I Love Monthly Income: 2 Buys Up To 10% Yields

Retirement planning has changed dramatically over the years. Traditional pensions—once a cornerstone of financial security—are now rare outside of government and union jobs. In their place, workers must navigate the complexities of 401(k)s and personal investment accounts, making steady, reliable income harder to secure.

This shift has elevated the importance of fixed-income investments, particularly for retirees seeking stability and cash flow. As market uncertainty grows and interest rates drop, these income-generating assets will see renewed attention. Even investment giants like Vanguard are making bold moves into actively managed fixed-income strategies, citing overlooked opportunities and a vast, inefficient bond market that’s actually larger than the stock market.

Here are two preferred securities, designed to strengthen your fixed-income portfolio—and pay you monthly while doing it.

Pick 1: PFFA – Yield 10%

Virtus InfraCap U.S. Preferred Stock ETF (PFFA) is an ETF (Exchange-Traded Fund) that focuses on preferred equities. It sets itself apart from its peers in two ways:

1. PFFA is actively managed.

2. PFFA uses leverage.

   
   

PFFA's active management is key in an asset class that isn't always liquid. Instead of buying an investment solely because it is in an index, PFFA's management has the flexibility to be opportunistic and ensure they are buying or selling at attractive prices.

PFFA Fact Sheet

PFFA utilizes leverage, and is around 20% right now. Typically, management will target leverage in a range of 20-30%, but it will vary with market conditions. Leverage does have the impact of increasing volatility. When preferred prices come down, a leveraged fund will decline more than an unleveraged fund. On the other hand, when prices go up, a leveraged fund will rise more.

We view this dip as a buying opportunity because over longer periods of time, the excess performance that PFFA produces with its active management and leverage far outstrips other preferred ETFs, as seen from this comparison with its benchmark index, the iShares Preferred and Income Securities ETF (PFF).

PFFA pays a higher dividend on a monthly basis, has better long-term performance, and a management team that has navigated through challenging times for preferred equity. When preferred shares come down in price, PFFA is a go-to buying option for me.

Pick 2: GOOD Preferreds – Up To 7.5% Yields

Gladstone Commercial Corporation (GOOD) is an industrial property-focused REIT that reported Q1 core FFO of $0.34/share, flat sequentially, and covering its quarterly dividend of $0.30/share. During the three months of 2025, the REIT collected 100% of all outstanding base rents and ended the quarter with a portfolio of 141 properties, leased to 107 tenants across 20 industries. The portfolio's leases had an average remaining term of 6.8 years, offering long-term income visibility. Notably, ~53% of tenants hold an investment grade or investment grade-equivalent credit rating, supporting the stability and resilience of cash flows.

During the quarter, the company was active in acquisitions, purchasing six industrial properties in Texas, including a five-property industrial portfolio in Houston for $29.3 million with a 10-year lease term, and one industrial property in Dallas-Fort Worth for $44.0 million with an 11.3-year lease term. The total capital deployed for these industrial acquisitions was over $73 million, aimed at increasing the REIT's industrial concentration to position itself for the industrial shift from the U.S. trade policy.

GOOD reported a 6.6% YoY increase in same-store rents, and the REIT sold one office property for a gain of $377,000. GOOD maintains a 98.4% occupancy of $80.5 million in total liquidity (including $10.4 million in cash balance) with only 2.3% of its total debt maturing this year. Just 1.9% of the annualized base rent faces lease maturity this year.

• 6.625% Series E Cumulative Redeemable Preferred Stock (GOODN) – Yield 7.4%

• 6.00% Series G Cumulative Redeemable Preferred Stock (GOODO) – Yield 7.4%

  
  

GOOD’s perpetual preferreds continue to present attractive investments that pay generous monthly dividends. GOODO offers a 7.4% yield and ~23% upside to par.

Conclusion

At High Dividend Opportunities, we believe fixed income deserves a central role in every retirement-focused portfolio, especially in today’s uncertain environment. That’s why we allocate at least 40% of our portfolio to this asset class, combining the stability of diversified funds with the reliability of individual securities.

Our approach includes more than 50 individual preferred stocks, along with a carefully constructed bond ladder of over 20 positions. This mix allows us to balance risk, generate monthly income, and capture opportunities across changing interest rate cycles.

In a world where traditional pensions are nearly extinct and equity markets remain volatile, fixed income is no longer just a safe harbor—it’s a smart, income-driven strategy for long-term success.

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