High-Yield Dividend Stocks Worth Considering: A Guide to Building Your $2,000 Portfolio

Why Settle for Mediocre Returns?

The broad market’s current dividend offerings are underwhelming. At just 1.1%, the S&P 500 index leaves income-focused investors wanting more. Yet the financial markets offer several best stocks to buy now that deliver substantially higher payouts—namely yields of 4.2%, 5.7%, and an impressive 9.4%. These three securities represent different risk profiles and growth trajectories, each deserving consideration for disciplined investors seeking meaningful income generation.

Understanding the Risk-Return Tradeoff

Before diving into specific opportunities, it’s crucial to recognize that elevated yields typically compensate for elevated risks. The three holdings examined here span the spectrum from conservative to aggressive, allowing investors to calibrate their portfolio construction based on personal tolerance thresholds.

Bank of Nova Scotia: Conservative Stability in Transition

Scotiabank trades at NYSE: BNS with a compelling 4.2% dividend yield—significantly above the typical 2.5% average for U.S. banking institutions. This premium reflects the market’s current skepticism about the company’s strategic repositioning.

The Canadian financial powerhouse is executing a deliberate business restructuring. For decades, Scotiabank pursued expansion into Central and South American markets while competitors focused on U.S. growth. Management has recognized this strategic misalignment and is now concentrating operations on Mexico, Canada, and the United States—markets better aligned with peer operations.

What distinguishes this situation from typical distressed scenarios is Scotiabank’s foundational strength. As one of Canada’s largest banks operating within a highly regulated industry, the institution benefits from entrenched competitive positioning. Critically, the company has maintained uninterrupted dividend payments since 1833—a testament to operational resilience through multiple economic cycles.

The turnaround remains low-risk relative to equity market opportunities. A $2,000 allocation would provide approximately 26 shares, offering exposure to a financially sound institution navigating manageable operational changes.

W.P. Carey: Recovery and Renewed Growth Momentum

The net lease REIT (NYSE: WPC) experienced investor disappointment in late 2023 when management announced a dividend reduction. However, this decision reflected strategic strength rather than weakness. The company deliberately exited the struggling office real estate sector in one decisive move, accepting short-term dividend pain for long-term business quality.

The subsequent recovery has been noteworthy. Quarterly dividend increases resumed immediately following the reset and have continued uninterrupted—matching the historical cadence prior to the cut. The current 5.7% yield enjoys solid support from operational fundamentals.

W.P. Carey’s portfolio diversity strengthens its investment appeal. Properties span warehouse, industrial, and retail sectors across U.S. and European markets. The net lease structure transfers maintenance, property tax, and insurance responsibilities to tenants—reducing operational volatility.

The growth narrative provides additional excitement. Cash preserved from the office exit has been redeployed into accretive property acquisitions. Adjusted funds from operations rose 5.9% year-over-year in Q3 2025, with management raising full-year guidance based on robust execution. This combination of current income and capital appreciation potential appeals to investors across risk profiles.

A $2,000 investment captures approximately 31 shares of this REIT.

Ares Capital: Maximum Income for Aggressive Investors

Ares Capital (NYSE: ARCC) represents the most aggressive option, offering a 9.4% dividend yield that reflects both opportunity and substantial risk. This payout aligns with peers in the business development company (BDC) sector, where yields frequently exceed 9%.

BDCs operate under a specialized business model: originating high-interest-rate loans to smaller, less-creditworthy companies. During Q3 2025, Ares Capital’s portfolio averaged loan rates of 10.6%—illustrating the premium pricing required to compensate lenders for default risk.

Economic downturns create significant challenges within this sector. Smaller borrowers face disproportionate pressure during recessions, particularly when servicing elevated debt burdens. Consequently, Ares Capital’s dividend has been reduced during each of the past two recessionary periods. Income volatility represents the defining characteristic of BDC investing.

Yet the company has earned reputation as one of the sector’s most capable operators. Despite inherent business model risks, Ares Capital has demonstrated superior execution capabilities relative to BDC peers. For investors with genuine high-risk tolerance and the capacity to weather income fluctuations, this security offers resilience within its category.

A $2,000 position would yield approximately 95 shares.

Constructing Your Portfolio: Final Considerations

The choice among these best stocks to buy now depends on individual circumstances. Scotiabank offers conservative income with manageable transition risk. W.P. Carey provides yield alongside rekindled growth prospects. Ares Capital delivers maximum current income for those comfortable with cyclical volatility.

Rather than viewing these as competing alternatives, consider them components of a diversified income portfolio. Each occupies a distinct risk-return position, allowing investors to construct allocations matching specific financial objectives and personal risk tolerance.