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.

Dividend Stock #1: Energy Transfer

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.

In short, ET’s high yield, fee-based earnings, a robust pipeline of projects, and a “Strong Buy” consensus rating from analysts make it an appealing choice for investors seeking steady passive income.

Dividend Stock #2: Ares Capital

Similar to Energy Transfer, Ares Capital is another reliable dividend stock offering a high yield of about 8.6%. This business development company focuses on providing direct loans and private financing to middle-market companies in the U.S., a segment often overlooked by big banks. This creates steady demand for its services while opening up attractive growth and income opportunities.

The company’s earnings and payouts are supported by its broad portfolio, disciplined risk management, and strong underwriting practices. Moreover, by lending primarily to less cyclical, service-oriented businesses with solid fundamentals, Ares Capital reduces exposure to market swings and policy risks while ensuring stability in earnings. This strategy has supported its long record of dependable dividends.

In the second quarter of 2025, Ares Capital reported core earnings of $0.50 per share, supported by resilient credit quality and historically low levels of nonaccrual loans. Its balance sheet stayed conservatively leveraged, giving the company ample flexibility to pursue new opportunities.

Notably, ARCC has maintained and even increased its dividend for 16 consecutive years. With its core earnings consistently exceeding payouts and potential upside from future portfolio gains, Ares Capital could maintain and grow its dividend, making it a compelling choice for income-focused investors. Wall Street maintains a “Strong Buy” rating on Ares Capital stock.