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High-yield funds are popular passive income machines. However, some are overrated whereas others are underrated by Mr. Market. I discuss one that I think is being overrated by investors and another that is being underrated.

Matthew Miskin, John Hancock Investment Management, joins 'The Exchange' to discuss markets, small and mid-caps and the industrial sector.

The utilities sector is entering an early-stage growth cycle, fueled by surging electricity demand from data centers, EVs, and industrial expansion. Massive capital investments by leading utilities signal confidence in sustained demand, positioning the sector for robust earnings and dividend growth. The Utilities Select Sector SPDR® Fund ETF (XLU) offers diversified, low-cost exposure to top utilities, with strong liquidity and a 2.7% dividend yield.

Retiring on dividend cash flow offers predictable income and long-term growth, making it ideal for offsetting inflation and market volatility risks. I share the key principles for building a low-stress, high-yield portfolio for retirement. I share a model portfolio with numerous picks that combine for a ~7% yield and the potential to deliver inflation-beating dividend growth.

The final trades of the day with CNBC's Melissa Lee and the Fast Money traders.

April's market volatility, driven by tariffs and led by tech sector declines, created opportunities to deploy cash. However, it was an opportunity to reposition my portfolio as well, with 2 swap trades to de-risk my portfolio. There were 2 corporate actions in the last month that also saw two more positions removed from my CEF portfolio, but overall, I was a net buyer for the month.

Electric utilities outperformed in Q1 2025 due to favorable weather, firming demand from data centers, and higher rates for large consumers. Weather patterns improved, boosting power generation and dispelling concerns about adjusting "normal" weather expectations for solar and wind assets. Data centers committed to long-term contracts, solidifying demand and justifying significant capital investments by utilities like PNW, AEP, and Dominion.

This trio of monthly income machines yields over 7%. They have each proven to be dependable income machines and have also outperformed peers over time. They trade at attractive valuations today.

Utilities have outperformed the market—here's why that trend could suddenly reverse. Warren Buffett issued a chilling warning about utilities—investors should take notice. We share our current outlook on utilities stocks as well as some of our top picks of the moment.

Investors might consider some key investment strategies discussed here to navigate the May-October period more effectively.