as the company pays a 6.27% distribution yield. Energy Transfer owns and operates one of the largest and most diversified portfolios of energy assets in the United States, with a strategic footprint across all major domestic production basins. The company blew out second-quarter earnings and appears poised to reach new highs.

The company functions as an energy tollbooth, moving natural gas and liquids across thousands of miles of infrastructure. Because it charges by volume rather than relying directly on volatile oil and gas prices, its cash flow is highly predictable.

The company is a publicly traded limited partnership with core operations that include:

Complementary natural gas midstream, intrastate, and interstate transportation and storage assets Crude oil, natural gas liquids (NGLs), and refined product transportation and terminalling assets NGL fractionation Various acquisition and marketing assets Following the acquisition of Enable Partners in December 2021, Energy Transfer owns and operates over 114,000 miles of pipelines and related assets in 41 states, spanning all major U.S. producing regions and markets. This further solidifies its leadership position in the midstream sector.

Through its ownership of Energy Transfer Operating, formerly known as Energy Transfer Partners, the company also owns Lake Charles LNG; the general partner interests, the incentive distribution rights, and 28.5 million standard units of Sunoco (NYSE: SUN); and the public partnership interests and 39.7 million standard units of USA Compression Partners (NYSE: USAC).

J.P. Morgan has an Overweight rating with a $25 target price.

Enterprise Products Partners Another top midstream giant, this American midstream natural gas and crude oil pipeline company is headquartered in Houston, Texas. Enterprise Products Partners (NYSE:EPD) is one of the most extensive publicly traded energy partnerships and pays a very reliable 5.60% dividend.

The company’s debt-to-EBITDA ratio ranges from 3.1x to 3.4x, which is moderate for a midstream energy company, and its interest coverage ratio is 5x. Enterprise Products Partners generates strong free cash flow, with operating cash flow of about $8.8 billion, resulting in about $4.2 billion in free cash flow annually after deducting capital expenditures. Another significant benefit for shareholders is that most corporate debt is fixed-rate, limiting the risk of rising interest rates.

This company has a strong track record in corporate America, raising its distribution every year for nearly three decades. It retains billions in organic free cash flow after paying investors to self-fund its growth projects, which prevents it from drowning in high-interest debt.

Enterprise Products Partners provides various midstream energy services, including:

Gathering Processing Transporting and storing natural gas, NGLs, and fractionation Import and export terminalling Offshore production platform services The company has four reportable business segments:

Natural Gas Pipelines and Services NGL Pipelines and Services Petrochemical Services Crude Oil Pipelines and Services One reason many analysts like the stock might be its distribution coverage ratio, which is well above 1x, making it relatively less risky among the MLPs.

UBS has a Buy rating and a $45 target price.

Verizon Verizon Communications (NYSE:VZ) is an American multinational telecommunications company that continues to offer tremendous value. It trades at 9.13 times its estimated 2026 earnings and pays a 5.52% dividend. Verizon provides a range of communications, technology, information, and entertainment products and services to consumers, businesses, and government entities worldwide.

Verizon’s trailing 12-month interest coverage ratio is 4.6× to 5×, providing ample cushion for dividend payments. With a very predictable revenue stream from telecom services, the company has less exposure to commodity cycles. In addition, its scale helps with financing and absorbing shocks. Public reports indicate that management has increased the dividend for 20 consecutive years and expects at least $21.5 billion in free cash flow this year.

The company is often mistakenly labeled a value trap because its revenue growth is slow. However, its massive customer base treats cellular data like a utility bill, ensuring a steady stream of defensive cash flow, and its comfortable dividend coverage ratio makes a payout cut highly unlikely.

It operates in two segments. The Consumer segment provides wireless services across the United States through Verizon and TracFone networks, as well as through wholesale and other arrangements. It also provides fixed wireless access (FWA) broadband through its wireless networks and related equipment and devices, such as:

Smartphones Tablets Smartwatches Other wireless-enabled connected devices The segment also offers wireline services in the Mid-Atlantic and northeastern United States through its fiber-optic network, Verizon Fios product portfolio, and copper-based network.

The Business segment provides wireless and wireline communications services and products, including:

FWA broadband Data Video and conferencing Corporate networking Security and managed network Local and long-distance voice Network access services to deliver various IoT services and products to businesses, government customers, and wireless and wireline carriers in the United States and internationally.

TD Cowen has a Buy rating with a $56 target price.

VICI Properties VICI Properties (NYSE:VICI) is a New York City-based real estate investment trust that specializes in casino and entertainment properties. It offers a stellar dividend yield of 7.02% and is one of Wall Street’s top picks in the net lease group. It suits more conservative investors seeking gaming exposure and a substantial dividend. The stock is frequently flagged, alongside other stocks in this post, in dividend screens as a “safer” S&P 500 Dividend Dog with an attractive yield backed by long-term triple-net leases. Its anchor tenants operate massive cash-flow engines and have historically paid rent through all economic cycles. Its triple-net lease structure forces tenants to pay all maintenance, insurance, and taxes, shielding the company from overhead inflation.

VICI Properties has one of the largest portfolios of market-leading gaming, hospitality, and entertainment destinations, including three iconic entertainment facilities on the Las Vegas Strip:

Caesars Palace Las Vegas MGM Grand The Venetian Resort Las Vegas VICI Properties owns 93 experiential assets across a geographically diverse portfolio of 54 gaming properties and 39 other experiential properties across the United States and Canada. The portfolio comprises about 127 million square feet and includes about 60,300 hotel rooms, plus over 500 restaurants, bars, nightclubs, and sportsbooks. Gaming revenue has proven remarkably resilient in recent downturns, and its triple-net lease structure means it collects rent regardless of swings in tenant profitability.

VICI Properties has a growing array of real estate and financing partnerships with leading operators in other experiential sectors, including:

Bowlero Cabot Canyon Ranch Chelsea Piers Great Wolf Resorts Homefield Kalahari Resorts VICI Properties also owns four championship golf courses and 33 acres of undeveloped or underdeveloped land adjacent to the Las Vegas Strip.

Cantor Fitzgerald has an Overweight rating with a $32 price objective.

Contact [email protected] for any questions or corrections.

Ares Capital remains attractively valued at book value, offering a 9.7% dividend yield and trading at a 10.4x forward P/E. ARCC's portfolio is diversified, with mostly senior secured loans and limited single-borrower exposure, supporting portfolio resilience. Recent results show stable core EPS, healthy ROE, and improving lending terms, with wider spreads and higher upfront fees.