Resilient Income Streams With These 2 Dividend Picks

Swim In Cash With 2 Great Dividends

Summary

• Dividend investors will still be better off in 2023 despite a volatile market.
• The feeling of knowing that your next cash inflow is just around the corner is invaluable.
• Two outstanding dividend-payers with up to 10% yields for a comfortable retirement.

Despite the Federal Reserve and economic metrics dominating the news, 2023 is expected to be another year of record dividends, a proven method of returning value to shareholders. 

In the vast ocean of financial markets, dividends offer a calm beach with steady returns, free cash flows, and management's commitment to investors. While often overlooked by Wall Street, dividends are a reliable way to support our financial well-being and retirement lifestyle. Join us in navigating these waters and take the plunge into the world of dividends.

Pick #1: BIZD - Yield 10.8%

Business Development Companies (BDCs) are a great choice for investors in a rising interest rate environment. Their borrowing and lending model means their interest expense stays relatively flat while their borrowers pay more as interest rates rise. This has led to BDCs raising dividends, paying out supplemental dividends, and achieving record earnings over the past few quarters. This trend is expected to continue in Q2. 

The VanEck BDC Income ETF (BIZD) tracks the MVIS US Business Development Companies Index and is heavily weighted towards the ten largest BDCs. This means that when the BDCs perform well, BIZD will perform well too. 

BIZD pays variable dividends depending on its income generation from portfolio BDCs. BIZD’s TTM dividends indicate an excellent 10.4% annualized yield. Despite market volatility, BIZD has maintained a fairly stable payment bracket since its inception in 2013 and this ETF is well-positioned to deliver large returns across interest rate cycles.

Pick #2: AM – Yield 7.7%

At High Dividend Investing, we are passionate about dividends, and we believe that they are a critical factor in any investment strategy. We were not afraid to take risks, and when Antero Midstream Corporation (AM) reduced its dividend in 2021, we saw an opportunity. 

We believed in the company's long-term plan for growth, safety, and a stronger distribution. Two years later, AM is well on its way to achieving these goals, with positive FCF and adjusted EBITDA up 10% YoY. Management is focused on debt reduction and aims to achieve a conservative balance sheet and be self-funding. Once this is accomplished, shareholders can expect to see more capital returned through distribution hikes and share repurchases. 

We believe that AM is on the path to becoming one of the best midstream investments in the market. We have watched the company take one step after another towards achieving these goals, and we are pleased with the progress so far. While there is still work to be done, we are confident in AM's ability to continue delivering value to shareholders.

Conclusion

Our investment group focuses on building resilient income streams from companies committed to their shareholders. Dividends offer a secure option for shareholders looking to navigate the unpredictable financial market and are a beacon of stability in rocky markets. With a diversified "model portfolio" of +45 dividend payers, we enjoy a steady flow of income, despite price swings. Quality companies are growing their payouts to shareholders, providing consistent returns, and management's dedication to investors. 

Join us in exploring the world of dividends, where you can find a steady beach among the vast ocean of investments. This is the beauty of the income method, a proven pathway for a prosperous retirement.