3 High-Yield Dividend Stocks at 5-Year Lows: A Black Friday Buy for Long-Term Income Growth

For income-focused investors seeking resilience amid economic uncertainty, the current market environment offers a rare opportunity. As of November 2025, three high-yield dividend stocks-Telus Corp. (NYSE: TU), Starwood Property Trust Inc. (NYSE: STWD), and Ares Capital Corp. (NASDAQ: ARCC)-are trading near 5-year lows, presenting compelling value for those prioritizing recession-resistant sectors and sustainable growth. These companies operate in industries critical to modern economies, offering robust dividend yields while navigating structural tailwinds. Below, we dissect their financial health, sector positioning, and long-term appeal.

1. Telus Corp. (TU): Telecommunications as a Defensive Play

Telus Corp., a Canadian telecommunications and technology giant, offers a staggering 11.10% dividend yield according to analysis, making it one of the most attractive names in the sector. Despite a 15% decline in its stock price over the past two years-driven by price competition and industry consolidation-the company remains a cornerstone of essential services as reported. Its diversified offerings, including mobile and fixed-line communications, healthcare solutions, and data analytics for smart food chains, position it as a beneficiary of long-term digital transformation trends according to market analysis.

However, Telus's high leverage remains a concern according to Q3 earnings analysis. While its 2024 dividend payout ratio of $1.5566 per share underscores commitment to shareholder returns as detailed in investor reports, investors must weigh the risks of elevated debt against the company's defensive cash flow profile. For those prioritizing income over volatility, Telus's 5-year low valuation and critical infrastructure role make it a compelling buy, particularly in a recessionary climate where demand for connectivity remains inelastic.

2. Starwood Property Trust (STWD): REITs and the Power of Real Estate Diversification

Starwood Property Trust, a commercial and residential real estate investment trust (REIT), delivers a 10.90% dividend yield according to market data while maintaining a conservative Price/Earnings (PE) ratio of 10.15 and a Price/Book (PB) ratio of 0.96 as reported. As a REIT, STWD is legally required to distribute at least 90% of its taxable income, ensuring consistent payouts to shareholders. Its portfolio spans infrastructure lending, property management, and adaptive reuse projects, providing exposure to both residential and commercial real estate cycles according to market analysis.

The company's current valuation reflects broader market skepticism about real estate valuations, but this creates an entry point for long-term investors. With interest rates stabilizing and urbanization trends driving demand for housing and commercial spaces, STWD's diversified lending model offers downside protection. Its 5-year low status, combined with a yield exceeding 10%, makes it a standout for those seeking high income with moderate growth potential.

3. Ares Capital Corp. (ARCC): Middle-Market Financing in a Low-Yield World

Ares Capital Corp., a business development company (BDC), provides 9.84% dividend yield according to analysis by offering financing solutions to middle-market businesses. While detailed 2025 financial metrics remain elusive as noted in earnings reports, ARCC's historical focus on leveraged loans and private debt positions it to thrive in a low-interest-rate environment. BDCs like ARCC act as intermediaries between capital-starved businesses and investors, generating stable income through interest payments and fees according to market research.

The lack of recent data on ARCC's debt-to-equity ratio or earnings growth is a caveat as reported in investor materials, but its role in capital allocation during economic cycles remains undiminished. For investors comfortable with higher-risk, higher-reward profiles, ARCC's 5-year low valuation and high yield make it a speculative yet strategic addition to a diversified income portfolio.

The Case for Value-Driven Dividend Investing

These three stocks exemplify the power of value-driven dividend investing in recession-resistant sectors. Telus and STWD offer defensive cash flows from essential services and real estate, while ARCC taps into the enduring demand for business financing. Their current 5-year lows reflect temporary market pessimism rather than fundamental weakness, creating a "Black Friday" buying opportunity for patient investors.

As always, due diligence is critical. High yields often come with elevated risks, such as Telus's leverage or ARCC's opaque financials. However, for those prioritizing income growth and sector diversification, these names warrant serious consideration.