3 Ultra-High-Yield Dividend Stocks to Buy in August (1 Yields Over 13.5%)

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Ultra-High-Yield Dividend Stocks: Worth the Risk?

Examining three US-listed high-yield dividend names and their relevance for income-seeking South African investors.

These US dividend plays—AGNC, Ares Capital, and Western Midstream—offer tempting yields north of 8%, with AGNC knocking 13.5% out of the park. But the catch lies in their structures. AGNC banks on mortgage-backed securities, a niche sensitive to interest rates and credit risk, while Ares is a business development company lending to mid-sized firms—a riskier credit bet. Western Midstream, operating long-term energy infrastructure contracts, is more predictable but tied to energy demand and commodity cycles. For South African investors hunting yield, the USD/ZAR should be a starting point. A weaker rand inflates rand returns here but adds FX risk. Locally, counterparts like Sanlam and Absa offer steadier dividends but at lower yields—trade-offs are inevitable. If you want to chase high income, position size matters to avoid being rocked by shocks like rising US rates or credit issues. Don't chase blindly; these stocks require active monitoring and a clear exit strategy. this is just our opinion and not financial advice