Boomers Are Quietly Buying These 7-9% ‘Forever Income’ Dividend Stocks
With the 10-year Treasury yielding above 5%, most dividend stocks no longer clear the bar, but five names spanning pipelines, tobacco, private credit, and senior care still do and have the cash flow records to prove it.
Income investors face a higher hurdle than in years past: the 10-year Treasury yield stands at 5.31%, the highest reading in a month. A dividend stock now has to pay more than that and keep paying through recessions, rate swings, and industry shocks. The five names below fit that test. They are two fee-based pipeline partnerships, a tobacco giant, the largest business development company, and a skilled nursing landlord. Each pays above the Treasury benchmark, and each supports the payout with coverage, cash flow, and a long payment record.
Enterprise Products Partners: 1.9x Coverage on a Payout That Keeps Climbing
Enterprise Products Partners (NYSE:EPD | EPD Price Prediction) is a high-yield anchor. Units trade at $36.89 and yield 5.99%. The latest quarterly distribution of $0.56 works out to $2.24 annualized.
Dividend safety: Operational distributable cash flow reached $2.3 billion in the second quarter, which is 1.9x coverage of the cash distribution. Adjusted EBITDA hit a record $2.83 billion, up 17% year over year. Even after funding growth projects, the partnership still repurchased $159 million of units in the quarter. Its quarterly payments date back to 1999, and distributions have risen from $0.45 per quarter in 2021 to their current level.
Bull case: Organic growth projects under construction total $6.5 billion for the partnership, including an LPG export expansion and two new Permian gas plants. Those projects should support future raises like the latest 2.8% year-over-year increase. The units trade at a forward P/E of 12x, and Jim Cramer recently called Enterprise “a really well-run company.”
Risk: NGL prices still affect results, and export volumes have settled back after a spring surge linked to Middle East disruptions. The units are down 5.26% over the past month.
MPLX: Guided Double-Digit Distribution Growth Through 2027
This ultra-high-yield pipeline partnership is MPLX (NYSE:MPLX). It yields 7.51% at a unit price of $57.26. The quarterly distribution of $1.0765 totals $4.306 a year.
Dividend safety: Distributable cash flow came in at $1.45 billion in the second quarter. Leverage is 3.7x, below management’s 4.0x target. The partnership has about $1.0 billion left under its unit repurchase approvals. Distribution increases have come every year, from $0.775 to $0.85, then $0.9565, then the current rate.
Bull case: Management plans 12.5% annual distribution growth in both 2026 and 2027. That is rare visibility for an income investor. It raised growth capex to $2.9 billion, with more than 90% going to gas and NGL infrastructure in the Permian and Marcellus. The Natural Gas and NGL segment grew adjusted EBITDA 11% year over year to $614 million, and the units trade at a forward P/E of 12x.
Risk: Borrowing is getting more expensive. Interest expense rose to $291 million from $229 million as the debt load grew to fund expansion.
Altria Group: Raises in Every Year Since 2009 and a Fresh Hike
Altria (NYSE:MO) qualifies as ultra-high-yield at 6.25%, with shares at $69.40. The company just raised its quarterly dividend to $1.11 from $1.06, which lifts the forward annual payout to $4.44.
Dividend safety: Management guides full-year adjusted EPS to $5.56 to $5.72, which sits well above the $4.44 forward dividend. Altria paid $7.0 billion in dividends last year and returned $8 billion to shareholders in total. The dividend record shows a raise in every year from 2009, when the quarterly payout was $0.32, through the latest increase. Negative stockholders’ equity reflects years of buybacks rather than weak operations.
Bull case: Pricing power keeps the cash coming. The smokeable segment runs at a 65.1% margin, and $720 million remained on the buyback after the first quarter, which helps support per-share growth. The forward P/E is 12x, and shares are up 26.2% year to date.
Risk: Altria’s core market is shrinking. Marlboro’s retail share slipped 1.4 pts to 39.7%, and industry cigarette volumes are falling 5% to 10%.
Ares Capital: A 10.2% Yield With $1.38 Per Share in Reserve
The fattest payout in this group goes to Ares Capital (NASDAQ:ARCC), with an ultra-high yield of 10.2% at $18.38. It pays $0.48 a quarter, or $1.92 a year.
Dividend safety: Second-quarter core EPS of $0.47 came in line with estimates and slightly below the quarterly dividend. Management pointed to the full-year picture instead: “Over the last 12 months, core earnings have exceeded our regular dividend, while an additional 15 cents per share of net realized gains has provided further support for our overall dividend-paying capacity.” Ares also has taxable-income spillover of about $988 million, or $1.38 per share, held in reserve. Leverage is 1.12 times net of cash, and the company has about $6 billion of available liquidity. The dividend has held at $0.48 every quarter since early 2023.
Bull case: About 71% of the $29.35 billion portfolio is floating rate, so high Treasury yields help income. The shares trade at 0.99 times book value, which means investors pay roughly NAV for a lender spread across 619 companies.
Risk: Credit is slipping. Net unrealized losses reached $183 million in the second quarter, NAV per share fell to $19.35 from $19.94, and non-accruals rose to 2.4% from 1.8%. That is still below the company’s roughly 3% post-financial-crisis average.
Omega Healthcare Investors: Boomer Demand Meets a Freshly Raised Dividend
Omega Healthcare Investors (NYSE:OHI) is a high-yield healthcare REIT. It yields 5.93% at $44.09. The quarterly dividend just rose to $0.68 after holding at $0.67 since 2020, which brings the forward annual payout to $2.72.
Dividend safety: Second-quarter AFFO of $0.83 per share and FAD of $0.78 per share both exceed the new dividend. Full-year AFFO guidance went up to $3.22 to $3.26 per share. Operator coverage improved to 1.65 times. Leverage is 3.3 times and fixed-charge coverage is 6.5 times, after asset-sale proceeds brought the revolver balance down to $6 million. Omega has paid quarterly dividends since 1999.
Bull case: Demographics are now working in Omega’s favor. Outgoing CEO Taylor Pickett said on his final earnings call: “Now, however, the long-anticipated baby boomer aging is here and is showing up in demand for both SNFs and senior housing.” Matthew Gourmand, who leads the team taking over, called “6-7% annualized FAD growth” very achievable.
Risk: Tenant trouble remains. Operator Genesis Healthcare is in Chapter 11 with $148.5 million of Omega loans outstanding, and the shares fell 5.26% over the past week.
Five Income Streams Built to Outlast a High-Rate Market
Each of these payouts is supported by something specific. Enterprise covers its distribution 1.9x, MPLX has guided raises through 2027, Altria has increased its dividend every year since 2009, Ares Capital holds $1.38 per share in spillover, and Omega covers its dividend with FAD. Yields run from Omega’s 5.93% to Ares Capital’s 10.2%, and all five pay more than the 10-year Treasury. Together they spread retirement income across pipelines, consumer staples, private credit, and senior care. The appeal for boomers is simple: collect the checks without ever having to sell a share. That’s the same ladder approach we laid out in a free guide to building lifetime dividend income. For investors who need a paycheck they can count on, that mix of coverage and diversification matters as much as the yield.
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Lee Jackson has covered Wall Street analysts' equity and debt research and equity strategy daily for 24/7 Wall St. since 2012. His broad, diverse career, including a stint as creative services director at an NBC affiliate in Austin, Texas, gives him unique insight into the financial industry.
Lee Jackson's journey in the financial industry spans more than 30 years, including nearly two decades as an institutional equity salesperson at Bear Stearns, Lehman Brothers, and Morgan Stanley. His career spanned pivotal sell-side Wall Street events, from the dot-com rise and bubble to the Long-Term Capital Management debacle, 9/11, and the Great Recession of 2008. This reflects his resilience and adaptability amid market volatility.
Lee Jackson’s practical financial industry experience, gained through a career at some of the biggest banks and brokerage firms, is complemented by a lifetime of writing across various platforms. This unique combination allows him to shed light on the intricacies of Wall Street in a way only someone with deep insider experience and knowledge can. Moreover, his extensive network across Wall Street continues to provide direct access for him and 24/7 Wall St., a privilege few firms enjoy.
Since 2012, Jackson’s work for 24/7 Wall St. has been featured in Barron’s, Yahoo Finance, MarketWatch, Business Insider, TradingView, Real Money, The Street, Seeking Alpha, Benzinga, and other media outlets. He attended the prestigious Cranbrook Schools in Bloomfield Hills, Michigan, and has a degree in broadcasting from the Specs Howard School of Media Arts.
