2 Must-Own Dividend Opportunities

Whenever I prepare for a trip, I always make sure I have the essentials.

For international travel, nothing is more important than your passport. You might forget a charger or a change of clothes — and replace those easily — but without your passport, you're going nowhere. It’s the single item that proves your identity and allows you to cross international borders legally. You can buy anything else you need along the way, but the journey doesn’t even begin without that document in hand.

In many ways, a retirement portfolio works the same way. Over time, you'll own a wide variety of investments — some for a season, others for a reason. But there are a few core holdings so vital that they become non-negotiable. They’re your financial passport: must-own investments that help you navigate retirement smoothly, no matter what comes your way.

At High Dividend Investing, we specialize in building income-focused portfolios, and certain investments have earned a permanent place in our strategy. These are holdings we rarely sell, because their income remains reliable, generous, and vital — year after year.

Today, I want to share two of these must-own retirement investments that can help take your income to new heights.

Let’s dive in.

Pick 1: ET – Yield 7.7%

Energy Transfer (ET) is one of the largest and most diversified midstream energy companies in North America, transporting the oil and gas products across the country and to export terminals. The midstream MLP establishes long-term fee-based contracts with credit-worthy Exploration & Production firms, cushioning its revenues from commodity price fluctuations.

Weaker oil prices and demand do not affect ET's immediate financials, since companies need to pay regardless of whether they utilize the committed volumes or not. However, reduced demand weakens midstream firms in new contract negotiations; if customers are producing and transporting less, they may be less willing to commit to long-term capacity reservations in the future, or may seek lower rates due to decreased market activity. A prolonged recession can also affect the fundamentals (i.e., the credit-worthiness) of ET's customers to be able to make the committed payments.

ET ended Q4 with $312 million in cash and cash equivalents and maintains an investment grade BBB balance sheet. The MLP does carry higher debt than Enterprise Products Partners (EPD), between 4.0-4.5x EBITDA, but remains in a strong position to acquire additional midstream assets at discounted prices in such a recession, to pave the way for inorganic growth through the weak economy.

Pick 2: RNP – Yield 8%

Cohen & Steers REIT & Preferred Income Fund (RNP) is a CEF (Closed-End Fund) that has a unique portfolio. RNP invests approximately half of its capital in property REITs and the other half in preferred equity. This combination creates a very diversified portfolio of investments that provide dividends and price appreciation.

RNP's REIT portfolio is concentrated, with its top 10 holdings accounting for over 29% of the total fund. These are holdings that are the highest quality REITs in their respective sectors. On the preferred side, RNP diversifies beyond REITs. While many REITs do issue preferred equity, RNP has opted to focus on banking, utility, and insurance preferred.

As a result, RNP's preferred portfolio doesn't overlap with its common equity portfolio. Both REITs and preferred shares have experienced lower share prices due to high interest rates depressing the values of many income-producing investments. Looking forward, both types of investments have the potential for a strong recovery even as the turmoil continues in world trade. RNP's combination will provide investors with strong income and could be a real winner on price in the coming years.

Conclusion

With ET and RNP, we have two outstanding income-producing investments that belong in any retiree’s portfolio. ET offers exposure to the essential backbone of America’s energy infrastructure, providing a high, consistent yield that’s backed by real cash flow from real assets. Meanwhile, RNP gives you diversified access to high-quality real estate and preferred securities — sectors that are built to endure and thrive, especially when markets become volatile.

Both of these are must-own investments for income-focused investors. They provide the financial passport to enjoy your retirement without constantly worrying about what the market is doing today, tomorrow, or next year.

Retirement isn’t about chasing the flashiest stocks. It’s about building a portfolio that works for you — one that reliably pays you every month, so you can focus on what truly matters. Whether that means exploring the cobblestone streets of Europe, going off-grid in the Rockies, or simply enjoying quiet mornings with a good cup of coffee and no alarm clock…. the key is having the freedom to choose.

And that freedom comes from steady, reliable income.

That’s the power of my Income Method — designed to deliver peace of mind, month after month. Keep the thrills in your retirement lifestyle, not in your portfolio.

We invite you to take a One-month $49 trial* on our service. It is the #1 Service for Income Investors and Retirees. By taking the trial, you will have access to our model portfolio targeting a +9% yield by investing in dividend stocks, bonds, and preferred stocks. Test it for yourself, I am confident that you will like it!:

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