4 Ultra-High-Yield Stocks With 9% Dividends Everyone Forgot About

"Investors love dividend stocks, especially those with ultra-high yields, because they provide a substantial passive income stream and offer significant total return potential. Total return includes interest, capital gains, dividends, and distributions realized over time. In other words, the total return on an investment or a portfolio consists of income and stock appreciation. At 24/7 Wall St., we consistently emphasize the potential of total return to our readers. It is one of the most effective ways to enhance the prospects of overall investing success. Once again, total return refers to the collective increase in a stock's value, including dividends."

"We decided to screen our 24/7 Wall St. blue-chip dividend stock database, looking for companies that yield 9% or more but are always forgotten by growth and income investors. Four stocks caught our attention, and once investors realize they have also overlooked them, it might be time to take a closer look. While these stocks may not be suitable for everyone, investors looking to build strong passive income streams could benefit from including some of these top companies in their portfolios. Paired with more conservative blue-chip dividend giants, investors can employ a barbell approach to generate substantial passive income streams."

"Since 1926, dividends have contributed approximately 32% of the total return for the S&P 500, while capital appreciation has contributed 68%. Therefore, sustainable dividend income and capital appreciation potential are essential for total return expectations. A study by Hartford Funds, in collaboration with Ned Davis Research, found that dividend stocks delivered an annualized return of 9.18% over the 50 years from 1973 to 2023."

Ultra-high-yield dividend stocks can provide substantial passive income while contributing to total return, which comprises interest, capital gains, dividends, and distributions. Screening a blue-chip dividend database for yields of 9% or more identified four often-overlooked companies that may suit income-focused investors. Combining select ultra-high-yield stocks with conservative blue-chip dividend giants creates a barbell approach to enhance passive income streams while managing risk. Historical data show dividends accounted for about 32% of S&P 500 total returns since 1926, and a Hartford Funds/Ned Davis Research study found dividend stocks averaged a 9.18% annualized return from 1973–2023.

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