Retirement planning isn’t just about playing defense anymore. Sure, preserving capital and securing reliable income streams are key pillars of a sound retirement strategy. But in a world where inflation refuses to stay in its lane, Social Security is increasingly uncertain, and bonds pay less than your kid’s lemonade stand, retirees need more than just safety. They need upside. And not the kind that makes you wake up at 3 AM clutching your iPhone to check the market.
Enter the rare gem: high-yield investments that don’t just preserve your sanity — they grow your wealth too. Today, we’re breaking down two stress-free, high-yield opportunities that not only offer consistent income in retirement but also come with significant upside potential. No meme stocks, no speculative AI startups, and definitely no crypto ETFs with ticker symbols that sound like bad passwords. These are real businesses with real cash flows — built to last and built to grow.
1. Brookfield Infrastructure Partners (BIP): The 5%+ Yield That Grows Like a Weed
Current Yield: ~5.3%
Dividend Growth: ~6-9% annually
Upside Potential: 30–50% over 3–5 years
Let’s start with a company that’s as boring as it is brilliant. Brookfield Infrastructure Partners (BIP) owns and operates the unsexy, essential backbone of the global economy: utilities, data centers, railroads, toll roads, ports, pipelines, and more. These are the kinds of assets you don’t notice until they break — and they rarely do.
Why Retirees Love BIP:
BIP isn’t your average dividend stock. It’s a limited partnership, which means it kicks back a hefty distribution (similar to a dividend) directly to unitholders. The company targets 5–9% annual distribution growth — and has delivered on that promise for over a decade. That’s the kind of yield-plus-growth combo that turns $100K into a six-figure income stream over time.
Even better, its revenue is largely tied to inflation-linked contracts and regulated assets, meaning it’s naturally hedged against the one thing that eats most retirement portfolios alive: inflation. While other income investors are sweating over CPI prints, BIP investors are getting a raise.
What’s the Catch?
Yes, it’s structured as a partnership, so it issues a K-1 tax form — which some investors avoid like it’s anthrax. But if you’re holding it in a taxable account and you’re not scared of a little extra paperwork, it’s one of the most tax-efficient, high-yielding plays you can make.
And if you really want to avoid the K-1, Brookfield also offers a corporate version under the ticker BIPC — same business, same economics, just a different tax structure. Slightly lower yield, but it fits cleanly into an IRA or a brokerage account without the Schedule K-1 headache.
Where’s the Upside?
Here’s the kicker: BIP is undervalued. Like, significantly.
After the 2022-2023 rate-hike spree, many infrastructure stocks got unfairly punished. But BIP’s business model actually thrives in rising rate environments, as it can acquire distressed assets at lower prices and lock in attractive long-term returns.
Morningstar, Value Line, and most sell-side analysts have fair value targets between $45–$50 per unit, while the stock currently trades around $30–$35. That’s 30–50% upside, on top of a juicy 5.3% yield that’s expected to grow every year. Think of it like owning the plumbing of capitalism — and getting paid handsomely while you wait for it to be revalued.
2. Enterprise Products Partners (EPD): The Sleep-Easy Pipeline King With a 7%+ Yield
Current Yield: ~7.3%
Dividend Growth: 20+ years of increases
Upside Potential: 25–35% over 3 years
If BIP is the pick-and-shovel play for global infrastructure, Enterprise Products Partners (EPD) is the gold standard of U.S. energy transport — and one of the most stable cash cows in the investing world.
The Business:
EPD is a midstream energy juggernaut. It owns over 50,000 miles of pipelines, dozens of storage facilities, processing plants, and export terminals. Unlike oil drillers, EPD doesn’t gamble on commodity prices — it earns fee-based revenues for transporting and processing hydrocarbons. Think of them as the toll booth on the energy superhighway.
What makes EPD special is its fortress balance sheet and unbroken commitment to returning capital to shareholders. The company has increased its distribution for 25 consecutive years, boasts a distribution coverage ratio of nearly 1.8x, and carries a BBB+ credit rating — practically unheard of in the MLP space.
Why Retirees Love EPD:
First, the yield. Over 7% — and it’s rock solid. This isn’t a trap yield. EPD has the cash flow to cover the distribution nearly twice over, which means it can withstand oil price shocks, economic slowdowns, or whatever political chaos comes next.
Second, the company is family-controlled, which means management thinks in decades, not quarters. That’s a rare mentality in today’s CEO musical chairs environment. In other words, this is a business run for long-term owners, not short-term traders.
Tax Considerations:
Like BIP, EPD is a master limited partnership (MLP), so it issues a K-1. But again, this shouldn’t scare off serious investors. Much of the distribution is tax-deferred, meaning it reduces your cost basis instead of getting taxed as ordinary income. That makes it highly efficient — especially if you’re not planning to sell anytime soon.
Holding it in a taxable account? You could live off the cash flow for years without paying much (if any) income tax until you exit.
Where’s the Upside?
EPD trades at about 8x distributable cash flow (DCF) — a big discount compared to historical norms. Many analysts peg its fair value around $33–$35, while it trades near $27–$28. That’s roughly 25–30% upside, not counting the 7%+ annual yield.
With U.S. energy exports surging, demand for LNG infrastructure climbing, and oil producers needing EPD’s services more than ever, there’s a strong secular tailwind behind this beast. Plus, its capital discipline — unlike some of its peers — means it’s not taking dumb risks just to grow.
The Math: What Happens If You Own Both?
Let’s say you split a $200,000 investment evenly between BIP and EPD.
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$100,000 in BIP @ 5.3% yield = $5,300/year
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$100,000 in EPD @ 7.3% yield = $7,300/year
That’s $12,600 in income, annually, right out of the gate — or $1,050/month. That doesn’t even include dividend growth or capital appreciation. Over time, that income could easily rise to $15,000–$18,000/year, with capital gains of $50,000–$80,000 on top.
You’re getting:
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Diversified infrastructure exposure (global + U.S. energy)
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Inflation protection
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High, growing income
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Built-in upside as valuations normalize
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Two of the best management teams in the business
And all with lower volatility than the S&P 500. These are not speculative moonshots — they’re slow, steady tanks rolling through chaos, quietly compounding wealth.
Why These Picks Beat Traditional Retirement Income Plays
Let’s compare these two juggernauts to some common “safe” retirement income strategies:
Bonds:
Most investment-grade bonds yield 4–5% — before inflation. That’s barely breakeven in real terms. And when rates fall again (as they eventually will), your reinvestment risk shoots through the roof.
Meanwhile, BIP and EPD yield more, grow faster, and offer capital appreciation, not just coupon clipping.
REITs:
REITs can be great — and some are. But many are overleveraged, stuck with office exposure, or have hit a ceiling in terms of growth due to rising rates. The REIT universe is a minefield right now unless you’re very selective.
BIP and EPD offer infrastructure exposure without the real estate baggage, and they don’t rely on speculative growth to fund their distributions.
Dividend ETFs:
Vanguard Dividend Appreciation (VIG) and Schwab Dividend Equity (SCHD) are solid — but their yields hover around 2.5–3.5%. That’s fine in an accumulation phase, but not enough for retirees who need real income today.
By contrast, BIP and EPD offer twice the yield, with comparable risk metrics and better long-term return potential.
Final Thoughts: Sleep-Well Income With Growth Optionality
If you’re looking for high-yield, low-drama investments that actually pay you to hold them, both Brookfield Infrastructure Partners (BIP) and Enterprise Products Partners (EPD) deserve serious consideration. These are the kind of holdings that anchor a portfolio, not threaten it.
They deliver:
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Income you can count on
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Growth that keeps up with (or beats) inflation
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Valuation upside that gives you a margin of safety
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Business models that are relevant today — and tomorrow
Are they flashy? Nope. Are they the kind of companies your financial influencer on TikTok is shouting about while jumping on a trampoline? Definitely not.
But are they retirement-grade, battle-tested, income-producing machines that will keep paying you long after the latest tech fad has flamed out?
Absolutely.
Disclosure: As always, do your own due diligence before investing. Talk to a financial advisor. And remember, just because something yields 7% doesn’t mean it’s safe — unless it’s Enterprise Products Partners. Then it might just be safer than your neighbor’s bank.
Bottom line: Stress-free yield isn’t a myth. You just have to know where to look. And with BIP and EPD, you’re looking at two of the best places to start.