Matt DiLallo, The Motley Fool
Sun, June 28, 2026 astatine 2:20 PM CDT 5 min read
Most stocks don't connection precise appealing dividends these days, with the output connected the S&P 500 adjacent a multi-decade debased astatine astir 1%. Investors seeking a higher output often request to instrumentality connected much risk, including the greater likelihood of a aboriginal dividend cut.
However, determination are immoderate lower-risk, higher-yielding concern options retired determination if you cognize wherever to look. Here are 3 companies yielding implicit 8%. Those precocious yields could alteration investors to crook $1,000 into a lucrative passive income watercourse that could past a lifetime.
Missed Nvidia successful 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" awesome flashed for a little-known chipmaker called Nvidia. For the archetypal clip successful years, that aforesaid "Total Conviction" awesome is flashing for a institution 1/100th the size of Nvidia. Continue »
Starwood Property Trust
Starwood Property Trust (NYSE: STWD) is simply a existent property concern spot (REIT). These entities indispensable administer astatine slightest 90% of their taxable income to investors to comply with IRS regulations. As a result, astir REITs person higher yields. Starwood's is presently astir 11.5%. At that rate, a $1,000 concern would make $115 successful yearly dividend income.
The REIT has ne'er chopped its dividend since its 2010 IPO and has maintained its existent outgo level since 2014. One of the keys driving Starwood's dividend durability is its diversification. The owe REIT invests successful commercialized existent estate-backed loans (52% of its portfolio), infrastructure loans (10%), residential loans (8%), and respective different assets (10%). It besides has a increasing portfolio of owned properties (20%).
Starwood's latest diversification determination was the acquisition of the net-lease existent property level Fundamental Income Properties for $2.2 cardinal past year. It owns an expandable portfolio of properties secured by semipermanent leases (a 17-year weighted-average lease word and 2.2% mean yearly rent escalations). This level volition supply Starwood steadily rising income to enactment its high-yielding dividend.
Main Street Capital
Main Street Capital (NYSE: MAIN) is simply a concern improvement institution (BDC). Like REITs, BDCs indispensable administer astatine slightest 90% of their taxable income to comply with IRS regulations. As a result, they typically connection precocious yields.
Main Street meets this request by paying 2 dividends. The BDC pays a monthly dividend acceptable astatine a sustainable level. As a result, Main Street has ne'er reduced its monthly dividend. Instead, it has accrued this outgo 160% since its 2007 IPO, including for the past 12 quarters successful a row. Additionally, Main Street periodically pays supplemental quarterly dividends to scope its required payout ratio. It has paid a supplemental dividend for 19 consecutive quarters. At the existent annualized complaint of these 2 payments, Main Street yields much than 8.5% astatine its caller stock price.

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