The Quiet Power of Reliable Income

The financial markets are always governed by changing circumstances. Markets rotate, narratives change, and forecasts are achieved, prices soar, forecasts fail, prices plunge. The only thing that endures and remains stable is cash flow. 

At High Dividend Opportunities, our Core Portfolio has delivered an average YTD gain of 9.3%, beating the market indices by far, while producing steady distributions. Long-term income is not built by chasing what is fashionable, but by owning well-managed securities that generate reliable cash across market cycles. These two picks represent assets that are designed to pay investors through uncertainty, not just when conditions are perfect. Let’s dive in!

Pick 1: AWP – Yield 11.5%

Abrdn Global Premier Properties Fund (AWP) is a focused global REIT closed-end fund with roughly $380 million in assets and a concentrated portfolio of high-quality property owners. Like much of listed real estate, the fund was pressured by the Fed’s rapid rate hikes, amplified by its use of floating-rate leverage.

That headwind is now easing. Leverage is currently modest at ~8%, well below historical norms, and borrowing costs are directly tied to SOFR, allowing immediate benefit as rates decline. Since rate cuts began in 2024, AWP’s NAV has stabilized, suggesting the worst of the rate-driven damage is already behind it.

Concerns around return of capital are often overstated. When supported by total returns and unrealized gains, ROC can be both sustainable and tax-efficient for shareholders. Since 2019, AWP has outperformed both the REIT benchmark Vanguard Real Estate Income Fund (VNQ) and sector leaders like Realty Income (O), indicating effective portfolio management and value creation for shareholders.

The CEF ended fiscal 2025 with over $55 million in unrealized appreciation, sufficient to support current distributions for more than a year. AWP’s monthly payout equates to a 11.5% yield, and shares now trade at par with NAV after previously commanding a generous premium. For income investors, AWP offers double-digit yield from an undervalued, rate-sensitive sector positioned for strong recovery.

Pick 2: MO – Yield 6.3%

With 56 years of consistent dividend growth, Altria (MO) remains one of the most dependable income stocks in the market. After a post-Q3 selloff in 2025, stronger guidance and a solid Q4 reinforced the durability of its business model.

Despite declining cigarette sales volumes, Altria continues to grow earnings through pricing power and cost discipline. Management expects mid-single-digit EPS and dividend growth through 2028, and the current dividend yields 6.5% with a sustainable payout ratio.

The company is gradually expanding its smoke-free portfolio while its core combustible business continues to generate substantial cash. With modest leverage, ample liquidity, and $8 billion returned to shareholders in 2025, Altria remains well positioned to fund dividends, buybacks, and product evolution.

Trading near 11x forward earnings, MO offers durable income, defensive cash flows, and compelling value in a market still focused on growth at any price.

Conclusion

When you are asked about your top holdings, mentioning reliable income-paying picks is hardly going to make you an exciting person at the party. However, long-term income success is rarely exciting at the moment, but it is powerful over time. By focusing on well-managed securities with durable cash flows, investors can step away from market noise and let compounding do the heavy lifting.

At High Dividend Opportunities, we don’t chase excitement, because predicting what will excite Wall Street next, or when it will abandon today’s trend, is a losing game. Cash flow, by contrast, is permanent and perpetual. Dividends once paid cannot be taken back. This is how income is built to last.

Sale Ends February 24, 2025!