Craving an Extra $1,000 in Annual Dividend Cash? Drop $9,700 Into These 2 Ultra-High-Yield Stocks Now
Forget waiting—these dividend dynamos deliver serious cash flow while traditional finance still debates yield curves.
Ultra-High-Yield Strategy Unleashed
Two stocks stand out with payout ratios that smash conventional savings accounts—turning $9,700 into a four-figure income stream. No complex derivatives, no waiting for Fed decisions—just raw dividend power.
Why Settle for Bank Rates?
While banks offer fractions of a percent, these picks generate returns that actually beat inflation—because earning 0.5% annually is just glorified loss prevention. The math doesn’t lie: $9,700 invested strategically morphs into $1,000 yearly—making your money work harder than a crypto miner during a bull run.
Cash Flow Revolution
Passive income shouldn’t require passive effort. These selections cut through market noise, bypassing overhyped growth stocks for straightforward, high-yield performance. No sugar-coating—just cold, hard dividend deposits.
Finance’s worst-kept secret? Sometimes the boring bets pay the bills.
Image source: Getty Images.
1. Dow
Shares of basic materials giant Dow are down by about 38% this year. Investors are reacting to a 50% dividend slash the company announced in July. While the payout has been cut in half, the stock's poor performance has lifted the yield investors can expect in the year ahead to 5.9% at recent prices.
Dow makes polyethylene and other commodity chemicals that are used to produce packaging and consumer goods. Increasing domestic supply in China, combined with rising interest rates in the U.S., made the past few years extra challenging.
New tariffs that change from week to week are causing manufacturers around the globe to dial down their activity, at a time when materials producers were already experiencing a supply glut. As a result, Dow is shuttering unprofitable facilities in Europe to lower operating costs.
Dow's previous payout level was unsustainable, but a plan to lower capital expenditures in 2025 by $1 billion could allow it to meet its dividend commitment until macroeconomic conditions improve. We don't know when the basic chemicals cycle will hit an upswing again, but investors holding Dow shares when it does could see an already high yield grow much larger.
2. AGNC Investment
If you've tried sifting the market for high-yield stocks, you've probably come across AGNC Investment or its peers. At recent prices, it offers a huge 14.9% yield.
AGNC Investment is a real estate investment trust (REIT) that invests in mortgage-backed securities, instead of physical real estate that it can lease to other businesses. The mREIT buys mortgage-backed securities with capital it borrows at relatively low short-term rates. It doesn't have to worry about nonpayment because the mortgages it buys are always backed by a government agency in the event of a default.
While AGNC doesn't have to worry about defaulting homeowners, the value of its mortgage-backed security portfolio is highly sensitive to fluctuating interest rates. The stock offers an unusually high yield right now because an ongoing trade war could force the Federal Reserve to make rapid interest rate changes.
The average yield AGNC receives from its assets ROSE from 3.72% in the second quarter of 2023 to 4.87% in the second quarter this year. Unfortunately, AGNC's average cost of funds soared from 0.63% to 2.86% over the same time frame.
The $0.12 per-share monthly dividend payment that AGNC provides has been lowered three times since 2015. With profit margins under pressure, there's a good chance we'll see another reduction in the next couple of years. However, while this stock could produce heaps of dividend income up front, investors who don't have an expert-level understanding of the bond market want to tread lightly.
