These Income Machines Keep Pumping Cash: Yields Over 7.5%
- High Dividend Opportunities
- Mar 27
- 3 min read
We trust countless things in life without a second thought—like a park bench we've never sat on before. We assume it will hold our weight without question.
Yet in the market, blind trust is rare. Due diligence is essential, and if you can’t do it yourself, using the right tools is critical. That’s why my Income Method prioritizes evaluating a company’s fundamentals before I invest, ensuring every dollar works for me by generating steady cash flow.
Today, I’ll highlight two investment opportunities designed to do just that—pumping cash into your account month after month.
Let’s dive in!
Pick 1: BTO – Yield 7.6%
The deregulation we saw during the first Trump Administration benefited small and regional banks, and trade tensions boosted loan demand and capital markets. We expect similar tailwinds for the financial sector under the current administration.
John Hancock Financial Opportunities Fund (BTO) focuses on financial services, spanning banks, capital markets, insurance, and mREITs. With 195 holdings and top positions making up just 16% of assets, BTO offers broad exposure to this vital sector.
Since 1994, BTO has navigated major market crises while delivering steady distributions through the Dot.com bubble, the Great Financial Crisis, and the COVID-19 pandemic. Over the past decade, BTO has seen volatile changes in its NAV (net asset value), including the most recent effects of the regional bank failures in 2023. Source
Portfolio Visualizer
In 2024, its payouts were 73% from long-term gains and 27% QDI income, and its $0.65/share quarterly distribution calculates to a 7.6% yield. With banks positioned for growth in 2025, BTO offers diversified exposure and attractive income potential.
Pick 2: SLRC – Yield 9.6%
SLR Investment Corp. (SLRC) is a BDC specializing in Cash Flow Loans, Equipment Financing, Asset-Based Loans, and Life Sciences lending. With a portfolio spanning ~890 issuers across 110 industries, its average exposure per issuer is just 0.1%, ensuring broad diversification.
SLRC maintains a net debt-to-equity ratio of 1.03x, leaving room for growth as industrial activity rises. In Q4, net investment income of $23.8 million ($0.44 per share) exceeded dividends for the 6th straight quarter.
In 2024, SLRC invested $1.35 billion while experiencing $1.37 billion in repayments, with strong inflows into Asset-Based Lending and Equipment Financing—sectors poised to benefit from the Trump Administration’s trade policies and domestic industry growth.
With 98.2% of its portfolio in senior secured loans and 99.6% performing on a fair value basis, SLRC continues to show strong credit performance, portfolio diversification, and disciplined underwriting.
Conclusion
We trust buildings we’ve never personally inspected to stand strong—why should investing be any different? Instead of blind faith, do your due diligence by researching trusted sources and understanding your holdings before adding them to your portfolio.
I applaud you for taking the time to read and evaluate investments before committing your hard-earned money. The opportunities we discussed today are designed to generate steady cash flow straight from the market into your bank account, giving you the freedom to use it however you see fit.
In retirement, cash flow is king. It’s not about how many assets you own or titles you hold—it’s about having liquid cash when you need it. That’s why I believe in building a portfolio that naturally replenishes itself, creating a steady stream of growing income rather than a dwindling pool of savings that slowly loses out to inflation.
That’s the power of my Income Method. That’s the power of income investing.
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