Passive income is characterized by its ability to generate revenue without requiring the earner’s continuous active effort, making it a desirable financial strategy for those seeking to diversify their income streams or achieve financial independence. The more passive income can help cover rising costs such as mortgages, insurance, taxes, and other expenses, the easier it is for investors to set aside money for future needs as they prepare for retirement. Dependable, recurring dividends from quality ultra-high-yield stocks are a recipe for success. For investors with a higher risk tolerance who are seeking over $12,000 in passive income per year, the five stocks in our $100,000 ultra-high-yield portfolio can deliver the goods. Plus, all have Buy ratings from the top Wall Street firms we cover at 24/7 Wall St.
We screened our 24/7 Wall St. ultra-high-yield dividend stock list, looking for companies that pay massive, double-digit, ultra-high-yield dividends, offering risk-tolerant investors stability and dependability. Investing $20,000 in each of the five will generate over $12,000 in passive income every year—$12,203 to be exact. Share purchase amounts, dividends, and income paid are as of the time of this writing.
Why do we cover ultra-high-yield dividend stocks?
While they are not suited for everybody, those trying to build strong passive income streams can do exceptionally well with these five top companies in their portfolios. Paired with more conservative blue-chip dividend giants, investors can use a barbell approach to generate substantial passive income.
AGNC Investment
AGNC Investment (NASDAQ: AGNC | AGNC Price Prediction) provides private capital to the U.S. housing market. The company has paid solid monthly dividends for years. It is currently yielding 14%, providing private capital to the U.S. housing market, enhancing liquidity in the residential real estate mortgage markets, and, in turn, facilitating home ownership.
The company invests primarily in agency residential mortgage-backed securities (RMBS) on a leveraged basis. These investments consist of residential mortgage pass-through securities and collateralized mortgage obligations for which a U.S. government-sponsored enterprise guarantees the principal and interest payments.
AGNC buys debt from the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac). Together, Fannie Mae and Freddie Mac are known as the GSEs, or government-sponsored enterprises. Alternatively, AGNC may purchase debt from a U.S. government agency, such as the Government National Mortgage Association (Ginnie Mae).
$20,000 will buy 1,900 shares, which pay $1.44 per year. That equals $2,735, and those dividends are paid monthly.
Wells Fargo has an Overweight rating with a $12 target price.
Ares Capital
The company specializes in providing financing solutions for the middle market and appears poised to reach new highs, garnering a Buy rating from 7 analysts and yielding a 10.20% dividend yield. Ares Capital (NASDAQ: ARCC) is a high-yielding business development company (BDC) specializing in acquisitions, recapitalizations, mezzanine debt, restructurings, rescue financing, and leveraged buyout transactions for middle-market companies.
As America’s largest BDC, Ares Capital leverages a massive capital base to maintain a diversified portfolio of over 400 companies, with no single investment exceeding 3%. Its primary risks include heavy exposure to the software sector and the inherent cyclicality of private credit. The firm also provides growth capital and general refinancing. It prefers to invest in companies in basic and growth manufacturing, business services, consumer products, healthcare products and services, and information technology. The fund will also consider investments in industries such as:
- Restaurants
- Retail
- Oil and gas
- Technology
It focuses on investments in the Northeast, Mid-Atlantic, Southeast, and Southwest regions from its New York office; the Midwest region from its Chicago office; and the Western region from its Los Angeles office.
The fund typically invests between $20 million and $200 million, with a maximum of $400 million, in companies with EBITDA between $10 million and $250 million annually. It makes debt investments ranging from $10 million to $100 million. The fund invests through:
- Revolvers
- First-lien loans
- Warrants
- Unitranche structures
- Second-lien loans
- Mezzanine debt
- Private high yield
- Junior Capital
- Subordinated debt
- Non-control preferred and common equity
The fund also selectively considers third-party-led senior and subordinated debt financings and opportunistically acquires stressed and discounted debt positions. Ares Capital prefers to act as an agent and lead transactions in which it invests. The fund also seeks board representation in its portfolio companies.
$20,000 would purchase 1,075 shares that pay $1.92 per year, for a total of $2,065.
Truist Financial has a Buy rating and a $22 target price.
Blackstone Secured Lending Fund
Run by one of the world’s biggest asset managers, and paying a stunning 13% dividend, this is a solid anchor position for the portfolio. Blackstone Secured Lending Fund (NYSE: BXSL) is an externally managed, non-diversified, closed-end management investment company. Its investment objectives are to generate current income and, to a lesser extent, long-term capital appreciation.
About 98% of the company’s portfolio is invested in first-lien, senior-secured debt, meaning it sits at the very front of the repayment queue if a borrower runs into trouble, a figure virtually unmatched among large BDCs. Its non-accrual rate was just 0.6% as of the end of 2025, one of the lowest in the sector, and the average loan-to-value across the portfolio stood at 50.5%.
The fund invests at least 80% of its total assets in secured debt investments. It seeks to achieve its investment objectives primarily through originated loans and other securities, including syndicated loans of private U.S. companies, typically in the form of first lien senior secured and unitranche loans (including first out/last out loans), and to a lesser extent, second lien, third lien, unsecured and subordinated loans, and other debt and equity securities.
It invests across various sectors, including aerospace and defense, air freight and logistics, building products, commercial services and supplies, healthcare providers and services, and others. Blackstone Credit BDC Advisors externally manages the company.
$20,000 would buy 850 shares that pay $3.08 per year, for a total of $2,618.
Truist Financial has a Buy rating with a $30 target price.
Starwood Property Trust
Starwood Capital is a well-established global investor with international investments across more than 30 countries. It is an affiliate of Starwood Property Trust (NYSE: STWD), which boasts a 11.30% dividend yield and is led by real estate legend Barry Sternlicht. The real estate investment trust (REIT) operates in the United States, Europe, and Australia through four segments:
- Commercial and Residential Lending
- Infrastructure Lending
- Property
- Investing and Servicing
The Commercial and Residential Lending segment:
- Originates, acquires, finances, and manages commercial first mortgages
- Non-agency residential mortgages
- Subordinated mortgages
- Mezzanine loans
- Preferred Equity
- Commercial mortgage-backed securities (CMBS)
- Residential mortgage-backed securities
The Infrastructure Lending segment originates, acquires, finances, and manages infrastructure debt investments. The Property segment primarily develops and manages equity interests in stabilized commercial real estate properties, including multifamily and net-leased commercial properties, held for investment purposes.
The Investing and Servicing segment:
- Manages and works out problem assets
- Acquires and holds unrated, investment-grade, and non-investment-grade rated CMBS comprising subordinated interests of securitization and re-securitization transactions
- Originates conduit loans to sell these loans into securitization transactions and acquire commercial real estate assets, including properties from CMBS trusts
Keefe, Bruyette & Woods has an Outperform rating and a $20 target price.
$20,000 will purchase 1,115 shares that pay $1.92 per year. That equals $2,140 in passive income.
Trinity Capital
Trinity Capital (NASDAQ: TRIN) offers venture debt financing to high-growth, venture capital-backed startups. Based in Phoenix, this company also pays a massive 12.10% dividend. It is an internally managed, closed-end, non-diversified management investment company that operates as a BDC. It is a specialty lending company that provides debt, including loans and equipment financing, to growth-stage companies, including venture-backed companies and companies with institutional equity investors.
Its investment objective is to generate current income and capital appreciation through its investments across five vertical markets. It seeks to achieve its investment objective by making investments consisting primarily of term loans, equipment financings, working capital loans, equity, and equity-related investments. The equipment financings involve loans for general or specific use, including the acquisition of equipment that is secured by the portfolio company’s equipment or other assets. Trinity Capital invests in growth-stage companies, which are typically private and often backed by institutional investors.
$20,000 will buy 1,295 shares that pay $2.04 per year. That totals $2,645.
UBS has a Buy rating with a $17 price target.
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