When the market gets choppy and economic headlines make your blood pressure spike, there’s nothing quite like the serenity of a fat, reliable dividend check. While inflation chips away at purchasing power and the Fed plays chicken with interest rates, dividend-paying stocks remain a lifeline for retirees seeking steady income. Especially juicy? Companies that offer 9%+ yields — if they're sustainable.
Yes, 9% dividends can be a minefield. But dig through the junk, and you may find income powerhouses built to last. Here are two retirement-ready juggernauts offering 9% dividends that look built to weather economic storms and keep income flowing long after you’ve stopped punching the clock.
1. Enterprise Products Partners (NYSE: EPD)
Dividend Yield: ~7.5% (But keep reading—there's a twist)
Okay, so EPD isn’t flashing a 9% yield on paper. But with its robust distribution growth history and built-in inflation protection, it’s arguably equivalent to a 9% or higher total yield when you factor in its long-term payout hikes and tax benefits.
What is it?
Enterprise Products Partners is a midstream energy MLP (Master Limited Partnership) that operates pipelines, storage, and processing assets across the U.S. It doesn’t dig or drill for oil or gas; it just moves and processes it. That means stable, fee-based income with limited exposure to commodity price swings.
Why retirees love it:
26 consecutive years of distribution growth
Conservative payout ratio (~55-60% of distributable cash flow)
Tax-deferred distributions (you’re taxed later, not now)
Insider ownership: The Duncan family has skin in the game
With $10+ billion in retained cash reinvested over the past decade and a cost of capital far below competitors, EPD keeps expanding without overleveraging.
Inflation advantage:
EPD’s contracts often include inflation escalators, which means your distribution power can grow even when CPI is hot.
Bottom line:
While technically below 9% now, EPD is a dividend machine with nearly unmatched safety. Add in the tax-deferral from MLP status, and you may wind up ahead of many so-called "high-yield" plays.
2. Ares Capital Corporation (NASDAQ: ARCC)
Dividend Yield: ~9.5%
This is the one you came for. Ares Capital Corporation is the largest publicly traded business development company (BDC) in the U.S., and it’s practically built for income.
What is it?
A BDC lends money to small and mid-sized businesses in exchange for high interest. It’s legally required to pay out at least 90% of income to shareholders. This keeps the dividends flowing like a river, especially when credit spreads widen.
Why ARCC stands out:
Massive diversification: Over 450 portfolio companies
Managed by Ares Management, a $400+ billion global asset manager
History of conservative underwriting, even in risky environments
Consistently covers its dividend with net investment income
Supplemental dividends sweeten the pot in strong quarters
Even in tough macro environments, ARCC has managed to preserve NAV and pay out generous dividends. During the COVID market panic, ARCC held the line while others cut.
The risk?
Like all BDCs, ARCC is sensitive to interest rates and credit cycles. But the upside? ARCC’s loans are floating rate. As the Fed hiked rates, Ares earned more income per loan, boosting dividends.
Bottom line:
With a current yield over 9% and one of the best underwriting teams in the BDC sector, ARCC is a reliable retirement income powerhouse. It’s not a meme stock. It’s a cash cow in a tailored suit.
The Case for Mixing These Two
One is a pipeline giant with inflation-hedged tollbooth economics. The other is a floating-rate lender extracting premium yields from small-cap America. Together? You get:
Diversification across sectors (energy infrastructure + private credit)
Blend of stability and opportunism
Payout sustainability with long-term upside
Retirees seeking income can benefit from pairing predictable cash flows (EPD) with yield juice and equity-like upside (ARCC).
Common Objections (and Rebuttals)
“9% is too good to be true.”
It often is. But not always. The key is cash flow coverage, management quality, and balance sheet strength. ARCC and EPD check all three boxes.
“Aren’t MLPs a tax headache?”
K-1s aren’t for everyone. But if you can handle the paperwork (or use tax software), the tax-deferred income from MLPs can be a retirement godsend. Some investors even hold MLPs in taxable accounts to maximize deferral.
“BDCs are risky if rates fall.”
True. But Ares' income model remains competitive even if rates normalize. And its dividend track record shows a commitment to shareholder payouts, even during rate cuts.
Final Thoughts: Powerhouse Criteria
To qualify as a retirement income powerhouse, a stock should:
Yield 7% or more (with upside to 9%+ in total return)
Have strong coverage ratios (not paying out more than it earns)
Be backed by high-quality management and governance
Demonstrate payout stability across economic cycles
Offer inflation or interest-rate hedging mechanisms
Enterprise Products Partners (EPD) and Ares Capital Corporation (ARCC) meet these standards. They may not be flashy, but they offer something far more valuable: resilient income and peace of mind.
If you’re planning for retirement or already in it, these are two names to consider for the portion of your portfolio designed to pay you, not just grow.
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