1 month ago
Generating $6,550 a month requires $2.25M at a 3.5% yield, $1.31M at 6%, or just $786,000 at 10%.
A blended portfolio of VYM, DIVO, VICI, JEPQ, ARCC, and SGOV yields 5.6%, requiring $1.4M while preserving some dividend growth.
A 3.5% yield growing 8% annually reaches $249,000 in income by year 15, while a static 10% yield stays flat and loses ground to inflation.
Read More: Learn 7 ways to generate income with a $1,000,000+ portfolio (sponsor)
A target of $6,550 a month equals $78,600 a year. For a 66-year-old, that income must cover housing, healthcare premiums, travel, and decades of other retirement expenses. The amount you need to invest to generate $78,600 from portfolio income alone varies widely by yield. Here's what the numbers look like at three yield levels, using six income holdings as examples.
#yield
A blended portfolio of VYM, DIVO, VICI, JEPQ, ARCC, and SGOV yields 5.6%, requiring $1.4M while preserving some dividend growth.
A 3.5% yield growing 8% annually reaches $249,000 in income by year 15, while a static 10% yield stays flat and loses ground to inflation.
Read More: Learn 7 ways to generate income with a $1,000,000+ portfolio (sponsor)
A target of $6,550 a month equals $78,600 a year. For a 66-year-old, that income must cover housing, healthcare premiums, travel, and decades of other retirement expenses. The amount you need to invest to generate $78,600 from portfolio income alone varies widely by yield. Here's what the numbers look like at three yield levels, using six income holdings as examples.
#yield
1 month ago
VICI and ARCC pay nonqualified dividends taxed at ordinary rates, making a Roth shelter worth $12,222 annually at the 24% bracket.
AGNC's 16.55% yield creates the steepest Roth advantage, while MPLX and EPD can trigger unrelated business income taxes inside an IRA.
Reinvested at 4%, the $12,222 annual Roth advantage compounds to $363,948 over 20 years with no price growth ****** umed.
Building a portfolio and living off one are two completely different skills, and almost ****** ody teaches the second. This problem is what The Definitive Guide to Retirement Income helps, and it is free today. Read more here. (Sponsor)
In 2026 the 24% federal bracket covers individuals whose taxable income tops $105,700 and married couples over $211,400. At that rate, a portfolio paying $50,925 a year in ordinary dividends sends $12,222 to the government annually. Hold the same stocks in a Roth IRA and that bill quickly drops to zero.
#dividends #annually #advantage
AGNC's 16.55% yield creates the steepest Roth advantage, while MPLX and EPD can trigger unrelated business income taxes inside an IRA.
Reinvested at 4%, the $12,222 annual Roth advantage compounds to $363,948 over 20 years with no price growth ****** umed.
Building a portfolio and living off one are two completely different skills, and almost ****** ody teaches the second. This problem is what The Definitive Guide to Retirement Income helps, and it is free today. Read more here. (Sponsor)
In 2026 the 24% federal bracket covers individuals whose taxable income tops $105,700 and married couples over $211,400. At that rate, a portfolio paying $50,925 a year in ordinary dividends sends $12,222 to the government annually. Hold the same stocks in a Roth IRA and that bill quickly drops to zero.
#dividends #annually #advantage
2 months ago
ARCC yields nearly 10% with 17 years of stable dividends, while VICI's 7% yield comes with 100% occupancy and 40-year inflation-linked leases.
Pfizer yields 6% at a forward P/E of 10, delivering five straight EPS beats while prioritizing its dividend over buybacks in 2026.
Roth IRA placement turbocharges all four picks since their distributions are taxed as ordinary income in taxable accounts.
Just released. Our ******* ysts combed the entire stock market and named the ten best stocks to buy right now, and Altria didn't make the cut. Enter your email to see the names that beat MO. The report is free. Enter your email and see if any of your stocks made the cut.
Roth IRAs let dividends compound tax-free forever, which makes them the ideal wrapper for names that spit out ordinary-income distributions taxed at your marginal rate outside the account. The four below yield well above the S&P 500 average, and each brings a different flavor of durable cash flow: a business development company, a gaming net-lease REIT, a tobacco cash machine, and a large-cap pharma. As one reference point, Ares Capital (NASDAQ:ARCC) alone reports $1.92 in annualized dividends per share, a payout policy backed by 17 years of stable or increasing regular quarterly dividends.
#dividends #arcc #four
Pfizer yields 6% at a forward P/E of 10, delivering five straight EPS beats while prioritizing its dividend over buybacks in 2026.
Roth IRA placement turbocharges all four picks since their distributions are taxed as ordinary income in taxable accounts.
Just released. Our ******* ysts combed the entire stock market and named the ten best stocks to buy right now, and Altria didn't make the cut. Enter your email to see the names that beat MO. The report is free. Enter your email and see if any of your stocks made the cut.
Roth IRAs let dividends compound tax-free forever, which makes them the ideal wrapper for names that spit out ordinary-income distributions taxed at your marginal rate outside the account. The four below yield well above the S&P 500 average, and each brings a different flavor of durable cash flow: a business development company, a gaming net-lease REIT, a tobacco cash machine, and a large-cap pharma. As one reference point, Ares Capital (NASDAQ:ARCC) alone reports $1.92 in annualized dividends per share, a payout policy backed by 17 years of stable or increasing regular quarterly dividends.
#dividends #arcc #four
2 months ago
Ares Capital (NASDAQ: ARCC) is a business development company (BDC). Its core business is making loans to smaller businesses. So the ability of its clients to repay their loans on time is very important. In the second quarter of 2026, there was a 60-basis-point year-over-year increase in the number of troubled loans Ares Capital is carrying. That's a move in the wrong direction, but don't get overly concerned just yet. Here's why.
There's no question that investors in a BDC like Ares Capital have to pay close attention to loan quality. The company issues stock and takes on debt to fund the loans it makes to its clients. As long as those loans continue to be paid, Ares Capital earns the spread between its cost of capital and the interest it charges on its loans. In the second quarter, the average interest rate paid by its clients was 10.3%. This can be a very lucrative business.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
However, the loans Ares Capital makes are typically to smaller companies that lack access to lower-cost funding. During periods of economic weakness, such as a recession, smaller companies can find it increasingly difficult to cover the costs of high-interest loans. If too many loans become troubled, Ares Capital could struggle to support its lofty 9.5% yield.
That's why non-accrual loans are so important to watch. If the percentage of non-accrual loans is increasing, your risk as a dividend investor is increasing, too. So the 60-basis-point rise in non-accrual loans shouldn't be ignored. But it also has to be put into perspective.
#ares #smaller
There's no question that investors in a BDC like Ares Capital have to pay close attention to loan quality. The company issues stock and takes on debt to fund the loans it makes to its clients. As long as those loans continue to be paid, Ares Capital earns the spread between its cost of capital and the interest it charges on its loans. In the second quarter, the average interest rate paid by its clients was 10.3%. This can be a very lucrative business.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
However, the loans Ares Capital makes are typically to smaller companies that lack access to lower-cost funding. During periods of economic weakness, such as a recession, smaller companies can find it increasingly difficult to cover the costs of high-interest loans. If too many loans become troubled, Ares Capital could struggle to support its lofty 9.5% yield.
That's why non-accrual loans are so important to watch. If the percentage of non-accrual loans is increasing, your risk as a dividend investor is increasing, too. So the 60-basis-point rise in non-accrual loans shouldn't be ignored. But it also has to be put into perspective.
#ares #smaller
2 months ago
A $500,000 BDC and MLP basket blends above 8% yield, saving $10,080 annually in federal taxes at 24% when held inside a Roth.
The Roth tax advantage scales with your bracket, ranging from $9,240 annually at 22% to $15,540 at 37% on the same $42,000 portfolio.
Non-accruals rose to 2.4% at ARCC and 2.8% at OBDC as lower base rates continue pressuring BDC spread income and distribution coverage.
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A $500,000 basket of business development companies and midstream MLPs currently throws off roughly $42,000 in ordinary income every year. At the 24% federal bracket, that hands the IRS about $10,080 annually before you touch a share. Inside a Roth, that same $10,080 stays in the account, reinvested, tax-free, permanently.
#roth #annually #free #arcc
The Roth tax advantage scales with your bracket, ranging from $9,240 annually at 22% to $15,540 at 37% on the same $42,000 portfolio.
Non-accruals rose to 2.4% at ARCC and 2.8% at OBDC as lower base rates continue pressuring BDC spread income and distribution coverage.
Act now: the ***** yst who called NVIDIA in 2010 just named his top 10 AI stocks — and Enterprise Products Partners didn't make the cut. Grab the names FREE today.
A $500,000 basket of business development companies and midstream MLPs currently throws off roughly $42,000 in ordinary income every year. At the 24% federal bracket, that hands the IRS about $10,080 annually before you touch a share. Inside a Roth, that same $10,080 stays in the account, reinvested, tax-free, permanently.
#roth #annually #free #arcc
2 months ago
Social Security's 2034 trust fund depletion could slash monthly payments to 78%, making early claiming at 62 a compelling strategy for 1964-born Boomers.
$ARCC yields nearly 10% and $MO has raised dividends 57 consecutive years, both carrying Buy ratings from top Wall Street ****** ysts.
Reinvesting dividends from these 6%+ yielding stocks can more than offset the 30% reduction early Social Security claimants accept versus waiting until 67.
Act now: the ****** yst who called NVIDIA in 2010 just named his top 10 AI stocks — and United Parcel Service didn't make the cut. Grab the names FREE today.
Numerous studies indicate that the Social Security Old-Age and Survivors Insurance (OASI) trust fund is projected to run out of reserves in late 2032; while the program is not expected to go bankrupt or disappear, current taxpayers will still fund a large portion of the payments. Some project that payments could fall to 78% of a recipient's current payment. That means every $1,000 in payments could be cut to $780 if Congress does not intervene. The Social Security Administration says that if combined with the Disability Insurance trust fund, the depletion date is extended to 2034, when 83% of benefits would remain payable. The bottom line is that Congress will likely wait until the bitter end to fix things, as it has in the past.
#trust #early
$ARCC yields nearly 10% and $MO has raised dividends 57 consecutive years, both carrying Buy ratings from top Wall Street ****** ysts.
Reinvesting dividends from these 6%+ yielding stocks can more than offset the 30% reduction early Social Security claimants accept versus waiting until 67.
Act now: the ****** yst who called NVIDIA in 2010 just named his top 10 AI stocks — and United Parcel Service didn't make the cut. Grab the names FREE today.
Numerous studies indicate that the Social Security Old-Age and Survivors Insurance (OASI) trust fund is projected to run out of reserves in late 2032; while the program is not expected to go bankrupt or disappear, current taxpayers will still fund a large portion of the payments. Some project that payments could fall to 78% of a recipient's current payment. That means every $1,000 in payments could be cut to $780 if Congress does not intervene. The Social Security Administration says that if combined with the Disability Insurance trust fund, the depletion date is extended to 2034, when 83% of benefits would remain payable. The bottom line is that Congress will likely wait until the bitter end to fix things, as it has in the past.
#trust #early
3 months ago
Ares Capital (NASDAQ: ARCC) is likely to be most attractive to income investors, given its lofty 9.9% dividend yield. To put that into perspective, the yield of the S&P 500 index (SNPINDEX: ^GSPC) is a tiny 1%. That said, a yield that high comes with risks that have to be fully understood. Which is why it is important for investors to consider the business development company's (BDC's) second-quarter results in a larger context.
Ares Capital began its second-quarter earnings update by announcing the third-quarter dividend: $0.48 per share. That's the same level that has been paid since the fourth quarter of 2022. So it wasn't a particularly shocking update. But the BDC's net investment income was $0.50 per share, leaving only a two-cent cushion for the dividend.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
In the first quarter, the business development company generated $0.55 per share of net investment income. The key takeaway is that this number moves around a little bit, so you need to look at a longer time period before making a call on Ares Capital's dividend-paying ability.
For example, in 2025, Ares Capital's net investment income totaled to $2.02 per share while it paid out $1.92 in dividends. During the year, net investment income ranged between $0.58 per share and $0.48 per share on a quarterly basis. Clearly, the board isn't deciding the dividend based on one quarter's results. Still, that doesn't mean that investors shouldn't be worried.
#quarter #investment #yield
Ares Capital began its second-quarter earnings update by announcing the third-quarter dividend: $0.48 per share. That's the same level that has been paid since the fourth quarter of 2022. So it wasn't a particularly shocking update. But the BDC's net investment income was $0.50 per share, leaving only a two-cent cushion for the dividend.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
In the first quarter, the business development company generated $0.55 per share of net investment income. The key takeaway is that this number moves around a little bit, so you need to look at a longer time period before making a call on Ares Capital's dividend-paying ability.
For example, in 2025, Ares Capital's net investment income totaled to $2.02 per share while it paid out $1.92 in dividends. During the year, net investment income ranged between $0.58 per share and $0.48 per share on a quarterly basis. Clearly, the board isn't deciding the dividend based on one quarter's results. Still, that doesn't mean that investors shouldn't be worried.
#quarter #investment #yield
3 months ago
I'm not going to lie, I'm pretty addicted to collecting passive dividend income. While I love working, nothing beats getting paid for work someone else did. With a yield of more than 10%, few passive-income investments pay as well as Ares Capital (NASDAQ: ARCC) -- it's almost 10 times higher than the S&P 500's current yield of 1.1%.
That monster yield is why I just bought even more shares of this business development company (BDC).
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
A dividend yield of 10% or more is usually a major red flag. However, that's not the case with Ares Capital. For starters, it's a BDC, which must distribute at least 90% of its taxable net income to shareholders in dividends to remain in compliance with IRS regulations. Given that payout requirement, it's going to have a high yield.
Further, where Ares Capital shines is in its ability to sustain and grow its dividend. It has maintained or raised its payout for 17 consecutive years. That's impressive for a BDC, as most of its peers have had at least one dividend reduction during that time frame. This durability is a testament to the company's strong underwriting, as its ******* ulative investments of more than $73 billion have a net realized loss of less than 0% since inception. That's a far better loss ratio than other BDCs (-1.1%) and even banks (-0.6%). By minimizing losses, Ares Capital has a long history of generating earnings that more than covered its dividend.
#capital #flashing #going
That monster yield is why I just bought even more shares of this business development company (BDC).
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
A dividend yield of 10% or more is usually a major red flag. However, that's not the case with Ares Capital. For starters, it's a BDC, which must distribute at least 90% of its taxable net income to shareholders in dividends to remain in compliance with IRS regulations. Given that payout requirement, it's going to have a high yield.
Further, where Ares Capital shines is in its ability to sustain and grow its dividend. It has maintained or raised its payout for 17 consecutive years. That's impressive for a BDC, as most of its peers have had at least one dividend reduction during that time frame. This durability is a testament to the company's strong underwriting, as its ******* ulative investments of more than $73 billion have a net realized loss of less than 0% since inception. That's a far better loss ratio than other BDCs (-1.1%) and even banks (-0.6%). By minimizing losses, Ares Capital has a long history of generating earnings that more than covered its dividend.
#capital #flashing #going
4 months ago
Ares Capital (NASDAQ: ARCC) currently yields just over 10%. That's about 10 times higher than the S&P 500.
At that rate, investing $5,000 into the business development company's (BDC) stock would generate a little more than $500 a year in passive income. That's, of course, if Ares Capital can maintain its current dividend rate. Here's a look at the sustainability of its high-yielding payout.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Ares Capital has an excellent dividend track record. The BDC has paid a stable or growing regular dividend for over 16 consecutive years. That's impressive in the BDC **** e, as many of its peers have had to cut their payouts over the years due to falling earnings.
There's some concern about the sustainability of Ares Capital's dividend, given the recent decline in its core earnings. The BDC reported $0.47 per share of core earnings in the first quarter, down from $0.50 per share in the fourth quarter and year-ago period. As a result, core earnings fell short of the $0.48-per-share quarterly dividend.
#ares #signal #years #core
At that rate, investing $5,000 into the business development company's (BDC) stock would generate a little more than $500 a year in passive income. That's, of course, if Ares Capital can maintain its current dividend rate. Here's a look at the sustainability of its high-yielding payout.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Ares Capital has an excellent dividend track record. The BDC has paid a stable or growing regular dividend for over 16 consecutive years. That's impressive in the BDC **** e, as many of its peers have had to cut their payouts over the years due to falling earnings.
There's some concern about the sustainability of Ares Capital's dividend, given the recent decline in its core earnings. The BDC reported $0.47 per share of core earnings in the first quarter, down from $0.50 per share in the fourth quarter and year-ago period. As a result, core earnings fell short of the $0.48-per-share quarterly dividend.
#ares #signal #years #core
5 months ago
Ares Capital (NASDAQ: ARCC) currently pays a $0.48-per-share quarterly dividend. At its recent stock price of around $19, the business development company (BDC) yields more than 10%. That's about 10 times the S&P 500's yield, which currently sits around 1%.
Investors are running out of time to lock in the financial stock's currently sky-high yield. Here's why you might want to act fast.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Ares Capital announced its second-quarter dividend payment at the end of April when it reported its first-quarter financial results. The BDC will pay that dividend on June 30th. However, an investor would need to be a shareholder before the market closes on June 15. An investor who buys after that date wouldn't receive their first dividend until the third-quarter payment, which Ares has historically paid on the last day of September.
Waiting to buy also risks locking in a lower yield. The REIT's share price has fallen about 8% this year, pushing its yield to around its highest level in the last five years:
Investors are running out of time to lock in the financial stock's currently sky-high yield. Here's why you might want to act fast.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Ares Capital announced its second-quarter dividend payment at the end of April when it reported its first-quarter financial results. The BDC will pay that dividend on June 30th. However, an investor would need to be a shareholder before the market closes on June 15. An investor who buys after that date wouldn't receive their first dividend until the third-quarter payment, which Ares has historically paid on the last day of September.
Waiting to buy also risks locking in a lower yield. The REIT's share price has fallen about 8% this year, pushing its yield to around its highest level in the last five years:
