The Good, The Bad, and The Ugly: My Top 10 Income Investments Update

Most income portfolios don’t stay static.

Back in November 2025, I shared my Top 10 income investments. Since then, I’ve sold two positions, and one has dropped out of the top 10.

Time for an update—what’s working, what’s not, and what’s changed.

CEFS – Still a Core Holding

CEFS yields around 7.9% and remains one of my favorites.

It’s a fund-of-funds, which means built-in diversification across multiple income strategies. More importantly, it has a history of steady income plus occasional special distributions.

Even through major events—the pandemic, 2022 rate hikes, and recent volatility—it has consistently recovered.

Long-term price resilience through multiple market shocks, with recoveries following each major drawdown.

QQQI – Turning Volatility Into Income

QQQI yields about 14% and continues to deliver.

It uses covered calls on the Nasdaq 100 to convert growth into income. Distributions are stable, with only minor dips during volatility spikes.

The tradeoff is simple: slightly underperform in strong bull markets, but generate consistent cash flow.

QQQI vs Nasdaq total return showing income trade-off versus pure growth.

GPIX – Growth Tilted Income

GPIX yields about 8.3%.

Like QQQI, it uses options—but on the S&P 500. The key difference: more growth, less income.

GPIX outperforming peers like SPYI and JEPI in total return.

PFFA – Preferred Income Done Better

PFFA yields ~9.5% and provides exposure to over 180 preferred stocks.

Compared to the larger PFF, PFFA delivers stronger total returns and more consistent income.

PFFA significantly outperforming PFF over a 5-year period.

International Exposure – NIHI & IDVO

NIHI yields ~10% and adds global diversification plus currency exposure.

It holds IEFA and boosts income through options.

IDVO complements this with a more growth-focused approach.

NIHI holdings showing global exposure led by companies like ASML.

BDC Exposure – ARCC & PBDC

ARCC yields ~10.6% and remains a reliable income generator with a long track record.

PBDC offers diversified exposure across multiple BDCs, yielding ~12%.

The key here is consistency—income remains strong even during market stress.

ARCC distribution history highlighting long-term consistency, including regular and supplemental payouts.

QDVO – Growth + Income Hybrid

QDVO yields ~11%.

It’s more volatile, but its strength lies in total return. With a concentrated, tech-heavy portfolio, it has kept pace with the Nasdaq.

QDVO total return tracking closely with the Nasdaq 100, highlighting its growth-oriented strategy.

FSCO – The Risky One

FSCO yields over 14%, but comes with trade-offs.

A recent dividend cut reflects weaker income generation. However, the fund trades at a large discount to NAV, which offsets some concern.

For now, I’m holding—not adding, not selling.

FSCO distribution history showing recent cuts following a period of elevated payouts.

What Changed

I exited positions like JBBB due to declining yields in a falling rate environment.

Others, like BST, became less predictable after strategy changes.

This is part of managing an income portfolio—adjusting when conditions change.

Current yield snapshot across all 10 holdings, highlighting a diversified income portfolio averaging just over 10%.

The Big Picture

These 10 holdings reflect my approach:

• Diversification across asset classes

• Balance between income and growth

• Focus on sustainability over time

To learn more, click here for the full Review.

Want to see how these funds fit into a real-world retirement strategy? I share my full portfolio and monthly updates for free, here: Armchair Insider. If you want to learn from other Income Investors (I do!), check out the Armchair Insider Lounge.