3 Ultra-High-Yield Dividend Stocks I'm Buying for Decades of Passive Income

Core Viewpoint - The article highlights three ultra-high-yield dividend stocks that are considered reliable sources of passive income for long-term investors. Group 1: Ares Capital - Ares Capital (ARCC) offers a dividend yield of over 9.2%, as it is required to return at least 90% of its income to shareholders to maintain tax exemptions [2] - The company has a strong track record of 15 years of steady to growing dividends and is expected to continue generating strong free cash flow [2] - Ares Capital has outperformed the S&P 500 since its public trading began in October 2004, with a cumulative total return over 65% higher than the index [3] Group 2: Enbridge - Enbridge (ENB) provides a dividend yield of nearly 7.4% and has increased its dividend for 29 consecutive years [4] - The company's distributable cash flow payout ratio is between 60% and 70%, with 98% of cash flow generated from reliable contracted assets [4] - Enbridge has multiple growth drivers, including pipeline expansions and revenue escalators, which support its ability to maintain and grow dividends [4] Group 3: Verizon Communications - Verizon Communications (VZ) has a dividend yield over 6.6% and has increased its dividend for 17 consecutive years [5] - The company generated $8.5 billion in free cash flow in the first half of 2024, an increase from$8 billion in the same period of 2023, indicating strong cash flow generation [5] - Verizon's management emphasizes the importance of dividends and aims to manage its payout ratio to support continued dividend growth [5]