3 Top Dividend Stocks to Buy in November

The article identifies three dividend stocks with favorable prospects for investors: Ares Capital (ARCC), Energy Transfer (ET), and United Parcel Service (UPS). Ares Capital, a business development company with a 9.4% yield, is experiencing a significant acceleration in transaction volumes and benefiting from a robust M&A market and the increasing reliance on private lenders. Energy Transfer, a midstream master limited partnership yielding 7.9%, is positioned for growth due to surging natural gas demand from AI-driven data centers, supported by strong distributable cash flow and an attractive valuation. UPS, with a 6.8% yield, reported a strong rebound in Q3 free cash flow, improved U.S. operating margins by strategically reconfiguring its operations, and anticipates a potential dividend increase, despite some remaining tariff-related uncertainties.

Analysis

Ares Capital (ARCC) presents a compelling income opportunity with a 9.4% forward dividend yield, backed by 65 consecutive quarters of dividend stability. CEO Kort Schnabel reported a "noticeable acceleration" in Q3 2025 transaction volumes, indicating a booming M&A market. As the largest publicly traded BDC with a high credit rating, ARCC is strategically positioned to benefit from increased private lending demand.

Energy Transfer (ET) provides a 7.9% forward distribution yield, with management projecting 3-5% annual growth, supported by ample distributable cash flow. The AI boom is driving substantial natural gas demand for data centers, positioning ET's extensive pipeline and storage infrastructure for significant capacity expansion. Its attractive valuation, at 9.7x forward earnings and 7.9x EV/EBITDA, makes it a compelling midstream energy play.

United Parcel Service (UPS) showcased a strong Q3 free cash flow rebound, with CFO Brian Dykes expecting similar Q4 performance and hinting at a dividend hike. Strategic efforts to reduce lower-margin Amazon volumes and operational reconfiguration have improved U.S. operating margins and exceeded revenue/earnings expectations. While some tariff impacts persist for SMBs, a potential favorable Supreme Court ruling could accelerate its turnaround.

Key Decisions for Investors

• Consider Ares Capital (ARCC) for its high, stable dividend yield and exposure to accelerating private credit market activity, monitoring M&A trends.
• Evaluate Energy Transfer (ET) for its growth potential driven by AI-induced natural gas demand and its attractive valuation, while assessing MLP-specific tax implications.
• Monitor United Parcel Service (UPS) for continued free cash flow improvement and operating margin expansion as its strategic realignment progresses, particularly regarding tariff resolutions and their impact on future guidance.