2 Monthly Payers Built For Volatility; Yields +9%

When uncertainty rises, discipline matters. With equity market valuations stretched and global risks compounding, investors don’t need more excitement, they need stability, income, and flexibility. 

Most investors resort to staying less invested in such market conditions, but hoarding cash isn’t the answer. Time in the market has always mattered more than timing the market, and time is poison for cash, only to be eroded slowly and painfully by inflationary pressures. Fixed income, due to its positioning higher up in the capital structure, stands to benefit as rates eventually move lower. This asset class continues to be undervalued, presenting a strong margin of safety in a richly valued market. 

We discuss two great picks for steady monthly income. This isn’t just for cash flow, it’s for optionality, allowing investors to stay defensively invested while time quietly enriches their pockets with cash. Let's dive in.

Pick 1. PDI – Yield 14.6%

PIMCO Dynamic Income Fund (PDI) is a diversified debt fund managed by PIMCO, one of the most prominent managers of bond funds in the world. Being a Closed-End Fund, PDI has two pieces that investors need to pay attention to – price and Net Asset Value.

A CEF with a strong total return on NAV is a boon for your portfolio, because NAV powers the distributions you receive. So when NAV rises and price drops, it's like buying more value for less – it is a bargain.

PDI's market price underperformed its NAV for the year. NAV has notably stayed strong through the year, with the exception of the jitters in April due to the tariff tantrum. Price stayed volatile, with notable collapse in April and October following the news of the First Brands bankruptcy and concerns over data center debt took center stage. NAV, which is less sentiment driven, stayed strong through the year.

Despite being a fixed-income focused fund, PDI has massively outperformed the high yield bond sector, thanks to active management by PIMCO through market volatility, and interest rate cycles.

PDI is now trading near a 5% premium to NAV, which is below its 5-year average, making it a buying opportunity in this high-quality, time-tested CEF. 

Pick 2. PFFA – Yield 9.4%

Also in the bargain bin lie preferred securities, also higher up in the capital structure and trading at discounted prices amidst elevated borrowing costs and market fears around credit delinquencies. 

Virtus InfraCap U.S. Preferred Stock ETF (PFFA) is a unique ETF in the preferred sector, as it is actively managed and uses leverage to accelerate returns. The result is a massive outperformance for this ETF against its passively managed index counterparts.

We remain bullish on preferred equity going into 2026 as yields remain elevated in many sectors. Since its inception in 2019, PFFA has delivered steady income for shareholders, and its current $0.17/share monthly pay reflects a 9.4% annualized yield.

Conclusion

In markets that feel fully priced, defense isn’t about retreat, it’s about positioning. Reliable monthly income provides an anchor, helping portfolios absorb volatility while staying prepared for opportunity. By focusing higher in the capital structure and leaning into assets positioned to benefit from eventual rate cuts, investors can remain patient, while getting paid to be ready to grab opportunities.m This way, you don’t have to remain fearful of the next correction, but stay hungry for it. This is the beauty of our Income Method at High Dividend Opportunities.