Ares Capital(ARCC) The Motley Fool·2025-05-01 07:45Core Viewpoint - The article discusses three ultra-high-yield dividend stocks that investors should consider, highlighting their strong performance and growth potential in the current market environment. Group 1: Ares Capital - Ares Capital has a forward yield of 9.3% and has maintained stable or growing payouts for 15 consecutive years [3][5] - The company has the highest regular dividend growth over the last 10 years among externally managed business development companies with a market cap over 3 trillion opportunity, with an additional 1 billion [4] - The company is well-positioned to capture market share, being the largest publicly traded business development company with a strong balance sheet and deep industry relationships [5] - Concerns regarding the CEO transition are mitigated by the new CEO's extensive experience within the company and industry [6] Group 2: Enterprise Products Partners - Enterprise Products Partners offers a forward yield of 6.9% and has increased its distribution for 26 consecutive years [7] - The company has demonstrated resilience in its cash flows during economic downturns, including the Great Recession and the COVID-19 pandemic [8] - Global demand for liquid hydrocarbons is expected to grow, with the U.S. maintaining a competitive advantage due to low production costs, positively impacting Enterprise's growth prospects [9] Group 3: Verizon Communications - Verizon Communications has a forward dividend yield of 6.3% and has increased its payouts for 18 straight years [10] - Despite a declining stock market, Verizon's share price has risen due to limited exposure to tariffs and strong business performance [11][12] - The company is expanding its offerings through the acquisition of Frontier Communications, expected to close in Q1 2026, which will enhance its products and services for consumers and small businesses [13]