VanEck BDC Income ETF

BIZD

Börsenwert 1,43 Mrd. $

Double-digit dividend yields typically signal serious risks. However, occasionally, the market offers rare opportunities to lock in enormous income without sacrificing long-term growth. I highlight two deeply discounted dividend stocks yielding over 10% that I believe offer surprisingly sustainable payouts backed by resilient cash flows.

Dividend stocks are selling off as rate hike fears return. The inflation spike may prove temporary. Some blue-chip dividend stocks now offer rare yields.

The funds offer double-digit yields for now, but have been cutting their payouts.

When retiring on dividends, you need to be highly selective to ensure that your portfolio does not disappoint you. I detail the only dividend stocks that I would trust to generate passive income to fund my retirement. I provide a multi-part test to significantly reduce the risks that a dividend stock will let you down in retirement.

The market is offering several proven long-term total return outperformers at a clear discount today. I detail two opportunities that have very strong underlying fundamentals and long-term growth potential. I also share the risks involved.

Higher rates have created a rare chance to buy quality dividend payers at yields not seen in years, well beyond the usual high-yield niches. Two dividend machines with 20+ years of payouts have pulled back sharply. I think the drop is about interest rates, not weaker businesses. One is an infrastructure fund with an exceptional payout record. The other is a cash-generative blue chip that covers its dividend with room to spare.

VanEck BDC Income ETF offers a ~12% yield but remains a hold due to sector-specific risks and portfolio construction concerns. BIZD's heavy allocation to ARCC and MAIN is positive, but exposure to riskier BDCs and underweighting of strong internally managed names limits appeal. Sector-wide issues like weak dividend coverage, declining NAVs, and rising non-accruals highlight the importance of selective BDC investing over broad ETF exposure.

Not everyone wants to or needs to retire early. After all, a 9-5 day job brings steady income, a sense of purpose and discipline, and keeps one engaged in physical and mental activity. Still, one size does not fit all. There would be many folks who like the idea of retiring from a 9-5 job in their 40s or early 50s and pursuing something they have always dreamt about. We will discuss what it really takes to retire early and how to go about investing for early retirement, also known as FIRE (Financially Independent Retire Early).

Dividend stocks are under pressure from rising long-term interest rates. What matters most in the near term is where interest rates are headed next. I detail the factors at play and where I think the best risk-adjusted places to allocate capital today are.

Retiring on dividends can help you weather market crashes without selling shares. However, three major risks can still derail your retirement. I detail what these are and how to mitigate them.