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A look at ARCC, EPD, and PFE as high-yield dividend plays

A look at ARCC, EPD, and PFE as high-yield dividend plays

A recent write-up covered three high-yield dividend stocks that might hold up well despite inflation and rate hikes. Ares Capital (ARCC) has a forward yield over 10%. They actually benefit from higher interest rates since 94% of their Q2 new commitments used floating rates. Their assets under management grew 17% year over year. Enterprise Products Partners (EPD) yields about 6.3%. They are seeing a lot of demand from natural gas exports, plus natural gas is heavily used to power AI data centers. They've increased their distribution for 28 consecutive years. Pfizer (PFE) yields over 6%. They are facing patent cliffs next year for major drugs like Eliquis and Ibrance, plus falling COVID revenue. However, they are using acquisitions to replace that revenue, and the CEO recently stated the dividend is safe even in worst-case scenarios.
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@TallDrive706 1 week ago

Interesting mix of income plays. The yields stand out, but each has its own risks around rates, cycles, and future earnings.

@ClaireH27 6 days ago

Enterprise Products Partners is a classic choice for income seekers. Their track record with distributions is honestly hard to beat.