Dividend yields can be like ladders: The higher you go, the scarier it gets. Many of us are more afraid of falling off an especially tall ladder than a shorter one. Many investors are more leery of ultra-high dividend yields because they're afraid the dividends could be in jeopardy.

However, some stocks that pay exceptionally juicy dividends aren't so scary. Here are three ultra-high-yield dividend stocks I recently bought and why I like them.

1. Dominion Energy

I initiated a position in Dominion Energy (D -0.07%) last year and increased my stake earlier this month. The company provides electricity to around 3.6 million homes and businesses across three states -- Virginia, North Carolina, and South Carolina. It also provides natural gas to roughly 500,000 customers in South Carolina. 

Dominion Energy's forward dividend yield is just a hair below 5%. Its payout ratio of 98.5% is high, but I think the dividend is relatively safe. The company should be able to deliver long-term operating earnings per share growth of between 5% and 7%, enough to comfortably keep the dividends flowing. Also, Dominion cut its dividend in 2020. I doubt that management wants to make shareholders angry again. 

This stock was a big winner throughout much of 2024, jumping around 25% at one point. However, the Federal Reserve's hints about making fewer interest rate cuts in 2025 caused Dominion's shares to pull back somewhat late in the year.

I think Dominion's long-term prospects are solid. All three states where the company operates have growing populations. Data centers should remain an especially key opportunity for Dominion, with Northern Virginia leading the world in data centers.

2. Pfizer

I've owned a relatively small position in Pfizer (PFE -0.72%) for several years, long enough to see huge gains during the height of the COVID-19 pandemic and a huge sell-off afterward. I bought more shares of Pfizer recently, though.

The drugmaker's forward dividend yield of over 6.5% factored into my purchase decision. I don't rely on dividends for income at this point, but such a high yield should make it easier for Pfizer to deliver double-digit-percentage total returns.

Pfizer's price was also right. The stock trades at less than nine times forward earnings. Its price-to-earnings-to-growth (PEG) ratio based on five-year earnings projections is a super-low 0.2, according to financial data and infrastructure provider LSEG. 

Candidly, I'm skeptical about that PEG multiple. It seems too low to me. However, I think Pfizer's growth prospects should be pretty good despite losing patent exclusivity for several products over the next few years. The company has a strong lineup of new products and a promising late-stage pipeline that I expect to contribute to growth over the rest of the decade.

3. United Parcel Service

United Parcel Service (UPS 1.29%) is a relatively recent addition to my portfolio. I first bought shares of the package delivery giant in August 2024. A few days ago, though, I added more shares of UPS.

Again, UPS' dividend was a big draw. The forward dividend yield currently stands at 5.13%. I also like the company's track record of 15 consecutive dividend increases and counting. But the dividend wasn't the only reason I bought more of this stock.

Sure, UPS stock has declined throughout much of the last three years, including falling roughly 20% over the last 12 months. However, I think UPS is poised to be a tremendous turnaround story. In the third quarter of 2024, the company returned to revenue and earnings growth. UPS has also moved past the period of significantly higher costs associated with its five-year agreement with the Teamsters Union. 

I applaud UPS CEO Carole Tomé's strategy of focusing on higher-margin packages. In particular, I view UPS' goal of becoming the world's top healthcare logistics provider as a smart move. This and other priorities should enable the company to grow its earnings more strongly over the coming years. When earnings rise, share prices usually follow.