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I'm Buying These 7-12% Yields For Stress-Free Income

Seeking Alpha
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⚡ Quantum Brief
Two high-yield stocks—MPLX (7.4% yield) and Fidus Investment (11.8% yield)—are recommended as "Buy" for income-focused portfolios, combining diversification with strong cash flow and growth potential. MPLX’s 12.5% annual distribution growth is backed by fee-based contracts and natural gas/NGL infrastructure projects, ensuring stable, long-term returns despite market volatility. Fidus Investment trades at a 10% discount to net asset value, featuring disciplined underwriting and a low-risk first-lien loan portfolio with minimal non-accruals, enhancing yield reliability. Both stocks offer immediate income diversification, with MPLX’s energy exposure complementing Fidus’s credit-focused strategy, reducing portfolio risk while targeting 7–12% yields. The analysis emphasizes defensive, high-yield investments as a hedge against market uncertainty, prioritizing steady dividends over speculative growth for long-term stability.
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Gen AlphaInvesting GroupFollow5ShareSavePlay(12min)Comments(2)SummaryMPLX and Fidus Investment are both rated ‘Buy’ for durable, high-yield income portfolios.MPLX offers a 7.4% yield, robust cash flow, and 12.5% expected annual distribution growth, underpinned by fee-based contracts and major natural gas/NGL projects.FDUS trades at a 10% discount to NAV, has an 11.8% yield, disciplined underwriting, and a resilient first-lien loan portfolio with low non-accruals.Together, MPLX and FDUS provide immediate diversification and high income, with strong long-term total return potential.Looking for a portfolio of ideas like this one? Members of iREIT®+HOYA Capital get exclusive access to our subscriber-only portfolios. Learn More » ISerg/iStock via Getty Images The only certainty about stock prices is that they are going to be volatile. That’s why I like income investments, in that their dividend streams give some semblance of normalcy in an otherwise crazy market. Dividends provide flexibilityThis article was written byGen Alpha23.01K FollowersFollowI am Gen Alpha. I have more than 14 years of investment experience, and an MBA in Finance. I focus on stocks that are more defensive in nature, with a medium- to long-term horizon. I provide high-yield, dividend growth investment ideas in the investing group iREIT®+HOYA Capital. The group helps investors achieve dependable monthly income, portfolio diversification, and inflation hedging. It provides investment research on REITs, ETFs, closed-end funds, preferreds, and dividend champions across asset classes. It offers income-focused portfolios targeting dividend yields up to 10%. Learn more.Analyst’s Disclosure: I/we have a beneficial long position in the shares of MPLX, FDUS either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. I am not an investment advisor. This article is for informational purposes and does not constitute as financial advice. Readers are encouraged and expected to perform due diligence and draw their own conclusions prior to making any investment decisions.Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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