Tired of Unreliable Dividends? Check Out These 4 High-Yield Alternatives

Are you tired of relying solely on dividend stocks for passive income? While they can be a great source of cash flow, putting all your eggs in the stock market basket comes with serious risks. Just look at what happened with AT&T Inc. T in 2022.

For decades, AT&T was a beacon of stability for income investors, reliably increasing its dividend year after year. But then, seemingly out of nowhere, the telecom giant slashed its payout by a staggering 47%. It was a painful reminder that even the most trusted dividend darlings can leave investors high and dry.

To be fair, AT&T still offers a tempting 6.7% yield today. But its total return since the cut is a meager 3.3%, weighed down by an 8% drop in share price. The AT&T saga underscores the dangers of over-relying on any one company or sector for income.

But here’s the good news: There are plenty of alternative income investments out there that can provide more stable, reliable returns without the stomach-churning volatility of the stock market. And we’ve done the legwork to uncover four of the most compelling options, with yields ranging from 6% all the way up to 14%.

Stable Returns for Risk-Averse Investors: The Ascent Income Fund

For the risk-averse, the Ascent Income Fund is a standout choice. This diversified real estate debt fund is capitalizing on rising interest rates and reduced lending competition to deliver a target annualized net return of 11%-12%, with quarterly distributions. By focusing on first-lien debt investments across a range of borrowers, geographies and property types, the Fund aims to mitigate risk and provide the stability income-seekers crave.

Click here to learn more about the Ascent Income Fund.

6%+ Yield for Short-Term Investors: Alpine Notes

Looking for a shorter-term play? Check out EquityMultiple’s Alpine Notes, which offer fixed annual returns of 6% to 7.4% for investment terms of just 3, 6 or 9 months. These innovative cash management tools not only provide competitive yields, but also come with First Loss Protection – meaning EquityMultiple has skin in the game, investing alongside you in a subordinate position. With over $78M invested across more than 50 Alpine Notes series, they’ve built a solid track record.

Discover how much you could earn with Alpine Notes.

Stable Income Backed by the Growing Home Equity Market: Cityfunds Yield Fund

For investors who want to tap into the booming home equity market, the Cityfunds Yield fund is an intriguing option. Targeting an 8% annualized yield (with a 7% guaranteed floor), the fund invests in a diversified pool of collateralized real estate loans, including home equity agreement-backed notes and short-term mortgage notes. With quarterly distributions and a low $500 minimum investment, it’s an accessible way to get exposure to this growing asset class.

Explore the Yield fund and other Cityfund offerings here.

14% Target Yield for Growth-Oriented Investors: Express Car Wash

And for those willing to take on a bit more risk in pursuit of outsized returns, feast your eyes on the Express Car Wash investment. With a juicy 14% target return and monthly distributions, this senior loan opportunity is funding the construction of a new Flo’s Express Car Wash in a prime LA location. And it’s not just a one-off – EquityMultiple has a proven track record in the space, with eight car wash exits delivering annualized returns of 13.40% to 85.00%.

Get the full scoop on the Express Car Wash investment.

The bottom line? Diversifying beyond dividend stocks is a smart move for any income-focused investor. While AT&T’s dividend cut dealt a blow to many portfolios, it also served as a wake-up call about the risks of over-concentration. By spreading your bets across uncorrelated alternative assets like these, you can potentially lock in more stable, reliable cash flows – without losing sleep over every market dip.

Of course, no investment is without risk, and due diligence is always a must. But if you’re looking to level up your passive income game in the wake of the AT&T disappointment, these four high-yield options are a great place to start.

Check out the opportunities best suited for your investment goals and start building a more resilient income portfolio today.