3 High-Yield Dividend Stocks to Buy Hand Over Fist in September

High-yield dividend stocks are rather common. But there's a big difference between a stock offering a big yield and one that can actually deliver reliable income, year after year. Otherwise, you can just buy any old penny stock with a triple-digit yield and watch your capital pay for your mistake.

That's why it's important to be picky with your high-yield picks. And the good news is, plenty of great companies offer double-digit yields while leaving room for growth.

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With September just around the corner, here are three stocks that stand out for investors looking to buy and hold for the long haul.

Annaly Capital Management: A 12% yield mortgage REIT

First off is Annaly Capital Management (NYSE: NLY), a mortgage real estate investment trust (mREIT) that works off of mortgage-backed securities and other real estate-related assets. Now, you can read all about the REIT's business model from their website, but the important thing to know here is that the company's strategy has historically produced a high dividend yield. Today, that's around 12%.

Yes, 12%. That wasn't a typo.

Of course, a yield that high doesn't come without trade-offs. Annaly's earnings and book value can be sensitive to interest rates, borrowing costs, mortgage spreads, and broader conditions in the housing and credit markets.

Its dividends can also fluctuate significantly; that's just how REIT dividends go, though they've generally trended upward over the last couple of years.

Plus, for investors looking for a good high-yield pick with decent growth potential, it's tough to beat Annaly's combination of double-digit yields and a consensus "moderate buy" rating.

Ares Capital Corp: 17 years of consistent dividends

Ares Capital Corp (NASDAQ: ARCC) is not a REIT; it's a business development company (BDC) that lends money to small- and mid-sized businesses through debt investments. Ares generates revenue from the interest and fees it collects from its portfolio companies.

For BDCs, diversification is just as important as company quality. I'd say that Ares' portfolio is quite diversified, with an understandable focus on Software & Services. That's historically an attractive sector, after all.

Ares Capital offers just under a 10% forward yield and boasts that it has maintained or increased its dividend payouts for over 17 years. That is not bad at all.

As with Annaly, Wall Street rates Ares Capital Corp a moderate buy, with modest upside.

Blue Owl Capital: A near 8% yield with room to grow

Last but not least is Blue Owl Capital Inc (NYSE: OWL), the alternative asset management company, not to be confused with Blue Owl Capital Corporation, the BDC, though the latter is part of the former's credit platform.

Blue Owl, the asset manager, specializes in private credit, GP (general partner) strategic capital, and real assets. The company has a substantial asset base that generates recurring management fees, providing a relatively predictable stream of revenue.

In terms of dividends, the company pays almost an 8% forward yield. It might be the lowest on this list, but it's practically light years ahead of your typical dividend stock. It's also raised dividends over the last five years, making it a solid pick for those looking for reliable income and dividend growth.

And lastly, a consensus among analysts rates Blue Owl Capital Inc a moderate buy.

Final thoughts

Annaly, Ares Capital, and Blue Owl prove that high yields and quality aren't mutually exclusive. Sure, REIT and BDC picks come with risks, particularly sensitivity to interest rates and broader market conditions. But all three companies currently offer elevated dividend yields backed by diversified portfolios or investment platforms.

For income-focused investors looking to put money to work in September and who aren't squeamish about moderate volatility, these three offer an attractive mix of substantial income and potential growth.

Rick Orford has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Ares Capital. The Motley Fool has a disclosure policy.