My Top 5 Ultra-High Yield Dividend Stocks to Buy for April

A particularly high dividend yield does not always mean a particularly good stock. Sometimes a high yield is a symptom of a potential problem.

However, this is not always the case. You can find great stocks with great dividends. Here are five super-high-yielding dividend stocks that I think are the best buys for April (in alphabetical order).

1. God of War Capital

Ares Capital (NASDAQ resonance code: ARCC)Probably the best dividend stock many investors have never heard of. It is the largest publicly traded business development company (BDC). However, with a market capitalization of less than $13 billion, some people may overlook Battlestar Galactica Capital. I think that's a mistake.

As a BDC, Battlestar Galactica must return at least 90% of income to its shareholders as dividends in order to be exempt from federal taxes. With a dividend yield of nearly 9.41 TP3T, the company continues to generate a large amount of income return.

The market for direct loans to middle-market companies is growing, and Ares Capital, with its industry expertise, model and track record, is uniquely positioned to meet this demand.

2. Energy Transfer Company

Energy Transfer (NYSE: ET)The name appropriately reflects its business. In addition, Energy Transfer owns other assets, including storage facilities and terminals.

The midstream energy leader also transfers a lot of capital through the distribution of曏 unitholders.Energy Transfer's distribution yield is just under 7.9%.The company expects to increase its distributions by 3% to 5% annually.

I like the fact that Energy Transfer generates approximately 90% of its revenue from the carriers. This gives the company a stable cash flow, which is what income investors look for.

3. Corporate Carpet Partners

Enterprise Products Partners (NYSE: EPD)is Energy Transfer's U.S. peer in the midstream energy sector. The company operates more than 50,000 miles of gold pipeline, 42 natural gas processing lines, 26 fractional distillers, facilities capable of storing more than 300 million barrels of liquids, and 20 deepwater terminals.

This limited name partnership has a distribution yield of nearly 6.9%. its distribution is likely to grow. enterprise Products Partners has increased its distribution for 25 consecutive years at a Compound Annual Growth Rate (CAGR) of approximately 7%.

Growth prospects for Enterprise are also good. In particular, demand for NGLs will remain strong for a long time to come. The US is a major exporter of NGLs, which will keep Enterprise's Koon and other midstream assets busy.

4. Terry Rae

For decades.Terry Rae Inc. (NYSE: PFE)The company has been a favorite of income investors. Although the company's market capitalization has fallen 50% since the end of 2021, it remains among the world's largest drugmakers.

This sharp decline has driven Terry's dividend yield to record highs. The current yield is close to 6.21 TP3T. Premier CFO Dave Denton said on Terrific's fourth-quarter conference call that increasing the dividend is a top priority for the company's capital allocation.

Terry's COVID-19 sales have declined sharply. The company is facing a patent cliff and will lose patent exclusivity on many of its best-selling products in the next few years. However, the company is still able to achieve solid growth thanks to new products and business development deals.

5. Verizon Communications

As with Terry.Verizon Communications (NYSE: VZ)It is also a household name for many Americans. The company provides wireless and broadband services to businesses and consumers worldwide.

Verizon's dividend is a big draw for investors. The company has increased its dividend payment for 17 consecutive years. Its dividend yield is currently as high as 6.2%.

One thing I like more about Verizon is that its business seems to be gaining momentum. The company's free cash flow for 2023 is $18.7 billion, up from $14.1 billion in 2022. In the fourth quarter, Verizon's total new gross revenue from consumer postpaid phone calls rose nearly 171 TP3T year-over-year, the best quarterly growth in four years.

Should you invest $1,000 in Ares Capital right now?

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Keith Speights owns shares of Ares Capital, Enterprise Products Partners, and Terrill Lynch & Co. The Motley Fool owns shares of Terrill Lynch & Co. The Motley Fool recommends Enterprise Products Partners and Verizon Communications. The Motley Fool has a disclosure policy.

My Top 5 Ultra-High-Yield Dividend Stocks to Buy for April was originally published by The Motley Fool.