I often wish the “simple button” in the Staples commercial years ago was real. This will make investing easier.
Unfortunately, there are no easy buttons in real life. However, if you are an income investor, there is a strategy that comes close. Investing $10,000 in each of these five ultra-high-yield dividend stocks could generate more than $3,700 in passive income by 2026.
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Purchase $10,000 worth of Ares Capital(NASDAQ:ARCC) The stock should earn you close to $940 in dividend income this year. Business Development Corporation (BDC) offers a generous dividend yield of approximately 9.4%.
Is such a high yield a cause for concern? I don’t think so. Ares Capital has maintained or increased its dividend for 65 consecutive quarters. In my opinion, this trend should continue. CEO Kurt Schnabel noted on the company’s third-quarter earnings call that his team is seeing a “healthier market backdrop” with an accelerated pace of deal reviews.
Midstream energy stocks tend to offer particularly attractive dividend yields. Energy TransferLP(NYSE: ET) Its forward distribution yield is 7.6%, ranking among the best. An initial investment of $10,000 in this limited partnership (LP) will earn you at least $760 in passive income in 2026.
I think Energy Transfer’s distribution is rock solid. U.S. demand for electricity is growing, driven in part by the rapid expansion of data centers hosting artificial intelligence applications. Energy Transfer’s 105,000 miles of natural gas pipelines and 236 billion cubic feet of natural gas storage facilities position LP well-positioned to help utilities meet this demand.
Which large-cap healthcare stock has the highest dividend yield? Pfizer(NYSE: PFE). The big drug maker’s forward dividend yield is currently close to 6.9%. At this level, purchasing $10,000 worth of Pfizer stock would generate nearly $690 in passive income in 2026.
Granted, Pfizer’s high dividend payout ratio of 99.4% does seem concerning at first glance. However, the company continues to generate enough free cash flow to avoid a dividend cut. Pfizer’s management team has also been adamant that it plans to maintain and grow its dividend over time.
I don’t think Pfizer’s patent cliff will jeopardize the dividend. While the company does face losing exclusivity on several of its best-selling drugs in the coming years, it also has a strong pipeline of new products that should largely offset expected revenue declines from drugs that lose patent protection.
Invest $10,000 Verizon Communications(NYSE: VZ) Your passive income should increase by about $700 this year. The telecom giant’s forward dividend yield is just under 7%.
In September 2025, Verizon announced its 19th consecutive annual dividend increase. The company’s free cash flow is growing strongly. New CEO Dan Schulman has pledged to make “positive changes” to Verizon’s culture, cost structure and finances. I expect this move will further strengthen the company’s already attractive dividend.
Buying the first four stocks, worth $10,000 each, could generate a total of $3,090 in passive income by 2026. Invest another $10,000 Weixi Real Estate(NYSE:VICI) Since Vici’s forward dividend yield is nearly 6.5%, the total dividend is expected to be over $3,700.
As a real estate investment trust (REIT), Vici Properties is required to return at least 90% of its profits to shareholders as dividends. For the company, making a healthy profit is not a problem. Vici has one of the largest portfolios of gaming, entertainment, hospitality, leisure and wellness destinations. Its properties include three of the most famous casino resorts on the Las Vegas Strip – Caesars Palace Las Vegas (owned by Caesars Entertainment(NASDAQ: CZR)), MGM Resorts‘ (NYSE:MGM) The MGM Grand and the Venetian Resort in Las Vegas.
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Keith Speights holds positions at Ares Capital, Energy Transfer, Pfizer and Verizon Communications. The Motley Fool owns and recommends Ares Capital and Pfizer. The Motley Fool recommends Verizon Communications and Vici Properties. The Motley Fool has a disclosure policy.
Investing $10,000 in each of these 5 ultra-high-yield dividend stocks could generate more than $3,700 in passive income in 2026 Originally posted by Motley Fool
