I Am Swimming In Growing Dividends; Yields +6%

As the first half of 2025 draws to a close, global financial markets have navigated a period of intense volatility. News cycles have been dominated by unpredictable economic shifts, and investor emotions have been on a rollercoaster, reacting to every twist and turn in the market. This has been a tumultuous time for the global financial landscape.

Yet, there is something inherently calming about being an income investor. You get to ride the tides without anxiously following the news cycles. Time in the market is essentially cold, hard cash in your pockets, as those dividends keep flowing. The best part is that they keep growing predictably, helping you tackle the rising cost of living. At High Dividend Opportunities, we have seen 15 dividend or distribution raises so far this year across our portfolio, and our holdings are well-positioned to maintain reliable income through turbulent times.

Here are our top picks that recently delivered healthy payout increases.

Pick 1: UTG – Yield 6.8%

Reaves Utility Income Fund (UTG) is a utility-focused CEF (Closed-End Fund) whose holdings are historically lower risk and produce strong and growing dividend cash flows for its investors. The fund’s top holdings are some of the largest and well-known publicly traded utilities. Over its extended lifespan of more than two decades, UTG has not only provided strong income to its holders but also seen its NAV climb.

UTG operates with a ~17% leverage and actively manages its portfolio. This means that

any harvested capital gains or return of capital that may be paid out from time to time are not part of a destructive pattern towards the fund's NAV but instead are management decisions made over the long run to try and help the NAV stay stable or even grow with time.

We have been anticipating this for the past year, and UTG has finally delivered a 5.3% increase to its monthly distribution to $0.20 per share. The CEF’s current annual yield is 6.8%, and it trades at a modest discount to NAV.

Pick 2: BNS – Yield 5.8%

According to data from Fitch Ratings, Canadian banks ended 2024 with strong capital levels, with all banks ending the year with common equity Tier 1 (CET1) ratios above 13%. High CET1 ratios provide a buffer against credit defaults, market volatility, and other economic shocks, which helps maintain confidence in the banking system and ensures continued access to credit for businesses and consumers without needing government support.

The markets continue to operate amidst heightened fears around growing deficits, trade wars, and geopolitical tensions. Yet, having been around since 1833, Scotiabank (BNS) has been through them all. The fifth-largest bank in Canada has never missed a single dividend payment in almost two centuries.

Canada’s new government is focused on eliminating interprovincial trade barriers, building energy corridors, boosting the domestic defense industry, and diversifying the country’s trade relationships. A more interconnected Canadian economy would allow the big banks (including Scotiabank) to support the growth across sectors. The bank recently delivered a 4% YoY increase to its common dividend, which stands at a 5.7% annualized yield. Management has also received regulatory approval to repurchase 20 million shares, representing ~1.6% of the outstanding total. Readers may note that Canada’s sovereign debt carries AAA ratings from major firms like S&P and Morningstar DBRS. 

Conclusion

As we look ahead to the second half of 2025, uncertainty remains a constant in the markets, but your income doesn’t have to be. 2025 is expected to be another record year for dividend payouts, and we are tapping into this potential. While investors seem to get increasingly uncomfortable over market valuations and the direction of the economy, the simple truth is that you need cash to tackle your expenses, now and in retirement. UTG and BNS are just two examples of how quality income investments continue to reward patient shareholders with growing cash flows, even amid economic noise.

Our Income Method is built to generate sustainable, rising income that supports your needs today and secures your goals for tomorrow. Whether the market soars or stumbles, you’ll still get paid.