The article highlights three stocks—Starwood Property Trust, Western Midstream Partners, and Verizon—that offer high dividend yields up to 10.3%, supported by strong financial profiles, making them attractive options for boosting passive income in 2026.
The article discusses the attractive and sustainable dividend yields offered by BDCs, REITs, and MLPs, highlighting their pass-through structures and stable cash flows, while also pointing out sector-specific quirks that investors should be aware of.
Ares Capital and FS KKR Capital are both business development corporations (BDCs) that provide funding to middle-market companies in the U.S. These companies offer high dividend yields due to their regulated investment company status. Ares Capital has a longer track record and a portfolio focused on software, services, and healthcare, while FS KKR has a higher dividend yield and a portfolio concentrated in software, capital goods, and healthcare. Ares Capital has a larger percentage of first lien senior secured loans in its portfolio, while FS KKR trades at a discount to its net asset value. Overall, FS KKR has a slight edge due to its higher dividend yield and improving investment portfolio.