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I'm Buying Up To 13% Yield For Future Retirement Income

Seeking Alpha
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⚡ Quantum Brief
A barbell income strategy pairs high-yield Crescent Capital BDC (13.1% yield) with stable VICI Properties (6.3% yield) to hedge against shifting interest rate cycles, targeting retirees seeking diversified portfolio income. Crescent Capital BDC trades at a 33% discount to net asset value, offering a conservative first-lien floating-rate loan portfolio designed to benefit from rising rates while mitigating credit risk. VICI Properties delivers steady cash flow via triple-net leases on premium gaming and experiential real estate, ensuring long-term revenue stability and 6.3% adjusted funds from operations growth. Both assets are undervalued historically, presenting total return potential with high-income yields, ideal for defensive portfolios amid economic uncertainty and inflation pressures. The strategy combines aggressive yield with stability, leveraging BDCs’ rate sensitivity and REITs’ resilience to balance risk across market conditions.
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Gen AlphaInvesting GroupFollow5ShareSavePlay(11min)CommentsSummaryCrescent Capital BDC and VICI Properties offer a barbell approach to income investing across interest rate cycles.CCAP provides a 13.1% yield, trades at a 33% discount to NAV, and maintains a conservative, first-lien, floating-rate loan portfolio.VICI delivers a 6.3% yield, robust AFFO growth, and long-term revenue stability via triple-net leases on premier gaming and experiential properties.Both CCAP and VICI trade at historically low valuations, presenting attractive total return and high-income opportunities for diversified portfolios.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 It pays to take a barbell approach toward investing for various interest rate environments. This can be especially practical for retirees who depend on portfolio income for a wide variety of scenarios. That's why REITs and BDCs makeThis article was written byGen Alpha23K 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 CCAP, VICI 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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