If you’re looking to collect a steady income through your investments, high-yield dividend stocks are one of the most reliable paths available. The strategy is simple. Find companies that offer attractive dividend payouts and have the financial strength to sustain them.
Right now, Energy Transfer (ET) and Ares Capital (ARCC) are two stocks that offer high dividend yields of over 7% and have sustainable payouts. What makes these stocks even more reliable is that Wall Street analysts have assigned a “Strong Buy” consensus rating to them, signaling confidence in their ability to keep rewarding shareholders.
Energy Transfer is a reliable income stock, thanks to its sustainable and high yield of 7.6% and a solid history of increasing its dividend. This leading energy infrastructure company is well-positioned to benefit from rising demand for natural gas (NGV25) and natural gas liquids (NGL).
The company owns over 105,000 miles of natural gas pipelines, moving nearly 30% of U.S. production and serving around 200 gas-fired power plants. Its scale, storage capacity, and deep relationships with suppliers and customers give it a competitive advantage in capturing new growth opportunities.
Energy Transfer’s integrated business model, fee-based contracts, and high system utilization generate stable earnings and cash flow, supporting continued dividend growth. In April, it raised its quarterly payout by 3% to $0.3275 per share ($1.31 annually). Further, management expects long-term dividend growth of 3%–5% annually, backed by strong cash flows and new investments.
ET’s future growth will likely be driven by a robust pipeline of projects, most of which are already contracted with high-quality counterparties. These initiatives should begin contributing meaningfully to earnings in 2025, with benefits accelerating in 2026 and 2027. The company is targeting about $5 billion in organic growth projects for 2025, expected to deliver mid-teen returns.
Further, demand from data centers, LNG facilities, and power plants is providing additional momentum. Notably, Energy Transfer recently signed a long-term agreement to supply natural gas to CloudBurst’s new AI-focused data center in Central Texas — a capital-light deal with quick revenue impact.
With a growing project backlog and favorable market trends, Energy Transfer remains well-positioned to deliver reliable income and steady growth.
