3 Ultra-High-Yield Dividend Stocks to Buy in August (1 Yields Over 13.5%)

2 weeks ago 28

Matt DiLallo, The Motley Fool

Sat, August 8, 2026 astatine 7:50 AM CDT 4 min read

The S&P 500 currently yields lone astir 1%, adjacent its lowest level successful much than 20 years. Many stocks connection adjacent little yields.

However, determination are immoderate big-time yields retired determination for those seeking a much lucrative income stream. Here are 3 ultra-high-yielding dividend stocks to bargain this month, including 1 that yields implicit 13.5%.

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AGNC Investment

We'll commencement astatine the apical with AGNC Investment (NASDAQ: AGNC), which presently yields much than 13.5%. The existent property concern spot (REIT) pays a monthly dividend, making it adjacent much appealing to income-seeking investors.

The REIT exclusively invests successful Agency MBS, pools of residential mortgages guaranteed against recognition losses by authorities agencies specified arsenic Fannie Mae. Agency MBS are low-risk, fixed-income investments. AGNC Investment uses leverage to boost its returns, though that besides increases its hazard profile.

AGNC Investment has paid its existent dividend for 75 consecutive months. Despite a challenging concern environment, it's successful a beardown presumption to proceed paying its monster monthly dividend. It tin presently make mid-to-high double-digit leveraged returns connected caller MBS investments, which aligns good with its existent dividend level.

Ares Capital

Ares Capital's (NASDAQ: ARCC) dividend output is approaching 10%. The concern improvement institution (BDC) has paid a unchangeable oregon increasing dividend for 17 consecutive years.

The BDC is simply a person successful providing nonstop loans and different investments to backstage mediate marketplace companies ($500 cardinal to $1 cardinal successful revenue). While these higher-yielding loans person higher hazard profiles, Ares has a terrific underwriting way record. Ares annualized nett realized nonaccomplishment complaint is little than 0% crossed much than $73 cardinal of realized investments. That's amended than banks (-0.6%) and its BDC peers (-1.1%).

While Ares Capital's halfway net person dipped beneath its dividend during the archetypal fractional of this twelvemonth ($0.47 per stock successful the archetypal and 2nd quarters compared to its $0.48 per stock quarterly dividend payment), its big-time payout isn't astatine risk. It besides recorded a nett realized summation of $0.14 per stock truthful acold this year. Additionally, it carried guardant $1.38 per stock of excess taxable income from past twelvemonth for organisation successful 2026. Add successful its steadfast portfolio and equilibrium sheet, and it's successful a coagulated presumption to support its streak of dividend stableness and growth.

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