3 High-Yield Financial Stocks Built to Keep Paying You for Years

Companies in the financial sector can be great income investments. They tend to generate substantial recurring cash flow, providing them with the stable funds to pay durable dividends. Many financial stocks also pay higher-yielding dividends that steadily grow.

Here are three high-yielding financial stocks built to pay reliable dividends.

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Brookfield Asset Management

Brookfield Asset Management (NYSE: BAM) is a leading global alternative investment manager. The company has over $1 trillion in assets under management across infrastructure, energy, private equity, real estate, and credit. Brookfield generates stable and steadily rising fee-based earnings by managing client assets. It has booked $3.1 billion in fee-related earnings over the last 12 months, up 18% year over year.

With stable earnings and minimal capital requirements, Brookfield aims to pay out about 95% of its fee-related earnings in dividends each year. Its payout currently yields 4.5%, putting it several times higher than the S&P 500 (1.1% yield).

Brookfield expects to grow its fee-related earnings at a 17% compound annual rate through 2030, driven by a more than 16% compound annual growth rate in its fee-bearing capital base as it expands its current investment strategies and launches new ones. That should support annual dividend growth of more than 15%.

Realty Income

Realty Income (NYSE: O) is one of the world's largest real estate investment trusts (REITs). It owns a diversified portfolio of retail, industrial, gaming, and other properties secured by long-term net leases with many of the world's leading companies. Net leases generate stable rental income because tenants cover all property operating costs, including routine maintenance, real estate taxes, and building insurance.

The REIT pays out around 70% of its stable cash flow via its monthly dividend, which currently yields over 5%. Realty Income uses the cash flow it retains to invest in additional income-generating real estate.

The company's strategy has enabled it to pay a stable and steadily rising dividend. Realty Income has increased its monthly dividend 135 times since its public market listing in 1994, including for the last 115 quarters in a row (4.1% average annual growth rate). With over $14 trillion of real estate suitable for net leases across the U.S. and Europe, Realty Income has a long runway to continue growing its portfolio and dividend.

Main Street Capital

Main Street Capital (NYSE: MAIN) is a business development company (BDC). It provides customized debt and equity capital solutions to lower-middle-market companies ($10 million to $150 million in revenue). It also provides debt capital to companies owned by or in the process of being acquired by a private equity fund (with under $500 million in revenue). These high-yielding loans generate recurring interest income, while the equity investments provide dividend income and potential capital appreciation.

As a BDC, Main Street Capital must distribute 90% of its taxable income to investors via dividends. It does this through two payments. Main Street Capital pays a monthly dividend set at a sustainable level. It has never reduced this dividend. Instead, it has grown by 160% since its 2007 IPO, including 12 increases since the fourth quarter of 2021. At the current rate, Main Street's monthly dividend yields over 6%.

Additionally, the BDC periodically pays supplemental quarterly dividends. It has paid one for the last 19 consecutive quarters, while maintaining the current rate since early 2024. When added to the monthly payments, Main Street Capital's current annualized dividend yield is over 8.5%.

Bankable income streams

Brookfield Asset Management, Realty Income, and Main Street Capital pay high-yielding dividends backed by stable and growing cash flows. That should enable these financial companies to continue growing their dividends going forward. They're ideal dividend stocks to buy for those seeking an income stream they can bank on in the years to come.

Matt DiLallo has positions in Brookfield Asset Management, Main Street Capital, and Realty Income. The Motley Fool has positions in and recommends Brookfield Asset Management and Realty Income. The Motley Fool has a disclosure policy.