--- title: "3 Dividend Stocks Yielding Over 8.5% to Buy With $1,000 Right Now -- and Hold for a Lifetime of Passive Income" type: "News" locale: "en" url: "https://longbridge.com/en/news/291064278.md" description: "The article recommends three high-yield dividend stocks for passive income: Starwood Property Trust (STWD), yielding ~11.5% via diversified real estate loans; Main Street Capital (MAIN), a BDC yielding >8.5% with consistent dividend growth since 2007; and Western Midstream Partners (WES), an MLP yielding >8.5% supported by stable energy infrastructure cash flows. These entities are highlighted for their sustainable payout histories and potential to generate significant annual returns on modest investments." datetime: "2026-06-28T19:25:51.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/291064278.md) - [en](https://longbridge.com/en/news/291064278.md) - [zh-HK](https://longbridge.com/zh-HK/news/291064278.md) --- # 3 Dividend Stocks Yielding Over 8.5% to Buy With $1,000 Right Now -- and Hold for a Lifetime of Passive Income Most stocks don't offer very appealing dividends these days, with the yield on the **S&P 500** near a multi-decade low at around 1%. Investors seeking a higher yield often need to take on more risk, including the greater likelihood of a future dividend cut. However, there are some lower-risk, higher-yielding investment options out there if you know where to look. Here are three companies yielding over 8%. Those high yields could enable investors to turn $1,000 into a lucrative passive income stream that could last a lifetime. ![A person measuring a yield sign.](https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84NzY2MDMvYS1wZXJzb24tbWVhc3VyaW5nLWEteWllbGQtc2lnbi5qcGcmdz0zODQw?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg) Image source: Getty Images. ## Starwood Property Trust **Starwood Property Trust** (STWD +1.26%) is a real estate investment trust (REIT). These entities must distribute at least 90% of their taxable income to investors to comply with IRS regulations. As a result, most REITs have higher yields. Starwood's is currently around 11.5%. At that rate, a $1,000 investment would generate $115 in annual dividend income. The REIT has never cut its dividend since its 2010 IPO and has maintained its current payment level since 2014. One of the keys driving Starwood's dividend durability is its diversification. The mortgage REIT invests in commercial real estate-backed loans (52% of its portfolio), infrastructure loans (10%), residential loans (8%), and several other assets (10%). It also has a growing portfolio of owned properties (20%). Expand ![Starwood Property Trust Stock Quote](https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vYXJ0L2NvbXBhbnlsb2dvcy9tYXJrL1NUV0QucG5nJnc9MTI4?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg) ## NYSE: STWD Starwood Property Trust Today's Change (1.26%) $0.21 Current Price $16.82 ### Key Data Points Market Cap $6.2B Day's Range $16.54 - $16.84 52wk Range $16.54 - $21.05 Volume 4.3M Avg Vol 3.1M Gross Margin 84.44% Dividend Yield 11.56% Starwood's latest diversification move was the acquisition of the net-lease real estate platform Fundamental Income Properties for $2.2 billion last year. It owns an expandable portfolio of properties secured by long-term leases (a 17-year weighted-average lease term and 2.2% average annual rent escalations). This platform will provide Starwood steadily rising income to support its high-yielding dividend. ## Main Street Capital **Main Street Capital** (MAIN +1.63%) is a business development company (BDC). Like REITs, BDCs must distribute at least 90% of their taxable income to comply with IRS regulations. As a result, they typically offer high yields. Main Street meets this requirement by paying two dividends. The BDC pays a monthly dividend set at a sustainable level. As a result, Main Street has never reduced its monthly dividend. Instead, it has increased this payment 160% since its 2007 IPO, including for the last 12 quarters in a row. Additionally, Main Street periodically pays supplemental quarterly dividends to reach its required payout ratio. It has paid a supplemental dividend for 19 straight quarters. At the current annualized rate of these two payments, Main Street yields more than 8.5% at its recent share price. Expand ![Main Street Capital Stock Quote](https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vYXJ0L2NvbXBhbnlsb2dvcy9tYXJrL01BSU4ucG5nJnc9MTI4?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg) ## NYSE: MAIN Main Street Capital Today's Change (1.63%) $0.82 Current Price $51.01 ### Key Data Points Market Cap $4.7B Day's Range $50.06 - $51.47 52wk Range $48.66 - $66.37 Volume 705.2K Avg Vol 727K Gross Margin 100.00% Dividend Yield 6.66% The BDC primarily invests in loans to small private companies, generating interest income that it pays out through dividends. Additionally, Main Street Capital will make equity investments in some of its portfolio companies, which offer dividend income and potential capital appreciation. These equity investments have helped contribute to its growing dividend over the long term. ## Western Midstream Partners **Western Midstream Partners** (WES +0.54%) is a master limited partnership (MLP). These pass-through entities (MLPs send a Schedule K-1 Federal tax form each year) tend to have higher dividend yields due to their higher payout ratios and lower valuations resulting from the tax complexities of K-1s. The MLP operates oil and gas pipelines, processing plants, and other energy midstream infrastructure. These assets generate stable cash flow backed by long-term contracts. That predictable cash flow supports Western Midstream's more than 8.5%-yielding distribution. Expand ![Western Midstream Partners Stock Quote](https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vYXJ0L2NvbXBhbnlsb2dvcy9tYXJrL1dFUy5wbmcmdz0xMjg?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg) ## NYSE: WES Western Midstream Partners Today's Change (0.54%) $0.23 Current Price $43.01 ### Key Data Points Market Cap $17B Day's Range $42.64 - $43.14 52wk Range $36.90 - $48.01 Volume 623.5K Avg Vol 1.4M Gross Margin 51.54% Dividend Yield 8.56% The company has increased its payout by 184% since 2021, following a 2020 payout reset aimed at strengthening its financial profile. It aims to deliver low-to-mid annual distribution growth going forward, fueled by organic expansion projects and acquisitions. Western Midstream plans to spend $850 million to $1 billion on maintaining and expanding its operations this year, including building the Pathfinder Pipeline and North Loving II gas processing plant. Additionally, it agreed to spend $1.6 billion to buy Brazos Delaware to strengthen its midstream footprint. These investments support its growing distribution. ## Lower risk, high-yielding investments Entities like REITs, BDCs, and MLPs tend to offer higher dividend yields. That makes them enticing options for investors seeking lucrative income streams. Starwood Property, Main Street Capital, and Western Midstream Partners have solid track records of paying sustainable dividends, making them ideal investments for those seeking to turn $1,000 into a durable stream of passive income. ### Related Stocks - [WES.US](https://longbridge.com/en/quote/WES.US.md) - [MAIN.US](https://longbridge.com/en/quote/MAIN.US.md) - [STWD.US](https://longbridge.com/en/quote/STWD.US.md) - [.SPX.US](https://longbridge.com/en/quote/.SPX.US.md) ## Related News & Research - [How Investors Are Reacting To Starwood Property Trust (STWD) Plunging Net Income And Troubled Asset Resolution Plan](https://longbridge.com/en/news/295400441.md) - [Main Street Capital Q2 investment income rises on higher interest income](https://longbridge.com/en/news/295141175.md) - [Oracle surges: What's driving the sudden rally](https://longbridge.com/en/news/295282775.md) - [Morgan Stanley to facilitate about $1.5 trillion to finance US innovation over 10 years](https://longbridge.com/en/news/295453532.md) - [CleanSpark posts investor presentation on shift toward energy infrastructure compute strategy](https://longbridge.com/en/news/295426273.md)