Inside Financial News
No Result
View All Result
Monday, July 21, 2025
  • Home
  • News
    • Precious Metals
    • Battery Metals
    • Energy
    • Special Situation
    • Tech
    • Biotech
    • Crypto
  • Expert Opinions
    • Economy
    • Business
    • Markets
  • Contact Us
×

  • Home
  • News
    • Precious Metals
    • Battery Metals
    • Energy
    • Special Situation
    • Tech
    • Biotech
    • Crypto
  • Expert Opinions
    • Economy
    • Business
    • Markets
  • Contact Us
No Result
View All Result
Inside Financial News
No Result
View All Result
Home News Battery Metals

2 Ultra-High-Yield Dividend Stocks to Buy Now for a Lifetime of Passive Income

by Inside Financial
October 21, 2024
in Battery Metals, Biotech, Crypto, Energy, Gadget, Markets, Politics, Precious Metals, Real Estate, Startup, Tech
0
152
SHARES
1.9k
VIEWS
Share on FacebookShare on Twitter

A buoyant stock market that keeps reaching new heights is making it tougher to find high-yield dividend payers. The S&P 500 reached a new all-time high on Oct 18. At recent prices, the average dividend-paying stock in the benchmark index offers an uninspiring 1.3% dividend yield.

The average dividend payer in the S&P 500 index might be unappealing, but there are underappreciated businesses with ultra high dividend yields waiting for income-seeking investors to scoop them up. Ares Capital (NASDAQ: ARCC), and EPR Properties (NYSE: EPR) offer yields above 8% at recent prices.

1. Ares Capital

Ares Capital is the world’s largest publicly traded business development company, or BDC. These specialty financiers fill the gap left by U.S. banks that have been dialing back their direct lending operations for decades. They are also popular with income-seeking investors because they can legally avoid paying income taxes by distributing nearly all their profits to shareholders as dividends.

This BDC’s quarterly dividend payment hasn’t risen in a straight line, but it is up by 26% over the past 10 years. At recent prices, it offers an 8.9% yield and confidence that comes with plenty of diversification.

At the end of June, there were 525 companies in Ares Capital’s portfolio. The company it’s most exposed to is responsible for just 1.8% of the total portfolio. Diversification and an enviable track record earned the BDC an investment-grade credit rating that recently allowed it to sell $850 million worth of five-year notes with a low 5.95% coupon.

The midsize businesses Ares lends to are willing to borrow at higher rates than you might expect. The average yield it received from the debt securities in its portfolio was 12.2% in the second quarter. This is even more encouraging when you consider half of its assets are first-lien senior secured loans, which are first to be repaid if there’s a bankruptcy.

Ares Capital has so much room to grow that buying shares now and never letting go looks like the right move. Its portfolio has swelled to nearly $25 billion but management estimates the current demand for mid-market capital at about $5.4 trillion.

2. EPR Properties

EPR Properties is a real estate investment trust (REIT) that offers a big 9.3% dividend yield at recent prices. The stock has been under pressure because it looks like its recent recovery is losing steam.

This REIT specializes in properties that bring people together in large groups. The stock price has been under pressure because underperforming theaters made up 37% of its total portfolio at the end of June. Investors considering EPR Properties will be glad to know that the theater segment was responsible for just 0.3% of total investment spending during the first six months of 2024.

Increasingly popular eat-and-play facilities like Top Golf make up a large and growing share of EPR’s portfolio. While total revenue has declined slightly, a portfolio leaning further toward non-theater tenants is pushing up profits.

EPR Funds from Operations (TTM) Chart

EPR Properties abruptly stopped paying dividends in the spring of 2020 while the COVID-19 pandemic kept us from joining together in large groups. It restarted its monthly dividend program at a reduced level in July 2021.

Since restarting payments in 2021, EPR Properties has raised its dividend by 14% and it’s in a position to raise it a lot further. Funds from operations (FFO) is a proxy for earnings used to evaluate REITs like EPR properties. This year, management expects adjusted FFO to land in a range between $4.76 and $4.96 per share, which is more than enough to support and raise a payout currently set at an annualized $3.42 per share.

The pandemic taught investors that nobody should put too many eggs in EPR’s basket, but its ability to survive the worst of the challenge suggests it can survive all kinds of unforeseen issues. Adding some beaten-down shares to a diverse portfolio now could be a great way to pump up your passive income stream over the long run.

Should you invest $1,000 in Ares Capital right now?

Before you buy stock in Ares Capital, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Ares Capital wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $845,679!*

Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*.

See the 10 stocks »

*Stock Advisor returns as of October 14, 2024

Cory Renauer has positions in Ares Capital. The Motley Fool recommends EPR Properties. The Motley Fool has a disclosure policy.

2 Ultra-High-Yield Dividend Stocks to Buy Now for a Lifetime of Passive Income was originally published by The Motley Fool

Source link

Previous Post

Bain-Backed 360 One's Co-CEO Taparia to depart amid wealth management boom – Business Standard

Next Post

Orionid meteor shower to light up skies overnight – but the moon may limit your view | Science & Tech News

Next Post
Orionid meteor shower to light up skies overnight – but the moon may limit your view | Science & Tech News

Orionid meteor shower to light up skies overnight - but the moon may limit your view | Science & Tech News

Please login to join discussion

Twitter Feeds

  • Trending
  • Comments
  • Latest

Institutional Bitcoin Adoption Accelerates: Hyper Bit Technologies Steps Into the Spotlight

June 23, 2025

Mining’s “Tom Brady” – Bob Dickinson Fuels Copper & Gold Discovery

January 31, 2025
Lithium M&A Continues with Rio Tinto’s $6.7 Billion Arcadium Lithium Acquisition – Lithium Explorers and Developers begin rallying

Lithium M&A Continues with Rio Tinto’s $6.7 Billion Arcadium Acquisition and Piedment Sayona $623 Million Merger – Lithium Explorers and Developers begin rallying

November 21, 2024

Billions are being committed to Hydrogen development in Canada and the USA with Hydrogen explorers and developers starting to rally – 4 Stocks that could benefit significantly

January 12, 2025

High Street Retailers Pin Hopes On Discount Splurge In Black Friday Fever

0

UK Faces Two Decades of No Earnings Growth and More Austerity

0

High-Speed Traders In Search of New Markets Jump Into Bitcoin

0

Brexit Has Created A Political Climate No Budget Can Fix

0

Bitcoin All-Time High: Hyper Bit Technologies Rides Wave of Institutional Crypto Momentum

July 16, 2025

Institutional Bitcoin Adoption Accelerates: Hyper Bit Technologies Steps Into the Spotlight

June 23, 2025

Uranium Powers Up: Meta’s Nuclear Deal Sparks New Era for AI and Energy Security

June 23, 2025
Crypto’s Wild Ride and the Crypto Miners that are the backbone of an industry

Crypto’s Wild Ride and the Crypto Miners that are the backbone of an industry

May 22, 2025

Recent News

Bitcoin All-Time High: Hyper Bit Technologies Rides Wave of Institutional Crypto Momentum

July 16, 2025

Institutional Bitcoin Adoption Accelerates: Hyper Bit Technologies Steps Into the Spotlight

June 23, 2025

Categories

  • Acquisition
  • ATH
  • Aviator
  • Battery Metals
  • Biotech
  • Bitcoin
  • BTC
  • Business
  • Copper
  • Crypto
  • Economy
  • Energy
  • Expert Opinions
  • Finance News
  • Gadget
  • Gold
  • Lithium
  • Markets
  • Mining
  • News
  • Politics
  • Precious Metals
  • Real Estate
  • Special Situation
  • Startup
  • Stocks News
  • Tech
  • Tech
  • Uncategorized

Site Navigation

  • Home
  • Advertisement
  • Contact Us
  • Privacy & Policy
  • Other Links
Inside Financial News

We bring you the best website that perfect for news, magazine, personal blog, etc. Check our landing page for details.

© 2025 Inside Financial News

No Result
View All Result
  • Home
  • News
    • Precious Metals
    • Battery Metals
    • Energy
    • Special Situation
    • Tech
    • Biotech
    • Crypto
  • Expert Opinions
    • Economy
    • Business
    • Markets
  • Contact Us

© 2025 Inside Financial News

Subscribe Now For A Chance To Win Big!