Retirement isn’t just about slowing down. It’s about cashing in. After decades of hard work, clock-punching, and the occasional all-hands meeting that could have been an email, it’s finally your time. But the golden years can quickly turn into tin if your nest egg doesn’t produce enough income.
Enter high-yield investments—assets that churn out 10%+ annual returns in cold, hard cash. The kind of income that lets you out-earn inflation, ignore stock market noise, and maybe even afford that overpriced wine that used to be “just for special occasions.”
Before we dive into the list, let’s clear something up…
Is a 10% Yield Too Good to Be True?
No—and yes.
It’s true you should raise a skeptical eyebrow at anything promising massive returns with zero risk. But there are legitimate income-generating investments yielding 10% or more today. They’re not risk-free, but they’re also not scams. They’re mostly:
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Business development companies (BDCs)
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Real estate investment trusts (REITs)
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Preferred shares
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Covered call ETFs
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Closed-end funds (CEFs)
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Energy infrastructure plays
The trick? Know what you’re buying. Know why the yield is high. And make sure the cash flow backing that yield isn’t built on fairy dust and Reddit hype.
Now let’s get into the good stuff.
1. Main Street Capital (MAIN) – The Gold Standard BDC
Yield: ~10.2% (including special dividends)
Main Street Capital isn’t just any BDC—it’s the Harvard of income investing. MAIN provides debt and equity financing to small and mid-sized businesses across America. It collects interest, gets equity stakes, and dishes out fat monthly dividends.
Why retirees love it:
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Monthly payouts = consistent cash flow
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Rock-solid underwriting standards
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Internal management structure reduces fees
And here’s the cherry: MAIN often delivers special dividends, pushing your yield into double-digit territory. It’s like a Christmas bonus… but every few quarters.
2. Ares Capital (ARCC) – BDC Royalty
Yield: ~10.5%
Ares is a monster in the BDC world, managing over $20 billion in assets and lending to middle-market firms. It’s conservative, boring, and precisely the kind of “dull is beautiful” income machine retirees should embrace.
Pros:
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Massive scale provides deal flow advantage
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Long dividend history
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Backed by private equity powerhouse Ares Management
This isn’t a meme stock. It’s a yield tank. And it’s built to survive rate hikes, recessions, and cable news hysteria.
3. Oxford Lane Capital (OXLC) – High Risk, High Reward
Yield: ~19%
Let’s be honest—Oxford Lane is not for the faint of heart. This CEF specializes in collateralized loan obligations (CLOs), which are essentially bundles of corporate loans.
Why would anyone invest in something with 19% yield? Because it’s real. OXLC pays it monthly, and yes, the NAV is volatile, but the cash flow continues to rain down.
Use this one as a spice, not a steak. 2–3% of your portfolio max.
4. Global X SuperDividend ETF (SDIV) – World Yield Buffet
Yield: ~11%
SDIV is an ETF that holds 100 of the highest dividend-yielding equities from around the world. It’s diversified across countries and sectors and rebalances quarterly to keep the income flowing.
You get:
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Global diversification
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Monthly income
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Exposure to value plays
Downside? Performance is… meh. The NAV drifts downward over time. But if you’re focused on yield and not capital appreciation, this might fit your bill.
5. PIMCO Dynamic Income Fund (PDI) – The Bond Beast
Yield: ~13%
PIMCO knows bonds like Gordon Ramsay knows how to scream “IT’S RAW!” PDI is a closed-end fund (CEF) run by bond wizards who slice, dice, and manage complex fixed-income portfolios.
Why it works:
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Active management of high-yield bonds and mortgage-backed securities
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Uses leverage (carefully) to juice returns
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Has managed to sustain high distributions for years
The NAV fluctuates, sure. But if you’re playing for yield and trust PIMCO’s brainpower, this fund delivers.
6. Enterprise Products Partners (EPD) – Energy Income with Stability
Yield: ~7.5% base + price upside = 10%+ total return potential
This isn’t technically a 10% yield on paper, but hear us out.
EPD is one of the best-run MLPs (master limited partnerships) in the U.S. It transports oil, gas, and petrochemicals—not the sexiest business, but one that generates predictable, inflation-protected cash flow.
Add in:
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25+ years of dividend increases
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BBB+ investment-grade balance sheet
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Tax-advantaged distributions
And you’ve got an income engine that could grow your payout and give you capital appreciation. In total? 10%+ annual return is very realistic.
7. Ready Capital Corp (RC) – Real Estate Risk, Real Estate Rewards
Yield: ~13.5%
RC is a mortgage REIT focused on commercial real estate (CRE). Yes, we know—CRE is scary right now. But RC has adapted quickly, leaning into small-balance bridge lending with higher spreads and shorter terms.
This isn’t a set-it-and-forget-it play. It’s actively managed and tightly underwritten.
Why it matters:
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Monthly dividend
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Experienced management
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Heavily discounted to book value
For yield seekers with a bit of stomach, it’s a calculated risk with massive upside.
8. Global X NASDAQ 100 Covered Call ETF (QYLD) – Tech Stocks That Pay
Yield: ~11.8%
Love tech but hate its stingy dividends? QYLD has your back. It holds the NASDAQ 100 and sells covered calls against the holdings, generating juicy option premiums it pays out monthly.
Translation:
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You still own Apple, Microsoft, Nvidia
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But you get paid every month like clockwork
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With less upside volatility
It’s the retiree version of owning tech without all the Tesla-induced blood pressure spikes.
9. Annaly Capital Management (NLY) – Mortgage Madness (But with Dividends)
Yield: ~13.2%
Annaly is a mREIT juggernaut with a long, if bumpy, history of delivering high yields. It borrows short, invests long (mostly in agency MBS), and profits from interest spreads.
What makes it work?
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Fed pivot tailwind
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Inflation easing = better spreads
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Agency MBS are government-backed, lowering credit risk
Yes, the dividend fluctuates. But the cash keeps coming.
10. Brookfield Infrastructure Corp (BIPC) – Infrastructure, Inflation-Proofed
Yield: ~5% + consistent growth = 10% total return potential
BIPC is the more tax-friendly twin of Brookfield Infrastructure Partners (BIP), and it invests in toll roads, data centers, ports, and pipelines.
Here’s what makes it shine:
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Global footprint
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Inflation-linked contracts
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Strong parent company backing
The dividend grows like clockwork, and total returns (yield + capital gains) consistently hit 10%+ over time. It’s the kind of business that makes money in all weather—perfect for retirement peace of mind.
How to Build a 10% Yield Retirement Portfolio
Let’s be clear: You don’t need to YOLO into a single 13% yielder to hit your income goals. Instead, blend the best of these into a portfolio that balances risk, reward, and reliability.
Example Model Allocation (Target: 10% blended yield):
That’s how you build a retiree’s dream machine. And it spits out cash every month.
Risks You Shouldn’t Ignore
Don’t let the juicy numbers blind you. These high-yield picks come with real risks:
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Interest rate sensitivity: REITs and BDCs can suffer when rates spike.
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NAV erosion: Many high-yield CEFs and ETFs see slow long-term NAV decay.
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Leverage: CEFs and mREITs often borrow to boost returns, which amplifies volatility.
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Distribution cuts: Not all dividends are safe. Some get slashed in downturns.
That’s why diversification and regular rebalancing matter. Don't go all-in on any one yield hog.
What About Taxes?
A 10% yield is great—until Uncle Sam shows up with a fork and a napkin.
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Qualified dividends: Usually taxed at long-term capital gains rates.
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Ordinary income: Many REIT and BDC dividends are taxed as regular income.
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Return of capital (ROC): Some CEFs return your own money—fine in a tax-deferred account, confusing elsewhere.
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MLPs (like EPD): K-1 tax forms can be a pain in taxable accounts.
To reduce headaches:
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Hold high-yield assets in IRAs when possible
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Avoid MLPs in retirement accounts due to UBTI rules
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Know which dividends are tax-advantaged (e.g., BIPC)
Final Thoughts: 10% Yield Isn't Just Possible—It's Practical
You don't have to settle for 1.7% from a CD or play financial roulette with growth stocks that don't pay a dime. With careful selection, due diligence, and smart allocation, a 10% income stream is entirely achievable.
Will these investments always go up? Nope. Will there be price volatility? Absolutely. But when you’re retired, income is king—and these picks roll out the red carpet.
Your job? Sit back, collect the checks, and maybe toast your portfolio every month with a little bubbly. You earned it.