Dividend stocks with high and sustainable yields have long been a trusted avenue for generating reliable passive income. Companies that pay consistent dividends offer investors stability, growth potential, and a commitment to increasing payouts over time. This combination makes them an appealing choice, especially when seeking to protect income from economic uncertainty and falling interest rates.

With this in mind, Ares Capital (ARCC) and Enterprise Products Partners (EPD) look attractive among the top dividend-paying stocks. These companies boast fat yields and have strong business models that position them to maintain and potentially increase their dividend payments in 2025. Their resilient earnings and proven track records make them compelling options for investors looking to future-proof their income. Plus, they stocks have earned love from analysts. 

Dividend Stock #1: Ares Capital

Ares Capital (ARCC) is a compelling stock for investors seeking a high and dependable yield in 2025. As a leading specialty finance company, Ares Capital provides direct loans and other investment solutions to private middle-market companies across the U.S. The company focuses on investing in high-quality borrowers and companies with solid income-generating capabilities. This approach positions ARCC to enhance its shareholder value through solid dividend payouts.

Operating across multiple sectors, Ares Capital focuses primarily on less cyclical industries, which provides a buffer against market volatility. Further, its solid underwriting capabilities and strong balance sheet, bolstered by significant liquidity and moderate leverage, offer the financial flexibility required to capitalize on growth opportunities.

The current environment presents significant tailwinds for ARCC. A more active deal market, driven by higher mergers and acquisitions (M&A) and growing private equity sponsor participation, is a positive catalyst for the company’s future performance. With private equity managers benefiting from lower rates while facing increased pressure to return capital to their investors, direct lenders like Ares Capital play an integral role in financing leveraged buyouts. In the third quarter, overall M&A volume accelerated, particularly among sponsor-backed transactions. Direct lenders supported nearly half of the loan volume associated with buyouts.

Ares Capital’s solid relationships with private equity sponsors provide a distinct advantage in navigating this competitive environment. Its focus on strategic transactions in defensive industries with strong secular trends enhances its ability to identify quality opportunities while minimizing risk.

Notably, the company focuses on companies that are in its existing portfolio. By focusing on businesses it already knows well, it better manages risk and delivers stronger credit results. In Q3, over 75% of its new commitments went to existing borrowers.

Ares Capital maintains a strong credit profile, reflected through declining nonaccrual rates, which remained well below industry averages. Encouragingly, its portfolio companies have demonstrated steady financial strength, with low-double-digit LTM EBITDA growth reported for the third consecutive quarter.

Overall, Ares Capital is well-positioned to deliver solid growth and return higher cash to its shareholders via dividend distributions in 2025. It currently offers a compelling yield of about 9%. Further, Wall Street analysts have a “Strong Buy” consensus rating on the stock.

Dividend #2: Enterprise Products Partners

Enterprise Products Partners (EPD) is another top stock for generating a high yield in 2025. The company provides midstream energy services and connects crude (CBG25) and natural gas (NGF25) producers to some of the largest supply basins, domestic consumers, and international markets.

The company’s payouts are supported by its recession-resistant business, which earns steady demand by providing essential infrastructure services to energy producers and consumers. Additionally, about 90% of the company’s long-term contracts include escalation clauses that offset inflation impacts. This safeguards its cash flow and enables EPD to maintain and grow its dividends.

Thanks to its stable cash flows and consistent distribution income growth, Enterprise Products has increased its dividend for 27 years in a row. Further, the company is focusing on growing its cash flow per unit and investing in midstream energy infrastructure with attractive returns. Both initiatives are likely to bolster its future dividend payouts.

Notably, the company is on track to complete two new processing plants in the Permian Basin. These plants are expected to generate new cash flow streams and support its growth.

Adding to its growth story, Enterprise recently completed the acquisition of Piñon Midstream. These assets enhance the company’s footprint in the Permian Basin by addressing infrastructure gaps, such as sour natural gas treatment and acid gas injection capacity. The Piñon acquisition is also a strategic boost to Enterprise’s core natural gas liquids (NGL) value chain, which spans the entire process from the wellhead to end markets.

Enterprise Products Partners has a strong balance sheet and significant financial flexibility, which position it well for continued distribution growth. This financial strength and its resilient business model make it an attractive long-term investment.

Enterprise Products Partners has a “Strong Buy” consensus rating, and offers a high yield of about 6.7%.