Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTMatt DiLallo, The Motley FoolSun, June 28, 2026 at 9:20 PM GMT+2 5 min readMost stocks don't offer very appealing dividends these days, with the yield on the S&P 500 near a multi-decade low at around 1%. Investors seeking a higher yield often need to take on more risk, including the greater likelihood of a future dividend cut.However, there are some lower-risk, higher-yielding investment options out there if you know where to look. Here are three companies yielding over 8%. Those high yields could enable investors to turn $1,000 into a lucrative passive income stream that could last a lifetime.Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »Image source: Getty Images.Starwood Property TrustStarwood Property Trust (NYSE: STWD) is a real estate investment trust (REIT). These entities must distribute at least 90% of their taxable income to investors to comply with IRS regulations. As a result, most REITs have higher yields. Starwood's is currently around 11.5%. At that rate, a $1,000 investment would generate $115 in annual dividend income.The REIT has never cut its dividend since its 2010 IPO and has maintained its current payment level since 2014. One of the keys driving Starwood's dividend durability is its diversification. The mortgage REIT invests in commercial real estate-backed loans (52% of its portfolio), infrastructure loans (10%), residential loans (8%), and several other assets (10%). It also has a growing portfolio of owned properties (20%).Starwood's latest diversification move was the acquisition of the net-lease real estate platform Fundamental Income Properties for $2.2 billion last year. It owns an expandable portfolio of properties secured by long-term leases (a 17-year weighted-average lease term and 2.2% average annual rent escalations). This platform will provide Starwood steadily rising income to support its high-yielding dividend.Main Street CapitalMain Street Capital (NYSE: MAIN) is a business development company (BDC). Like REITs, BDCs must distribute at least 90% of their taxable income to comply with IRS regulations. As a result, they typically offer high yields.Main Street meets this requirement by paying two dividends. The BDC pays a monthly dividend set at a sustainable level. As a result, Main Street has never reduced its monthly dividend. Instead, it has increased this payment 160% since its 2007 IPO, including for the last 12 quarters in a row. Additionally, Main Street periodically pays supplemental quarterly dividends to reach its required payout ratio. It has paid a supplemental dividend for 19 straight quarters. At the current annualized rate of these two payments, Main Street yields more than 8.5% at its recent share price.Terms and Privacy PolicyEU DSA contactPrivacy & Cookie SettingsMore Info