Investment guru Warren Buffett has recently revealed that he owns two ultra-high yield dividend stocks, Ares Capital and Verizon, which he believes are great choices for income investors [519d8ffe]. Ares Capital (NASDAQ: ARCC) offers a forward dividend yield of over 8.9% and has a stable dividend history. The company specializes in providing financing solutions to middle-market companies and has a diversified portfolio. However, Ares Capital also faces risks, such as the possibility of loan defaults in its portfolio companies. Despite this, the company has a strong underlying business and an attractive valuation, making it an appealing option for investors seeking high dividend yields [519d8ffe].
Verizon (NYSE: VZ) is another ultra-high yield dividend stock that Warren Buffett owns. The company has a forward dividend yield of over 6.4% and has increased its dividend payout for 17 consecutive years. Verizon is a telecommunications giant with a strong market position and a wide range of services. However, the telecom industry is highly competitive, and Verizon faces challenges in maintaining its market share. Despite this, the company has a solid underlying business and an attractive valuation, making it an attractive choice for income investors [519d8ffe].
In addition to Ares Capital and Verizon, there are several other high-yield Dow Jones stocks worth considering for investment. Chevron Corporation (CVX) offers a dividend yield of around 4.7% and is investing in renewable energy projects. IBM Corporation (IBM) has a dividend yield of approximately 5.2% and focuses on high-growth areas like cloud computing and AI. 3M Company (MMM) has a dividend yield of around 5.0% and a diverse product portfolio. Dow Inc. (DOW) has a dividend yield of approximately 5.5% and benefits from increased demand for its materials and chemicals. Walgreens Boots Alliance (WBA) has a dividend yield of around 4.9% and is well-positioned for future growth in the healthcare sector. Coca-Cola Company (KO) has a dividend yield of approximately 3.0% and focuses on expanding its product portfolio. Johnson & Johnson (JNJ) has a dividend yield of around 2.8% and a diverse product portfolio. Procter & Gamble Co. (PG) has a dividend yield of approximately 2.5% and focuses on cost-efficiency and strategic investments. Caterpillar Inc. (CAT) has a dividend yield of around 2.3% and benefits from increased demand for its equipment in global infrastructure projects [3ee92f65].
Both Ares Capital and Verizon are well-positioned to continue paying and growing their dividends. However, investors should be aware of the risks associated with these investments, such as loan defaults for Ares Capital and competition in the telecom market for Verizon. It is always advisable to conduct thorough research and consult with a financial advisor before making any investment decisions [519d8ffe].