3 High-Yield Dividend Stocks You Won't Regret Doubling Up on Right Now

You shouldn't significantly increase your position in a high-yield dividend stock without considering several factors. For example, it's not wise to buy so much of any given stock that it negatively impacts your overall portfolio diversification. You also need to evaluate the chances of a dividend cut in the near future.

That said, some high-yield dividend stocks are strong candidates for additional capital. Here are three you won't regret doubling up on right now.

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1. Enterprise Products Partners

Enterprise Products Partners (NYSE: EPD) is a midstream energy leader that certainly checks off the high-yield box. The master limited partnership (MLP) pays a distribution yield of roughly 5.8%. Is this distribution safe? I think so.

For one thing, Enterprise has increased its distributions for 27 consecutive years. This track record underscores management's ability to navigate turbulence, given that the period includes the financial crisis of 2007 through 2009 and the COVID pandemic.

I also like Enterprise Products Partners' rock-solid balance sheet. It's no coincidence that the MLP has the highest credit rating in the midstream energy industry. Enterprise also has a very manageable debt leverage ratio of 3.2x.

Why load up on this pipeline stock now? The Iran war shows no signs of ending soon. Enterprise Products Partners' more than 50,000 miles of pipeline are critical in U.S. oil and gas exports, which should remain high as long as the conflict continues. Even if hostilities cease, the surging demand for natural gas driven by data centers should serve as a nice tailwind for Enterprise for years to come.

2. Enbridge

I'd put Enbridge (NYSE: ENB) in the same category as Enterprise Products Partners. It's also a midstream leader. Enbridge's forward dividend yield stands at roughly 5%. And its dividend looks quite safe, in my opinion.

Enbridge has an even more impressive streak of dividend hikes than Enterprise, having raised its dividend for 31 consecutive years. Its returns have trounced the S&P 500's (SNPINDEX: ^GSPC) since the turn of the century.

The company's pipelines transport around 30% of the crude oil produced in North America and 20% of the natural gas consumed in the U.S. The same tailwinds that are helping Enterprise Products Partners also benefit Enbridge.

Importantly, though, Enbridge isn't just a pipeline operator. Thanks to key acquisitions, the company is also the largest natural gas utility in North America by volume. This business gives Enbridge added stability, which makes doubling up on the stock less scary.

3. Ares Capital

Not all of the good high-yield dividend stocks to buy right now are in the energy sector. Ares Capital (NASDAQ: ARCC) is the largest publicly traded business development company (BDC).

If you're looking for an especially juicy dividend, you might love Ares Capital. Its forward dividend yield tops 10.2%. Ordinarily, such a lofty yield would make me nervous. However, I think this BDC will be able to keep dividends flowing at least at the current level.

Ares Capital has consistently maintained or grown its dividend for 16 consecutive years. Its core earnings per share continue to exceed the dividends paid. What I really like is that Ares Capital has around $988 million of spillover income -- undistributed income that could be used to supplement future dividend distributions.

What about the concerns that software and services make up 22% of Ares Capital's portfolio and that artificial intelligence (AI) could disrupt software companies? Ares Capital has engaged a reputable consulting firm to perform an independent review of its software exposure. This evaluation found that the BDC's AI-related risk is "relatively limited." Around 85% of Ares Capital's software portfolio had a low risk of AI disruption.

There's one other reason I think doubling up on Ares Capital now could pay off. Futures reflect a probability of up to 91% of an interest rate hike by the end of this year. Ares Capital would benefit from higher rates, which would boost its net investment income.

Keith Speights has positions in Ares Capital, Enbridge, and Enterprise Products Partners. The Motley Fool has positions in and recommends Ares Capital and Enbridge. The Motley Fool recommends Enterprise Products Partners. The Motley Fool has a disclosure policy.