Seeking Up to 14% Dividend Yield? Analysts Suggest 2 Dividend Stocks to Buy
Monday, Nov 18, 2024 5:54 am ET
2min read Investors seeking high dividend yields should consider Hercules Capital (HTGC) and Ares Capital (ARCC), according to analysts. Both stocks offer attractive yields and have demonstrated strong operational performance.
Hercules Capital, a business development company (BDC), specializes in providing capital to venture-backed start-ups. The company offers a 10.6% dividend yield, with a total return of 230% over the last 10 years. Hercules' dividend growth has been steady, with a 5% annual rate since its IPO in 1994. The company's strong performance and high yield make it an appealing choice for passive income investors.
Ares Capital, another BDC, offers a 9.5% dividend yield. Ares has a history of market-beating returns, with a total return of 230% over the past decade. Its dividend growth has been steady, with a 5% annual rate since its IPO in 1994. Ares' dividend payout ratio is lower than Hercules', but it has been increasing in recent years, suggesting a commitment to maintaining or even increasing its dividend yield in the future.
Both Hercules Capital and Ares Capital have shown consistent dividend growth and strong operational performance, making them attractive options for investors seeking high yields. However, investors should monitor their earnings growth to ensure the long-term viability of these high-yielding dividends.
In addition to Hercules Capital and Ares Capital, investors can consider other high-yielding dividend stocks in various sectors. For example, Enterprise Products Partners (EPD) offers a 7.2% dividend yield, with a strong balance sheet and consistent cash inflows from operations. The company's dividend payout ratio of 70% indicates that it can comfortably maintain its current payout while reinvesting in growth opportunities.
In conclusion, investors seeking high dividend yields should consider Hercules Capital and Ares Capital. Both stocks offer attractive yields and have demonstrated strong operational performance. While investors should monitor their earnings growth to ensure the long-term viability of these high-yielding dividends, these two BDCs are worth considering for passive income investors. Additionally, investors can explore other high-yielding dividend stocks in various sectors to diversify their portfolios and achieve their financial goals.
Hercules Capital, a business development company (BDC), specializes in providing capital to venture-backed start-ups. The company offers a 10.6% dividend yield, with a total return of 230% over the last 10 years. Hercules' dividend growth has been steady, with a 5% annual rate since its IPO in 1994. The company's strong performance and high yield make it an appealing choice for passive income investors.
Ares Capital, another BDC, offers a 9.5% dividend yield. Ares has a history of market-beating returns, with a total return of 230% over the past decade. Its dividend growth has been steady, with a 5% annual rate since its IPO in 1994. Ares' dividend payout ratio is lower than Hercules', but it has been increasing in recent years, suggesting a commitment to maintaining or even increasing its dividend yield in the future.
Both Hercules Capital and Ares Capital have shown consistent dividend growth and strong operational performance, making them attractive options for investors seeking high yields. However, investors should monitor their earnings growth to ensure the long-term viability of these high-yielding dividends.
In addition to Hercules Capital and Ares Capital, investors can consider other high-yielding dividend stocks in various sectors. For example, Enterprise Products Partners (EPD) offers a 7.2% dividend yield, with a strong balance sheet and consistent cash inflows from operations. The company's dividend payout ratio of 70% indicates that it can comfortably maintain its current payout while reinvesting in growth opportunities.
In conclusion, investors seeking high dividend yields should consider Hercules Capital and Ares Capital. Both stocks offer attractive yields and have demonstrated strong operational performance. While investors should monitor their earnings growth to ensure the long-term viability of these high-yielding dividends, these two BDCs are worth considering for passive income investors. Additionally, investors can explore other high-yielding dividend stocks in various sectors to diversify their portfolios and achieve their financial goals.
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