Authored by: Treading Softly
Everyone loves an underdog story – someone who defies the odds to achieve success. This narrative is uniquely captured in the concept behind “Moneyball,” where, instead of pursuing all-star players, the focus is on building a team that consistently delivers winning results. Similarly, in the world of finance, I prefer a portfolio that earns a steady income, akin to base hits in baseball, ensuring a consistent stream of dividends.
Today, let’s shine a light on two consistent players in my portfolio, delivering strong income but often overlooked by the market. Let’s dive in!
Leveraging Consistent Performance – CSWC with a 10.6% Yield
Capital Southwest (CSWC) operates as a business development company (BDC), catering to smaller businesses unable to access public markets. Thanks to high interest rates, BDCs have flourished, and CSWC has demonstrated consistent dividend growth. With robust net investment income and a focus on leveraging favorable macro conditions, CSWC’s dividends are on an upward trajectory, rewarding shareholders with steady growth.
Diversifying Income Streams – EPR Offering a 7.2% Yield
EPR Properties recently reported a solid quarter in line with guidance. Despite challenges posed by COVID, EPR’s strategic measures, including managing deferred rents and conservative investment approaches, manifest its strong financial position. With a robust balance sheet and a prudent approach to dividend growth, EPR continues to be a reliable income provider in the face of market uncertainties.
Embracing Consistency for Retirement Enrichment
The beauty of income investing lies in the consistent and reliable income stream it offers, aligning with the goals of retirement planning. The focus shifts from seeking popular or trending stocks to embracing a method that prioritizes stable and growing dividends as a primary source of returns. This income-driven approach secures financial stability and aligns with retirement goals, ensuring a stress-free and rewarding future.