I Am Swimming In Dividends With +7% Yields

You ever sit back, check your brokerage account, and feel like Scrooge McDuck backstroking through piles of gold coins? That’s me. Except instead of gold, it’s cash dividends hitting my account every month. Cha-ching. I’m not just investing—I’m harvesting. While most people are out there chasing tech rockets and meme stocks like they’re playing Pokémon Go, I’ve chosen a different path. A path paved with boring, beautiful, stable income. I am swimming in dividends—specifically, in sweet, compounding, inflation-smashing yields above 7%.

Before you roll your eyes and mutter, “Yeah right,” let me explain. No, I’m not talking about some Ponzi scheme, crypto scam, or praying that an over-leveraged REIT doesn't cut its dividend again. I'm talking about an intentionally built portfolio of dividend-paying assets that hand me over 7% annually—without setting my hair on fire from risk.

Why +7% Yields Matter (And Why Most People Miss It)

Let’s start with a little perspective. The S&P 500’s average dividend yield is around 1.3%. Treasury bonds? You’re lucky to beat 5% unless you go long or junk. Your savings account is basically a lemonade stand paying you in IOUs. So when you say “7% yield,” most people think you’ve either gone off the rails or found a mythical creature that craps money.

But here’s the thing: 7% is not unreasonable if (big IF) you know where to look, what risks you’re taking, and how to diversify so you don’t drown when the tide goes out. I’ve found that 7% is a sweet spot—a high-enough yield to feel thrilling, but still grounded in reality and sustainability.

Let me break down the pillars of my strategy.

Pillar 1: Business Development Companies (BDCs)

Ah, BDCs. The Wall Street back alley lenders that make banks look like snobs at a country club. These companies lend money to small- and mid-sized businesses that can’t get traditional financing. And they’re legally required to pay out 90% of their income as dividends. That’s right. You get to be the bank, and Uncle Sam makes sure the cash flows straight to your pocket.

Top picks I love swimming in:

ARCC (Ares Capital) – A BDC juggernaut with a strong underwriting process and ~9% yield.
HTGC (Hercules Capital) – Tech-focused BDC with exposure to early-growth companies and a well-covered ~10% yield.
MAIN (Main Street Capital) – A more conservative play with monthly dividends and ~6.5% yield, but it's a fan favorite for a reason.

The trade-off? These aren’t growth rockets. Their share price doesn’t moon—but their payouts do splash reliably into my account every quarter or even every month.

Pillar 2: Real Estate Investment Trusts (REITs)

Want to own a piece of everything from cell towers to self-storage facilities to apartment complexes—without being a landlord who deals with busted toilets at 3 a.m.? Welcome to REITs.

REITs also have that 90% payout rule, meaning much of their income flows to you. Not all REITs are created equal, and chasing the highest-yield ones (looking at you, mortgage REITs) without understanding their balance sheets is a good way to get dividend rug-pulled.

But when done right, REITs deliver.

My dividend swim floaties:

O (Realty Income) – The Monthly Dividend Company. Rock-solid retail and industrial real estate. Yield around 5.5% but it feels like 7% with consistency and compounding.
MPW (Medical Properties Trust) – Now this one is controversial, with recent drama, but I bought when blood was in the streets. Yield is north of 10%—yes, it's risky, but I didn’t go all-in like a fool.
WPC (W.P. Carey) – Industrial and office exposure with international diversification. Yield around 6% and a strong dividend history.

REITs offer not just income but inflation resistance, as many properties have rent escalators. In a world where your grocery bill feels like a horror movie, that’s comforting.

Pillar 3: Covered Call ETFs

This is where it gets spicy. Want income from big tech stocks without hoping they go up? Covered call ETFs collect premiums by selling options on stocks they hold, handing you fat dividends in return.

Example plays:

JEPI (JPMorgan Equity Premium Income ETF) – Hybrid of equity exposure and covered call income. Yield around 7–9%.
QYLD (Global X NASDAQ 100 Covered Call ETF) – Tech-focused. You don’t get growth, but you get a fat paycheck. Over 12% yield. It’s not for the faint-hearted but boy does it pay.
RYLD (Russell 2000 equivalent) – Smaller companies, higher risk, but again, juicy yield.

These ETFs are often misunderstood. Yes, they cap upside. But if you’re in this for income—not chasing the next 10-bagger—you don’t care if the stock rallies 20%. You care about the monthly deposit.

Pillar 4: Dividend Stocks On Steroids

There’s a special place in my heart for what I call Dividend Stocks on Steroids—the ones with high yields and the potential to grow. You gotta dig for them, analyze payout ratios, debt levels, cash flow coverage. But when you find them? It’s like discovering buried treasure.

Some of my personal favorites:

EPD (Enterprise Products Partners) – Energy pipeline behemoth. MLP structure. Over 7% yield, and they’ve raised dividends for years.
MO (Altria Group) – Sin stock, yes, but steady smoker cash cows. Yield north of 8%. Declining industry? Sure. But pricing power and dividend discipline make it a reliable spigot.
PDI (PIMCO Dynamic Income Fund) – Not for amateurs. This closed-end fund is a rollercoaster—but it's throwing off 13%+ right now. Know what you’re buying, though. Leverage is high.

It takes patience to build this part of the portfolio. No hype, no drama. Just due diligence and fat checks.

Pillar 5: Diversification = Don’t Drown

Look—I’m swimming in dividends, but I’m not dumb. High yields aren’t magic. There are always risks:

REITs get hammered when rates rise.
BDCs suffer if small businesses start defaulting.
Covered call ETFs cap your upside and suffer in strong bull runs.
High-yield stocks can cut dividends in a downturn.

So, I diversify across sectors, asset classes, payout structures, and geographies. Some pay monthly. Some quarterly. Some in USD, some internationally. I reinvest where it makes sense, and I keep enough dry powder in short-term T-bills to buy the dip if someone trips over their dividend and falls into a value pit.

The Psychological Dividend: Peace of Mind

Beyond the numbers, let’s talk psychology. When you build a portfolio that spins off thousands of dollars per year—or even per month—without having to sell a single share, something changes.

You stop caring about day-to-day volatility. You stop panicking during earnings calls. You stop refreshing your portfolio five times a day to see if your stock is “green.” You feel… chill.

Cash flow is confidence. Knowing that your portfolio is generating income, even while the market goes haywire, gives you financial and mental freedom. That’s priceless.

How I Built My Dividend Pool (So You Can Too)

You don’t need to be a Wall Street guru or a millionaire to swim in dividends. Here’s how I built mine:

Step 1: Prioritize Income In Your Goals

Most people chase growth because it’s sexy. I decided early on that I want cash flow. I want to live off my portfolio, not sell pieces of it like I’m having a garage sale in my 60s.

Step 2: Use A Core-Satellite Strategy

I built a core of reliable, lower-yield blue-chip dividend growers (think: JNJ, PG, PEP), then layered on high-yield satellites: BDCs, REITs, and covered call ETFs. The core gives stability. The satellites pour champagne.

Step 3: Focus On Cash Flow Coverage, Not Just Yield

A 12% yield looks amazing—until the company cuts it because they couldn’t cover it. I look for sustainable payouts, preferably backed by cash flow, not accounting smoke and mirrors.

Step 4: Reinvest Smartly

In some accounts, I DRIP (dividend reinvestment plan). In others, I take the cash and buy undervalued assets. Sometimes I even spend it—radical idea, I know.

Step 5: Monitor, But Don’t Micro-Manage

I check in quarterly, not daily. I read earnings reports, dividend coverage updates, and news. But I don’t treat my portfolio like a toddler who might swallow a Lego.

The Bottom Line: You Can Swim Too

You don’t need to be rich to swim in dividends. You just need to think like an income investor, do your homework, and commit to building a cash-flow-generating machine that works for you. Whether you’re young and aggressive or older and retiring, dividends provide stability, discipline, and—let’s be honest—a little thrill when you see that money hit your account.

7% yields aren’t just possible—they’re sustainable if you’re smart. My portfolio today delivers monthly income that rivals the rent I used to pay when I was broke. Now, I’m the landlord. I own the pipelines, the loans, the towers, and the cash machines.

And guess what? The pool’s warm. The current is steady. The dividends are flowing.

Come on in. The water’s fine.

Key Takeaways:

+7% yields are attainable through BDCs, REITs, covered call ETFs, and high-yield dividend stocks.
Diversification is key: spread your income sources across asset classes and risk profiles.
Always evaluate dividend sustainability—don’t chase yield blindly.
Dividends change your psychology: from reactive trader to calm, cash-fed investor.
Anyone can build an income portfolio with time, discipline, and the right tools.

Bonus Section: My Monthly Dividend Flow – Sample Snapshot