Investing $10,000 in Each of These 5 Ultra-High-Yield Dividend Stocks Could Generate Over $3,700 in Passive Income in 2026

Source The Motley Fool

Key Points

  • These five stocks offer dividend yields of up to 9.4%.

  • They represent different sectors, including communication services, energy, financials, healthcare, and real estate.

  • 10 stocks we like better than Ares Capital ›

I have often wished the "easy button" featured in Staples' commercials years ago was a real thing. It would make investing, well, easier.

Unfortunately, there is no easy button in real life. However, if you're an income investor, a strategy exists that comes close. Investing $10,000 in each of these five ultra-high-yield dividend stocks could generate over $3,700 in passive income in 2026.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »

A seated person looking at money flying in the air.

Image source: Getty Images.

1. Ares Capital

Buying $10,000 worth of Ares Capital (NASDAQ: ARCC) shares should make you close to $940 this year in dividend income. The business development company (BDC) offers a juicy dividend yield of roughly 9.4%.

Is such an ultra-high yield worrisome? I don't think so. Ares Capital has either maintained or grown its dividend for 65 consecutive quarters. In my view, this trend should continue. CEO Kort Schnabel noted in the company's third-quarter earnings call that his team is seeing a "healthier market backdrop" with an acceleration of deals being reviewed.

2. Energy Transfer LP

Midstream energy stocks tend to offer especially attractive dividend yields. Energy Transfer LP (NYSE: ET) ranks among the best, with its forward distribution yield of 7.6%. An initial investment of $10,000 in this limited partnership (LP) would enable you to rake in at least $760 in passive income in 2026.

I view Energy Transfer's distribution as rock-solid. The demand for electricity in the U.S. is growing, partially due to the rapid expansion of data centers to host AI applications. Energy Transfer's 105,000 miles of natural gas pipeline and 236 billion cubic feet of natural gas storage put the LP in a great position to help utility companies meet this demand.

3. Pfizer

Which large-cap healthcare stock pays the highest dividend yield? Pfizer (NYSE: PFE). The big drugmaker's forward dividend yield currently stands at nearly 6.9%. Buying $10,000 worth of Pfizer stock would generate close to $690 in passive income in 2026 at that level.

To be sure, Pfizer's dividend payout ratio of 99.4% is concerning at first glance. However, the company continues to generate sufficient free cash flow to avoid cutting its dividend. Pfizer's management team has also been adamant that it plans to maintain and grow the dividend over time.

I don't think that Pfizer's patent cliff will jeopardize the dividend. Although the company does face the loss of exclusivity for several top-selling drugs over the next few years, it also has a strong lineup of newer products that should largely offset the anticipated revenue declines from the drugs losing patent protection.

4. Verizon Communications

Investing $10,000 in Verizon Communications (NYSE: VZ) should add around $700 to your passive income this year. The telecom giant's forward dividend yield is just a hair below 7%.

In September 2025, Verizon announced its 19th consecutive annual dividend increase. The company's free cash flow is growing robustly. New CEO Dan Schulman has promised to "aggressively transform" Verizon's culture, cost structure, and financial profile. I expect this initiative will further strengthen the company's already attractive dividend.

5. Vici Properties

Buying $10,000 worth of each of the previous four stocks could generate a combined $3,090 in passive income in 2026. Investing another $10,000 in Vici Properties (NYSE: VICI) should bring the total to over $3,700, thanks to Vici's forward dividend yield of nearly 6.5%.

As a real estate investment trust (REIT), Vici Properties is required to return at least 90% of its profits to shareholders as dividends. Making substantial profits hasn't been a problem for the company. Vici owns one of the largest portfolios of gaming, entertainment, hospitality, leisure, and wellness destinations. Its properties include three of the most famous casino resorts on the Las Vegas Strip – Caesars Palace Las Vegas (owned by Caesars Entertainment (NASDAQ: CZR)), MGM Resorts' (NYSE: MGM) MGM Grand, and the Venetian Resort Las Vegas.

Should you buy stock in Ares Capital right now?

Before you buy stock in Ares Capital, consider this:

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*Stock Advisor returns as of January 18, 2026.

Keith Speights has positions in Ares Capital, Energy Transfer, Pfizer, and Verizon Communications. The Motley Fool has positions in and recommends Ares Capital and Pfizer. The Motley Fool recommends Verizon Communications and Vici Properties. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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