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Forget JEPI: These 5 Stocks Deliver Better Returns and Rock-Solid Distributions

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JEPI delivers 8.21% yield through covered calls on blue-chip stocks.
ARMOUR Residential REIT offers 17.20% yield with 24 months of stable monthly dividends.
Main Street Capital posts 95.6% profit margin and 19.1% ROE despite lowest 4.77% yield.
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By William Temple Published Dec 12, 2025 at 4:45 AM EST

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Forget JEPI: These 5 Stocks Deliver Better Returns and Rock-Solid Distributions — © 24/7 Wall St.

JEPI has become a popular income investment since its 2020 launch, delivering an 8.21% yield through a covered call strategy on blue-chip stocks. These five stocks deliver superior distributions backed by strong fundamentals and proven track records.

5. Enterprise Products Partners (EPD) – The Stability Play

Enterprise Products Partners offers a 6.68% distribution yield through its massive midstream energy infrastructure. While this trails JEPI’s 8.21% yield, EPD compensates with exceptional stability and scale.

The Houston-based partnership operates pipelines and facilities for transporting natural gas, NGLs, crude oil, and petrochemicals across North America. With $69.74 billion in market cap and $53 billion in trailing revenue, EPD dwarfs the other stocks on this list.

Third quarter 2025 results demonstrated consistent cash generation: net income reached $1.34 billion on revenue of $12 billion, with EBITDA of $2.36 billion. Operating cash flow of $1.74 billion exceeded capex of $1.96 billion, though the partnership maintains flexibility with total assets of $77.8 billion against debt of $33.6 billion.

EPD’s 19.7% return on equity leads all five stocks, while its 0.575 beta indicates the lowest volatility. The partnership has maintained its $0.54 quarterly distribution with 32.9% insider ownership demonstrating strong management alignment. Analysts assign 12 buy ratings versus 7 holds, with a target price of $35.83.

The MLP structure requires K-1 tax forms, adding complexity compared to JEPI’s 1099, but EPD’s scale and 19.7% ROE make it the quality choice for risk-averse income investors.

4. Main Street Capital (MAIN) – The Quality Premium

Main Street Capital delivers a 4.77% yield—the lowest on this list and below JEPI’s 8.21%—but compensates with extraordinary profitability metrics that suggest significant growth potential alongside income.

This business development company focuses on debt and equity investments in lower middle market companies. Third quarter 2025 guidance projected distributable net investment income of $1.01 to $1.05 per share, with net investment income of $0.95 to $0.99 per share. Revenue reached $202.3 million with net income of $92.5 million.

Main Street’s operational excellence stands out: a 95.6% profit margin and 87.2% operating margin demonstrate exceptional efficiency. The 19.1% return on equity nearly doubles ARCC’s 10.1% ROE. Net asset value per share reached $32.74 to $32.82 in Q3, marking the 13th consecutive quarter of NAV growth.

The company maintains a quarterly dividend of $0.75 with total assets of $5.3 billion and shareholders equity of $2.9 billion. Portfolio quality remains strong with just 1.2% of investments on non-accrual status. Management targets 16%+ quarterly annualized ROE.

Trading at a P/E of 10, Main Street offers income investors a premium quality alternative with growth characteristics that JEPI’s covered call strategy inherently limits.

3. Ares Capital (ARCC) – The Analyst Favorite

Ares Capital combines a 9.14% yield with overwhelming analyst support and 21 years of uninterrupted quarterly dividends. The BDC has maintained its $0.48 quarterly dividend for 10 consecutive quarters since Q1 2023.

Third quarter 2025 estimates project EPS of $0.51 on revenue of $784 million. Net income reached $404 million on total assets of $30.8 billion and shareholders equity of $14.3 billion. Net interest income of $366 million supports the dividend from a $28.7 billion investment portfolio focused on middle-market lending.

Ares Capital’s dividend history demonstrates resilience: the company maintained payments even during the 2008-2009 financial crisis, though it reduced the quarterly distribution from $0.42 to $0.35. The dividend has grown 60% over 21 years, from $0.30 in 2004 to $0.48 currently.

Analysts strongly favor ARCC with 13 buy ratings versus just 2 holds and zero sells, targeting $22.64. The stock trades at a P/E of 11 and price-to-book of 1.05, essentially at book value of $20 per share. A 45.2% profit margin and 0.619 beta provide strong fundamentals with below-market volatility.

2. AGNC Investment (AGNC) – The Reliable High-Yielder

AGNC Investment delivers a 13.90% yield—69% higher than JEPI—with remarkable consistency for a mortgage REIT. The company has maintained its $0.12 monthly dividend for 4.5 years since June 2021, navigating volatile interest rate environments without cuts.

Third quarter 2025 results beat expectations: EPS of $0.72 versus estimates of $0.39, with revenue of $903 million and net income of $806 million. The Agency MBS portfolio totaled $90.8 billion against total assets of $109 billion and shareholders equity of $11.4 billion.

Book value stands at $8.83 per share with the stock trading at a P/E of 15. AGNC generated a 10.6% economic return on tangible equity in Q3 while maintaining leverage at 7.6x—prudent for the mortgage REIT sector.

A $10,000 investment in AGNC generates $1,390 annually ($115.83 monthly) compared to $821 from JEPI—an extra $569 in annual income.

1. ARMOUR Residential REIT (ARR) – The Income Champion

ARMOUR Residential REIT claims the top position with a 17.20% yield—109% higher than JEPI and the highest among all five stocks. At this yield, a $10,000 investment generates $1,720 annually ($143.33 monthly), delivering $899 more than JEPI.

ARR has maintained its $0.24 monthly dividend for 24 consecutive months since January 2024. Third quarter 2025 non-GAAP EPS of $0.72 missed estimates of $0.79, but revenue of $194.5 million beat expectations of $64 million substantially. GAAP net income reached $156.3 million.

Book value per share of $17.49 grew 3.5% quarter-over-quarter, demonstrating improving fundamentals. The $18.2 billion Agency MBS portfolio benefits from $1.1 billion in liquidity. Book value of $19.02 per share provides a cushion, though the stock trades at a P/E of 88.

ARR’s dividend history shows more volatility than AGNC: the company increased from $0.08 to $0.40 monthly in September 2023, then cut to $0.24 in January 2024. However, the 24-month stability at current levels suggests management has found a sustainable payout level.

For investors prioritizing maximum current income over stability, ARR delivers unmatched yield backed by recent book value growth and consistent recent payments.

An infographic titled 'Income Stocks Better Than JEPI' compares the JEPI benchmark to five alternative income stocks. JEPI's yield is shown as 8.21% with a yellow horizontal bar. Below, five stocks are listed, each with a yield, a brief description, an icon, and detailed financial attributes. Enterprise Products Partners (EPD) has a 6.68% yield (yellow bar), highlighting stability. Main Street Capital (MAIN) has a 4.77% yield (yellow bar), highlighting quality and growth. Ares Capital (ARCC) has a 9.14% yield (green bar), noted as an analyst favorite with higher yield. AGNC Investment (AGNC) has a 13.90% yield (green bar), identified as a reliable high-yielder. ARMOUR Residential REIT (ARR) has a 17.20% yield (green bar), presented as the income champion. Icons include gears for Main Street Capital and a house with coins for ARMOUR Residential REIT.

This infographic compares the JEPI benchmark yield to five alternative income stocks, highlighting their unique benefits in yield, stability, quality, and growth potential.