The S&P 500 (^GSPC +0.15%) index is offering a yield of just 1.1% today. That will not be high enough to satisfy most dividend investors. However, 4.2%, 5.7%, and a huge 9.4% are all dividend yields that will likely be pleasing to the ear. Here's a look at the companies that offer those yields: Bank of Nova Scotia (BNS 0.64%), W.P. Carey (WPC +3.00%), and Ares Capital (ARCC 0.64%), respectively.
They may not be suitable for all investors, but you are likely to find one or more that are worth adding to your portfolio right now.
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Bank of Nova Scotia is a low-risk turnaround
The average U.S. bank yields around 2.5%. Bank of Nova Scotia's yield is a far more compelling 4.2%. When a company's yield is out of line with its competitors, however, you have to ask why. In this case, the answer is that Bank of Nova Scotia, usually referred to simply as Scotiabank, is undergoing a turnaround.
What's notable here, however, is that this is not a high-risk endeavor. Scotiabank is one of the largest banks in Canada, a country with a highly regulated banking industry. Scotiabank is one of a small number of large banks that basically have entrenched industry positions. It has a very strong foundation, and it has paid dividends every year since 1833.
NYSE: BNS
Key Data Points
The problem with Scotiabank is that it chose to expand into Central and South America, while its Canadian peers expanded into the U.S. That was a mistake, and management is now working to realign its business so it can compete better with its peers. That basically means exiting less desirable markets and focusing on Mexico, the U.S., and Canada. The Canadian financial giant has already made significant progress in this effort, so even more conservative investors will find it attractive.
A $2,000 investment in Scotiabank will allow you to buy 26 shares.
It's back to growth for W.P. Carey
In late 2023, net lease real estate investment trust (REIT) W.P. Carey surprised investors with a dividend cut. Management made the tough call to exit the struggling office sector in one quick move, which necessitated a dividend reduction. The quarter after the reset, however, the dividend started to increase again. It has been increased every quarter since, which was the pace that existed before the cut.
Ultimately, the business reset was made from a position of strength, not weakness. In fact, W.P. Carey is one of the most diversified REITs you can own, with assets across the warehouse, industrial, and retail sectors and properties in both the U.S. and Europe. Under the net lease structure, tenants assume responsibility for almost all property costs, including maintenance, taxes, and insurance. Despite the dividend cut, the stock's 5.7% dividend yield is very well supported.
NYSE: WPC
Key Data Points
That said, the real story here is growth. The office exit left W.P. Carey with a material cash hoard to reinvest in new properties. It has done so, and growth has picked up nicely, with adjusted funds from operations (FFO) rising a very attractive 5.9% year over year in the third quarter of 2025. The company even upped its full-year 2025 financial projections based on its strong performance. The mix of yield and growth here should entice most investors, even those who have a lower risk tolerance.
A $2,000 investment in W.P. Carey will net you about 31 shares.
Ares Capital is good at what it does
Ares Capital has the highest yield on this list, at 9.4%. That is a giant yield on an absolute basis, but it isn't out of line with the company's business development company (BDC) peers. In fact, you could easily find BDCs with higher yields. However, Ares Capital happens to be one of the largest and most respected BDCs you can buy.
The BDC sector is one that only the most aggressive investors should get into. The core of the business model is making high-interest-rate loans to smaller companies, which is an inherently risky endeavor. During recessions, smaller companies tend to struggle more than larger ones. Add in high-interest-rate debt, and BDCs often have to deal with a lot of loans that aren't being paid during economic downturns. To give an idea of the interest rates BDCs charge, Ares Capital's average loan rate was 10.6% in the third quarter of 2025.
NYSE: ARES
Key Data Points
The big takeaway here is that Ares Capital's dividend can be highly volatile. It ended up being trimmed during each of the past two recessions. Still, the goal is to pass income on to investors, and the dividend tends to be quite attractive, even during economic weak patches. If you can handle some income volatility, Ares Capital has proven to be a resilient dividend stock.
The very high dividend yield is compensation for the inherent risk of dividend cuts. The real story here, however, is that if you are looking at BDCs, buying Ares Capital is probably one of the best choices you can make in the sector.
A $2,000 investment in Ares Capital will get you about 95 shares.
You don't have to settle for 1.1%
Ares Capital's huge 9.4% yield is proof that you don't have to settle for the tiny yield currently offered by the S&P 500. However, if you are trying to maximize yield, you will have to make risk versus reward trade-offs. Bank of Nova Scotia is likely the lowest-risk choice here, as the bank gets its business back in line with its peers. W.P. Carey is somewhere in the middle risk-wise, but after a dividend reset, the REIT's growth is starting to pick up. And Ares Capital operates in the high-risk BDC sector but has a very successful track record within the industry for those with a high risk tolerance.
