My 3 Favorite Ultra-High-Yield Dividend Stocks to Buy for October

Does a market environment with nagging inflation, Fed rate hikes, and geopolitical uncertainty make ultra-high-yield dividend stocks riskier? Not necessarily. Actually, the opposite could be true for certain stocks that offer exceptionally high yields.

October is historically the most volatile month of the year for stocks. But my three favorite ultra-high-yield dividend stocks to buy this month could be less volatile than most.

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1. Ares Capital

Rising interest rates create headwinds for many companies. However, they benefit the business development company (BDC) Ares Capital (NASDAQ: ARCC). Roughly 94% of Ares Capital's new investment commitments in the second quarter of 2026 involved floating rates. When interest rates rise, the BDC makes more money.

Ares Capital performed well even before the Fed began raising rates. The company's assets under management (AUM) increased 17% year over year in Q2. Its fee-related earnings jumped 20%, while realized income soared over 30%. And these results came amid a generally slower transaction environment for the BDC industry.

But Ares Capital isn't your run-of-the-mill BDC. For one thing, it's the largest publicly traded BDC. Ares Capital's portfolio is much more diversified than most of its peers. Its loss rates are also far below the industry averages.

I've saved the best part for last. Ares Capital's forward dividend yield tops 10%. The company recently increased its dividend by 20%. It has maintained or grown its dividend for 16 consecutive years. As icing on the cake, Ares Capital's total returns have beaten the S&P 500 by roughly 20% since its initial public offering in 2004.

2. Enterprise Products Partners

The Iran war has created both winners and losers. Enterprise Products Partners (NYSE: EPD) is a clear member of the former group. The midstream energy leader's business is booming, driven by strong demand for U.S. natural gas liquids (NGL) exports.

Artificial intelligence (AI) is another key tailwind for Enterprise Products Partners. Data centers that host AI applications require dependable power. Natural gas is an ideal fuel for the power plants supporting these facilities.

I think Enterprise Products Partners is arguably the highest-quality pipeline stock around. Its balance sheet ranks as the strongest in the industry. The limited partnership's management team is also top-notch.

So is its distribution. Enterprise's forward yield hovers near 6.3%. The company has increased its distribution for 28 consecutive years. I fully expect that streak to continue for a long time to come.

3. Pfizer

Pharma stocks are among the most resilient during periods of elevated uncertainty. Pfizer (NYSE: PFE) has clearly demonstrated its ability to survive and thrive, with its operations dating back to 1849.

To be sure, Pfizer faces some challenges. Its COVID-19 product sales have declined sharply since the pandemic's peak. Several of the company's top drugs lose patent exclusivity over the next few years, notably including blockbuster blood thinner Eliquis and breast cancer drug Ibrance, both of which have key U.S. patents expiring next year.

Importantly, though, Pfizer has invested in both internal research and development and external acquisitions to prepare for its patent cliff. These efforts are paying off. For example, the company has secured three key U.S. regulatory approvals this year. Also, around one-fourth of Pfizer's operational revenue growth in the second quarter of 2026 came from acquired products. As a result, the big drugmaker expects to deliver a high-single-digit compound annual growth rate in revenue after 2028.

Meanwhile, Pfizer's forward dividend yield stands north of 6%. I think the dividend is relatively safe despite the company's near-term headwinds. Pfizer CEO Albert Bourla went out of his way to stress on the Q2 earnings call that investors can depend on the dividend, stating that it will be maintained even in "the most stretched scenarios that we are running."

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