2 Dividend Stocks Retirees Can Count On for 10%+ Yield in 2025
For retirees seeking dependable income, dividend stocks yielding over 10% offer a compelling solution to fund retirement without eroding principal. These high-yield stocks provide steady cash flow to cover living expenses, while their resilience through economic cycles ensures stability. Wellington Management’s 93-year study shows high-yield dividend stocks — excluding the riskiest ultra-high yields — consistently […] The post 2 Dividend Stocks Retirees Can Count On for 10%+ Yield in 2025 appeared first on 24/7 Wall St..
Dividend stocks have proved to be superior investments for decades, and those yielding 10% or more are top-tier performers.
While chasing yield is a risky pursuit, these exceptional income-generating stocks look primed for significant growth to help investors fund their retirement.
Sit back and let dividends do the heavy lifting for a simple, steady path to serious wealth creation over time. Grab a free copy of “2 Legendary High-Yield Dividend Stocks“ now.
Key Points in This Article:
For retirees seeking dependable income, dividend stocks yielding over 10% offer a compelling solution to fund retirement without eroding principal. These high-yield stocks provide steady cash flow to cover living expenses, while their resilience through economic cycles ensures stability.
Wellington Management’s 93-year study shows high-yield dividend stocks — excluding the riskiest ultra-high yields — consistently outperform, delivering positive returns every decade despite wars, depressions, and recessions.
Chasing unsustainable yields often signals distressed businesses, but selecting quality high-yield stocks with strong fundamentals helps mitigate risk. Retirees can rely on these for monthly payouts to match expenses, enhancing financial security.
However, due diligence is crucial to avoid dividend traps. Below are two companies with yields exceeding 10%, rooted in stable sectors, that offer retirees reliable income.
PennantPark Floating Rate Capital: A BDC Built for Income
PennantPark Floating Rate Capital (NYSEARCA:PFLT), a business development company (BDC) that delivers a 10.1% yield with a $0.1025 monthly dividend. It is ideal for retirees needing regular income.
PFLT invests in the debt of mid-sized growth companies. At the end of March, it held $238 million in preferred and common stock in its portfolio businesses, along with $2.1 billion in first lien secured debt.
This diversification and focus on senior debt minimize risk, helping to ensure payouts even in the event of bankruptcies. Its 10.5% weighted average yield on loans reflects high returns from lending to underserved businesses, which is a structural advantage. Despite a 9% stock decline over the past year, as high interest rates have provided a headwind since 2022, PFLT’s floating-rate loans benefit from elevated rates as they boost income.
PFLT’s diversified, secure portfolio and 13 years of stable payouts make it a retiree-friendly income engine.
AGNC Investment: Government-Backed Mortgage Stability
AGNC Investment (NASDAQ:AGNC) is a real estate investment trust (REIT) that offers retirees a 15.7% yield through a $0.12 monthly dividend, unchanged for 57 months, ensuring predictable cash flow.
AGNC’s $78.9 billion portfolio includes $70.5 billion in agency mortgage-backed securities (MBS) backed by Fannie Mae, Freddie Mac, and Ginnie Mae, leveraging U.S. government credit. Its strategy of borrowing short-term at lower rates to invest in higher-yielding MBS produced a 2.4% economic return in Q1.
While interest rate hikes from 2021 to 2023 caused AGNC’s stock to drop by 45%, the Federal Reserve’s expected rate-easing cycle in 2025 is likely to boost MBS demand. Chairman Jerome Powell held firm on rate cuts at the central bank’ latest meeting, but the possibility for two more cuts later this year is on the table.
AGNC’s $3.3 billion in Treasuries adds stability and helps offset its high 6.6x debt-to-equity ratio, which indicates a reliance on debt financing. For retirees, though, AGNC’s assets — backed by the full faith and credit of the U.S. government — and its high yield provide a reliable income stream with defensive qualities.
Why These Stocks Suit Retirees
PennantPark and AGNC stand out for retirees because their monthly dividends align with recurring expenses like bills and healthcare. Wellington’s data underscores their historical outperformance, with high-yield stocks averaging 9.8% annualized returns, outpacing the S&P 500’s 7.2% in down markets.
PFLT’s focus on secure, diversified debt and AGNC’s government-backed MBS reduce risk compared to equity-heavy REITs or BDCs. Both stocks offer investors steady cash flows. Retirees, though, should remain vigilant for interest rate shifts or economic downturns that could pressure payouts, but these stocks offer a balance of high income and stability.
Key Takeaways
PennantPark Floating Rate Capital and AGNC Investment, with eye-watering yields, are retiree-friendly dividend stocks because of their reliable monthly income. Their stable payouts, backed by diversified debt and government-guaranteed assets, align with retirees’ need for security.
Despite risks from rate changes or economic shifts, their fundamentals and historical resilience make them compelling for income-focused portfolios.
The post 2 Dividend Stocks Retirees Can Count On for 10%+ Yield in 2025 appeared first on 24/7 Wall St..
