Whenever you spend money, you're not just buying a product—you're buying the experience, benefit, or feeling it brings. This is why advertisers rarely focus solely on the product itself. Coca-Cola, for instance, doesn’t market just soda; it sells the joy, connection, and shared moments it represents. Similarly, if you're promoting a hammer, you wouldn't just highlight its features—you'd focus on what it helps create: a sturdy home, a meaningful project, or a job well done.
The same principle applies when it comes to investing. It's not just about buying stocks; it's about what those investments enable you to achieve. I'm a firm believer in using the market as a tool to realize goals and dreams. That’s the foundation of my Income Method, which emphasizes generating consistent, reliable income through dividends. When you invest, you're purchasing a stream of income that can support you for years to come.
Today, we’ll explore two standout dividend opportunities that can help you build that income stream for decades. Let’s dive in!
Pick 1: JPC – Yield 9.9%
Nuveen Preferred & Income Opportunities Fund (JPC) is a financial-sector-focused CEF with a distinct difference. This fund maintains a 91% allocation to institutional preferreds ($1,000 par value) that are relatively difficult for the average investor to access and trade. JPC is diversified across 297 holdings, with 80% of its assets invested in diversified banks, capital markets, insurance firms, and regional banks. Source
Fact Card
~55% of JPC’s assets are U.S.-based securities, and 81% of its holdings are rated investment-grade, indicating the overall creditworthiness of the underlying issuers and the safety of the income stream. ~88% of JPC’s holdings are either fixed-rate or fixed-to-fixed with a well-staggered call exposure, providing protected income through declining interest rates.
Author's Calculations
JPC has opted for a more aggressive distribution strategy, increasing 40% in June and paying out 9.9% of NAV annually. Its current monthly distribution calculates to a 9.9% annualized yield, and the fund trades at par with NAV.
JPC operates with a 37.5% leverage, which carries a floating interest rate of Overnight Bank Funding Rate (OBFR) plus 0.85%. This means that the fund is well-positioned to generate more cash available for distributions as we experience more interest rate cuts.
Pick 2: RVT – Yield 7.7%
Royce Small-Cap Trust (RVT) is a CEF (Closed-end Fund) that has been specializing in small caps for decades. RVT has outperformed the Russell 2000 since its inception in 1986. The reality is that home runs are fun, but it is consistent base hits that win. RVT is the king of slow and steady base hits. Here is RVT's comparison to the S&P 500 Russell 2000 from 1998:
It didn't rocket up. It consistently outperformed by just a little bit, which over the years resulted in a significant excess gain. Our stock selection is limited to companies that pay a dividend, which many small-caps do not. RVT invests in many companies that aren't even on our radar as possible investments.
For us, this means that RVT improves the diversification of our portfolio. Additionally, RVT meets our income goals with a variable dividend policy. RVT's dividend policy is to pay out 7% of NAV based on the trailing four quarters. As a result, the dividend changes, but it changes slowly. One good or one bad quarter doesn't make a huge difference since the prior three quarters are also averaged into the calculation. The CEF recently announced a massive $0.44/share dividend for Q4, a 57% sequential increase, although this bump is typically expected during the fourth quarter as it is the time when RVT pays out its capital gains for the year.
We get income, diversification, historical outperformance, and the opportunity to buy it at a discount. Those are four great reasons to have RVT in your portfolio.
Conclusion
Income is essential in retirement. A portfolio full of impressive companies might look great on paper, but if it doesn’t generate income, it won't meet your needs. It’s like owning a luxury car with no fuel—nice to look at but not practical. With JPC and RVT, we can access securities that are typically inaccessible to retail investors or may not suit our needs due to the lack of consistent dividend payments.
At High Dividend Opportunities, we focus on creating steady cash flow, ensuring your portfolio works for you, not the other way around. That’s the power of income investing—and the heart of the Income Method.
We're offering a limited-time 30% discount on our annual price of $599.99 via this link only:
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Stop wondering if you will have the income you need in retirement; start growing your income stream now. We are the largest community of income investors and retirees, with over 8,000 members. Our "Model Portfolio" targets a +8% yield, with the highest and safest dividend stocks, preferred stocks, and bonds. This service is ranked #1 in dividends, income, and retirement. If you are looking for high, sustainable income, you have come to the right place!
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