<p>I probably don't fit the stereotype for someone who invests in stocks that pay exceptionally high dividend yields. I don't depend on my investments for income. I'm not planning to do so in the near future, either.</p>
<p>However, my portfolio includes several ultra-high-yield dividend stocks. And I'm adding to my positions in several of them. Here's why I'm buying these three ultra-high-yield dividend stocks hand over fist for 2026.</p>
<div><img width="880" height="559" src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84NDc4NTgvZ2V0dHlpbWFnZXMtZGl2aWRlbmQteWllbGQtb24tbm90ZWJvb2suanBnJnc9Mzg0MA?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84NDc4NTgvZ2V0dHlpbWFnZXMtZGl2aWRlbmQteWllbGQtb24tbm90ZWJvb2suanBnJnc9Mzg0MA"/>
<p>Image source: Getty Images.</p>
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<h2>1. Ares Capital</h2>
<p><strong>Ares Capital</strong> <span class="ticker-mention inline-flex items-center font-bold">(ARCC <span class="ml-1 text-red-900">0.99%</span>)</span> is the largest publicly traded business development company (BDC). Its investment portfolio currently includes 587 companies, with nearly one-quarter of them in the software and services industry. </p>
<p>I'm continuing to add shares of Ares Capital in large part due to its attractive forward dividend yield of 9.5%. I like this juicy dividend because it should help the BDC stock deliver market-beating total returns.</p><div><div id="foolcom_sidebar_top_container"></div></div>
<section><div><div><div><small><div>Expand</div></small></div><div><img alt="Ares Capital Stock Quote" width="64" height="64" src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vYXJ0L2NvbXBhbnlsb2dvcy9tYXJrL0FSQ0MucG5nJnc9MTI4?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vYXJ0L2NvbXBhbnlsb2dvcy9tYXJrL0FSQ0MucG5nJnc9MTI4"/></div><div><h2>NASDAQ: ARCC</h2><div>Ares Capital</div></div></div><div><div><div>Today's Change</div><div>(-0.99%) $-0.20</div><div>Current Price</div><div>$19.94</div></div><div></div></div></div><div><div></div><div><h3>Key Data Points</h3><div><div>Market Cap</div><div>$14B</div><div>Day's Range</div><div>$19.84 - $20.16</div><div>52wk Range</div><div>$18.26 - $23.84</div><div>Volume</div><div>9.1M</div><div>Avg Vol</div><div>5.4M</div><div>Gross Margin</div><div>76.26%</div><div>Dividend Yield</div><div>9.63%</div></div></div></div></section>
<p>That's what has happened over the long term. Since its inception in 2004, Ares Capital's total returns have handily beaten those of the <strong>S&amp;P 500</strong> <span class="ticker-mention inline-flex items-center font-bold">(^GSPC <span class="ml-1 text-green-900">+0.88%</span>)</span>. Am I concerned that this trend hasn't been sustained in 2025? Nope. Ares Capital appears to be well-positioned for the future.</p><div><div><div>Advertisement</div><div><div></div></div></div></div>
<p>The private lending market is growing. Ares Capital's reputation, industry relationships, and access to capital make it a go-to source for financing for many middle-market companies. I expect the BDC's investment approach will enable it to continue making smart decisions that reward shareholders.</p><div><div id="in_line_article_pitch_container"></div></div>
<h2>2. Enbridge</h2>
<p>I'm optimistic by nature. However, the steep market valuation and economic uncertainty are combining to make me more cautious than usual about which stocks I buy. <strong>Enbridge</strong> <span class="ticker-mention inline-flex items-center font-bold">(ENB <span class="ml-1 text-red-900">0.23%</span>)</span> is an ideal stock to buy, as it balances my optimism with my caution.</p>
<p>This energy company pays a forward dividend yield of 5.9%. Additionally, it has solid growth prospects, particularly with the increasing demand for natural gas as new data centers are constructed and as coal power plants convert to natural gas. </p>
<section><div><div><div><small><div>Expand</div></small></div><div><img alt="Enbridge Stock Quote" width="64" height="64" src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vYXJ0L2NvbXBhbnlsb2dvcy9tYXJrL0VOQi5wbmcmdz0xMjg?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vYXJ0L2NvbXBhbnlsb2dvcy9tYXJrL0VOQi5wbmcmdz0xMjg"/></div><div><h2>NYSE: ENB</h2><div>Enbridge</div></div></div><div><div><div>Today's Change</div><div>(-0.23%) $-0.11</div><div>Current Price</div><div>$46.63</div></div><div></div></div></div><div><div></div><div><h3>Key Data Points</h3><div><div>Market Cap</div><div>$102B</div><div>Day's Range</div><div>$46.62 - $47.33</div><div>52wk Range</div><div>$39.73 - $50.54</div><div>Volume</div><div>3.6M</div><div>Avg Vol</div><div>3.9M</div><div>Gross Margin</div><div>32.82%</div><div>Dividend Yield</div><div>5.78%</div></div></div></div></section>
<p>Enbridge projects around $50 billion worth of growth opportunities through 2030. Nearly half of them (roughly $23 billion) are for its gas transmission business.</p>
<p>The stock also satisfies my cautious side. Enbridge is the largest natural gas utility in North America based on volume. That's as stable a business as you'll find. Its 18,085 miles of crude oil pipeline and 70,140 miles of natural gas pipeline (including pipe owned by its DCP Midstream joint venture) generate steady cash flow.</p>
<p>Management describes Enbridge's business model as &#34;low-risk&#34; and &#34;utility-like.&#34; I agree. Combined with its extraordinary dividend (which has increased for 30 consecutive years, by the way) and its attractive growth prospects, Enbridge is the kind of stock that aligns perfectly with my current investing goals.</p>
<h2>3. Enterprise Products Partners</h2>
<p>My reasons for buying <strong>Enterprise Products Partners</strong> <span class="ticker-mention inline-flex items-center font-bold">(EPD <span class="ml-1 text-red-900">0.16%</span>)</span> are similar to why I'm buying Enbridge. Enterprise is another midstream energy leader. It operates more than 50,000 miles of pipeline, storage facilities that hold over 300 million barrels of liquids, and other energy infrastructure assets. </p>
<p>This limited partnership (LP) pays a quarterly distribution that yields 6.8%. Enterprise Products Partners has increased its distribution for 27 consecutive years. I don't expect this impressive streak will end anytime soon.</p>
<section><div><div><div><small><div>Expand</div></small></div><div><img alt="Enterprise Products Partners Stock Quote" width="64" height="64" src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vYXJ0L2NvbXBhbnlsb2dvcy9tYXJrL0VQRC5wbmcmdz0xMjg?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vYXJ0L2NvbXBhbnlsb2dvcy9tYXJrL0VQRC5wbmcmdz0xMjg"/></div><div><h2>NYSE: EPD</h2><div>Enterprise Products Partners</div></div></div><div><div><div>Today's Change</div><div>(-0.16%) $-0.05</div><div>Current Price</div><div>$31.94</div></div><div></div></div></div><div><div></div><div><h3>Key Data Points</h3><div><div>Market Cap</div><div>$69B</div><div>Day's Range</div><div>$31.81 - $32.22</div><div>52wk Range</div><div>$27.77 - $34.53</div><div>Volume</div><div>3.8M</div><div>Avg Vol</div><div>4M</div><div>Gross Margin</div><div>12.74%</div><div>Dividend Yield</div><div>6.76%</div></div></div></div></section>
<p>Several of the same tailwinds that benefit Enbridge should also help Enterprise Products Partners. The demand for natural gas is increasing, driven by the growing adoption of artificial intelligence (AI) applications and other factors. Rising exports of crude oil, natural gas, ethane, and liquefied petroleum gas (LPG) produced in the U.S. should also boost Enterprise's revenue.</p>
<p>Enterprise Products Partners offers stability, too. The LP has a long track record of generating dependable cash flow and delivering double-digit returns on invested capital (ROIC). Some ultra-high-yield dividend stocks are risky propositions, but I don't think Enterprise is one of them.</p>
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ARCC

<p>The article discusses the author's decision to invest in three ultra-high-yield dividend stocks for 2026: Ares Capital, Enbridge, and Enterprise Products Partners. Ares Capital is favored for its 9.5% dividend yield and strong market position. Enbridge is chosen for its 5.9% yield, growth prospects, and stability in the natural gas sector. Enterprise Products Partners is selected for its 6.8% yield, extensive energy infrastructure, and reliable cash flow. The author believes these stocks will provide market-beating returns and align with their investment goals.</p>

Why I'm Buying These 3 Ultra-High-Yield Dividend Stocks Hand Over Fist for 2026