As retirees look for smart ways to boost their income in 2025, ultra-high yield dividend stocks are back in the spotlight.
With interest rates stabilizing and inflation cooling, income-seeking investors can find better risk-adjusted returns in carefully chosen dividend-paying equities—especially those offering yields above 6%, or even double digits, without sacrificing long-term viability.
But tread carefully: not all high-yielders are created equal. A sustainable payout, a solid balance sheet, and resilient cash flows are key. We’ve rounded up some of 2025’s best ultra-high yield dividend stocks that check those boxes, ideal for retirees wanting to stretch their nest egg.
🏆 1. Ares Capital Corporation (ARCC)
-
Dividend Yield: ~9.6%
-
Sector: Financials (Business Development Company)
Ares Capital remains a darling for income investors, and for good reason. As a business development company (BDC), ARCC is legally required to pay out 90% of taxable income as dividends, making it a consistent high-yielder. The company specializes in lending to middle-market businesses, a niche often underserved by traditional banks. In 2025, it continues to benefit from higher interest rates on floating loans while maintaining a conservative underwriting approach.
Why Retirees Like It: Monthly income, reliable track record, and experienced management navigating credit cycles.
💡 2. Enterprise Products Partners (EPD)
-
Dividend Yield: ~7.3%
-
Sector: Energy (Midstream MLP)
Enterprise Products is a master limited partnership (MLP) with a reputation for rock-solid distributions and disciplined growth. As a midstream player, EPD isn’t as sensitive to commodity prices as upstream producers. It benefits from long-term contracts transporting and storing natural gas, NGLs, and crude oil. In 2025, the energy transition continues, but fossil fuels remain critical—and EPD is cashing in.
Why Retirees Like It: Generous and growing payouts, tax-advantaged structure, and inflation-protected revenue streams.
🏥 3. Medical Properties Trust (MPW)
-
Dividend Yield: ~12.1%
-
Sector: Real Estate (Healthcare REIT)
Medical Properties Trust has been under scrutiny in recent years, but it’s made significant progress in 2024-25 reducing leverage and restructuring its tenant base. It owns hospital properties worldwide, and demand for healthcare facilities remains stable. While this pick comes with some volatility, the risk/reward profile has improved, making it a compelling income play for retirees willing to accept a bit more risk for higher yield.
Why Retirees Like It: Massive yield, recession-resistant healthcare exposure, potential rebound upside.
🛢 4. ONEOK Inc. (OKE)
-
Dividend Yield: ~6.1%
-
Sector: Energy (Natural Gas Infrastructure)
ONEOK has emerged as a leader in natural gas liquids (NGL) infrastructure, with significant growth via acquisitions and organic projects. Its cash flows are largely fee-based, making its dividend highly reliable. In a world increasingly demanding clean energy, ONEOK’s role as a natural gas transporter makes it a strong bridge player in the energy transition.
Why Retirees Like It: Strong cash generation, dividend growth potential, and relative stability.
🏢 5. Realty Income Corporation (O)
-
Dividend Yield: ~5.6% (but monthly payouts)
-
Sector: Real Estate (Retail/Industrial REIT)
Although its yield isn’t as high as others on this list, Realty Income earns its place with consistency and a rare monthly dividend. Known as “The Monthly Dividend Company,” O is beloved by retirees for its reliable income stream. Its portfolio of triple-net leases spans everything from Walgreens to FedEx, providing sector diversity and recession resilience.
Why Retirees Like It: Monthly paychecks, consistent performance, blue-chip REIT quality.
📊 Honorable Mentions:
-
Annaly Capital Management (NLY) – A high-yield mREIT that’s rebounded in 2025, but carries interest rate risk.
-
Altria Group (MO) – Yielding above 8%, still a cash machine, but faces ESG headwinds.
-
SL Green Realty (SLG) – For aggressive retirees, this NYC office REIT has a huge yield and turnaround potential.
Final Thoughts: Chasing Yield, Wisely
In 2025, high-yield dividend stocks can be a key pillar of a retiree’s income strategy. But remember, ultra-high yields often come with added risks. Diversify across sectors, monitor payout ratios, and ensure you’re not just chasing the biggest number on the screen.
Tip: Reinvest some dividends during bull runs and keep a cash buffer to avoid forced selling during downturns.
Retirement isn’t just about preserving wealth—it’s about generating income with peace of mind. These ultra-high yield dividend stocks could help you do both.
