Supercharge Early Retirement with Underrated 7-8% Yielding Dividend Picks

As a finance expert with experience at Bloomberg, the article suggests that retirees can supercharge their retirement by planning to live off of monthly dividends. The article recommends investing in stocks with a 7-8% yield, which can provide a steady income stream. The article also emphasizes the importance of planning and setting a budget to ensure a comfortable retirement.

Title: Supercharging Retirement Income with Monthly Dividends

Retirees seeking to enhance their retirement income can look to monthly dividends as a reliable source of steady income. By investing in stocks with a 7-8% yield, retirees can create a comfortable and sustainable financial future. This strategy, as discussed in various financial articles, emphasizes the importance of planning and budgeting to ensure a comfortable retirement.

Main Street Capital (MAIN), a financial services company, has been a standout example in this regard. In its latest announcement, Main Street Capital has increased its regular monthly dividends by 2.0% for Q3 2025, alongside a $0.30 supplemental dividend payable in June 2025. This move brings the total dividend for shareholders to $1.065 per share for the period, offering an impressive annualized yield of 8.0% [1].

For investors looking to retire comfortably, it is crucial to consider the stability and reliability of the dividend payments. Main Street Capital has maintained a consistent dividend policy since its IPO in 2007, with cumulative dividends reaching $45.79 per share. This consistency is a testament to the company's commitment to sustainable shareholder returns backed by robust underlying business fundamentals [1].

While Main Street Capital offers an attractive yield, it is essential to consider other investment options that provide similar or better returns. For example, FS Credit Opportunities (FSCO) has demonstrated remarkable NAV stability, even during volatile market conditions. In April 2025, while the S&P 500 experienced a 12% drawdown, FSCO's NAV remained unchanged. This stability is attributed to FSCO's focus on senior secured and structured credit strategies, which tend to exhibit lower correlation to broader equity market movements [2].

For retirees who may not have saved enough for retirement, alternative strategies can be employed to supplement income. Downsizing a home or getting rid of a car can significantly reduce expenses, making it easier to live off monthly dividends. Additionally, delaying Social Security benefits can provide a higher monthly income, further enhancing retirement comfort [3].

In conclusion, investing in stocks with a 7-8% yield and planning for a comfortable retirement can be achieved through careful financial planning and strategic investment. By considering options like Main Street Capital and FS Credit Opportunities, retirees can supercharge their retirement income and ensure a comfortable financial future.

References:
[1] https://www.gurufocus.com/news/2831847/main-street-announces-third-quarter-2025-regular-monthly-dividends-including-a-monthly-dividend-increase-and-supplemental-dividend-payable-in-june-2025-main-stock-news?mobile=true
[2] https://www.forbes.com/sites/brettowens/2025/05/08/this-11-dividend-is-ideal-for-retirement-income-investors/
[3] https://www.fool.com/retirement/2025/05/07/short-on-savings-3-alternatives-to-working-in-reti/