After Treasury yields soared to over 5% for the ten-year note and the 30-year-long bond earlier this year, many on Wall Street urged investors to grab the once-in-20-year debt. While those that did are happy, those yields are currently much lower and could stay there as rate hikes are all but over, and rate cuts could be on the way by the summer.
Now is the time for investors with higher risk tolerance looking for passive income to grab ultra-high-yielding dividend stocks, with the shift moving back to lower rates. Intelligent investors will likely look to ultra-high-yield stocks as they may be the best place to look for passive income and total return gains in 2024.
We screened our 24/7 Wall St. Ultra-High dividend research database, looking for companies that offer dependable big dividends and can provide outstanding total return potential. Five incredible stocks look like great 2024 ideas.
Alliance Resource Partners
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This company is a leader in the thermal coal business, offers solid diversity, and a massive 13.22% yield. Alliance Resource Partners L.P. (NASDAQ: ARLP), a diversified natural resource company, produces and markets coal primarily to utilities and industrial users in the United States.
The company operates through four segments:
- Illinois Basin Coal Operations
- Appalachia coal operations
- Oil and Gas royalties
- Coal royalties
The company operates seven underground mining complexes in:
- Illinois
- Indiana
- Kentucky
- Maryland
- Pennsylvania
- West Virginia
In addition, it leases land and operates a coal loading terminal on the Ohio River at Mt. Vernon, Indiana; and buys and resells coal, as well as owns mineral and royalty interests in approximately 1.5 million gross acres of oil and gas-producing regions primarily in the Permian, Anadarko, and Williston Basins.
The company also offers various mining technology products and services, including:
- Data networks
- Communication and tracking systems
- Mining proximity detection systems
- Industrial collision avoidance systems
- Data and analytics software
Arbor Realty Trust
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This company trades at a ridiculous 6.9 times trailing earnings and pays a massive 11.33% dividend. Arbor Realty Trust (NYSE: ABR) invests in a diversified portfolio of structured finance assets in the multifamily, single-family rental, and commercial real estate markets in the United States.
The company operates in two segments:
- Structured Business
- Agency Business.
Arbor Realty Trust primarily invests in:
- Bridge and mezzanine loans
- Junior participating interests in first mortgages and preferred and direct equity
- Real estate-related joint ventures, actual estate-related notes
- Various mortgage-related securities.
Arbor Realty Trust offers bridge financing products to borrowers who seek short-term capital to be used in:
- Acquisition of property
- Financing by making preferred equity investments in entities that directly or indirectly own real property
- Mezzanine financing in the form of loans that are subordinate to a conventional first mortgage loan and senior to the borrower’s equity in a transaction
- Junior participation financing in the form of a junior participating interest in the senior debt
- Financing products to borrowers who are looking to acquire conventional, workforce, and affordable single-family housing
The company also underwrites, originates, sells, and services multifamily mortgage loans through conduit/commercial mortgage-backed securities.
Berry Corporation
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While off the radar, trading at just 12.33 times earnings and posting a stunning 13.81% dividend, this could be a huge winner. Berry Corporation (NYSE: BRY) is an independent upstream energy company that develops and produces conventional oil reserves in the western United States.
It operates through:
- Exploration and Production (E&P)
- Well Servicing and Abandonment (CJWS)
The E&P segment develops and produces onshore, low geologic risk, and long-lived conventional oil and gas reserves in California and Utah.
CJWS provides well site services in California to oil and natural gas production companies with a focus on
- Well servicing,
- Well-abandonment services
- Water logistics
- Rig-based and coiled tubing-based healthy maintenance and workover services
- Completion services
- Fluid management services
- Fishing and rental services
- Ancillary oilfield services
Dynex Capital
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A hefty 13.81% dividend is a passive income champion for more aggressive investors. Dynex Capital, Inc. (NYSE: DX) is a mortgage real estate investment trust that invests in mortgage-backed securities (MBS) on a leveraged basis in the United States.
It invests in agency and non-agency MBS consisting of residential MBS, commercial MBS (CMBS), and CMBS interest-only securities.
Agency MBS has a guarantee of principal payment by an agency of the U.S. government or a U.S. government-sponsored entity, such as Fannie Mae and Freddie Mac.
Non-Agency MBS have no such guarantee of payment.
FS KKR
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This is a well-known name on Wall Street, offers a solid entry point at current levels, and pays a massive 14.02 dividend. FS KKR Capital Corp. (NYSE: FSK) is a business development company specializing in investments in debt securities. It seeks to purchase interests in loans through secondary market transactions or directly from the target companies as primary market investments.
The company also seeks to invest in the following:
- First-lien senior secured loans
- Second-lien secured loans
- Subordinated loans or mezzanine loans
In connection with the debt investments, the firm also receives equity interests such as warrants or options as additional consideration. It also seeks to purchase minority interests in common or preferred equity in our target companies, either in conjunction with one of the debt investments or through a co-investment with a financial sponsor.
The fund may invest in corporate bonds and similar debt securities opportunistically.
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