3 Ultra-High-Yield Dividend Stocks to Buy Right Now That Are Dirt Cheap

Core Viewpoint - The current market downturn presents opportunities for income investors due to higher dividend yields and lower valuations across several stocks Group 1: Ares Capital - Ares Capital has a forward dividend yield of 9.42% and trades at a low forward earnings multiple of 9.6, making it attractive for income investors [2] - Despite being affected by market volatility, Ares Capital's shares are down by a double-digit percentage from their peak earlier this year [2] - The company has delivered approximately 70% greater total returns than the S&P 500 since its IPO in 2004, indicating strong long-term performance potential [4] Group 2: Enterprise Products Partners - Enterprise Products Partners offers a forward distribution yield exceeding 6.8% and has increased its distribution for 26 consecutive years [5] - The company trades at 10.3 times forward earnings, below the S&P 500 energy sector average of 13.4, suggesting a favorable valuation [6] - Enterprise's revenue is largely insulated from commodity price fluctuations, making it more stable during economic downturns [7] - Approximately 90% of the company's long-term contracts include inflation-based escalation provisions, providing additional revenue protection [8] Group 3: Pfizer - Pfizer's forward dividend yield is 7.72%, one of the highest since the Great Recession, with shares trading at 7.5 times forward earnings [9] - The stock has faced challenges, including declining COVID-19 vaccine sales and a looming patent cliff, but it also has several newer products with growing sales [10][11] - Pfizer has announced its 16th consecutive annual dividend increase, indicating confidence in maintaining its dividend policy [12] - Wall Street's consensus 12-month price target suggests nearly 35% upside potential for the stock [12]