35-Year-Old Earning $10,460 in Dividends With $133,000 Invested Reveals His Top 8 Stocks

December 28, 2024

35-Year-Old Earning $10,460 in Dividends With $133,000 Invested Reveals His Top 8 Stocks
35-Year-Old Earning $10,460 in Dividends With $133,000 Invested Reveals His Top 8 Stocks

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Investors are weighing their next moves as the Federal Reserve continues to cut rates and indicate a cautious approach moving forward, while AI stocks like Nvidia are slipping amid valuation concerns. Dividend stocks are back in the limelight in this context. A Raymond James report shared historical data that showed that stocks generally struggle in falling rate environments, but dividend-paying equities offer a cushion, helping investors manage downside risks.

Earlier in December, a dividend investor shared screenshots of his portfolio and income details on r/Dividends, a community of income investors on Reddit with 637,000 followers. The investor asked for suggestions from fellow investors on which stocks he should add to or remove from his portfolio.

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He said his portfolio size is $133,000, while his portfolio screenshots showed his annual dividend income was $10,461, or $871 per month. The portfolio’s dividend yield was about 7.86%.

“Our plan is to use the current income to reinvest as DRIP. But, we want about 4-5 years to travel around the world for 1-2 years and live off dividends. Also, we put more every month from the paycheck,” the investor, 35, said in a comment during the discussion on his post.

Based on the portfolio screenshots he publicly shared, let’s examine some of the investor’s key positions.

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Ares Capital (ARCC)

Number of Shares: 300

Dividend income: $576

Ares Capital was one of the top stocks in the investor’s portfolio, earning $10,460 per month with a $133,000 investment. Ares Capital is a business development company. According to Benzinga Pro, it has a dividend yield of about 9%. The investor had 300 ARCC shares in his portfolio and he collected about $576 in dividends from this investment. The stock is up 4.4% so far this year.

Amplify CWP (DIVO)

Number of shares: 95

Dividend income: $176

Amplify CWP Enhanced Dividend Income ETF (DIVO) provides investors exposure to dividend growth stocks and generates income by writing call options on individual stocks. It pays monthly and has a distribution rate of about 4.8%. Last month, the fund returned 6.29%, while the benchmark, the S&P 500 Index, returned 5.87%.

JPMorgan Equity Premium Income ETF 

Number of shares: 300

Dividend income: $1,146.50

JPMorgan Equity Premium Income ETF (NYSE:JEPI) makes money by investing in some of the most notable large-cap U.S. stocks and selling call options. JEPI is ideal for those looking for exposure to defensive stocks. JEPI usually underperforms during bull markets but protects investors against huge losses during bear markets, as most of its portfolio consists of large, defensive equities.

The investor earning $10,460 per year had 300 shares of the ETF and collected about $1,146 in annual dividend income from this investment.

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JPMorgan Nasdaq Equity Premium Income ETF (JEPQ)

Number of shares: 1,200

Dividend income: $6,455.94

The investor had 1,200 JPMorgan Nasdaq Equity Premium Income ETF (JEPQ) shares in his portfolio. JPMorgan Nasdaq Equity Premium Income ETF (JEPQ) is a high-yield covered call ETF that distributes monthly dividend income. The ETF invests in Nasdaq companies and generates extra income by selling call options. According to Benzinga Pro, it yields about 9%.

Medical Properties Trust (MPW)

Number of shares: 1,500

Dividend income: $480.00

Health care REIT Medical Properties Trust was one of the key stocks in the portfolio, generating about $10,460 per year and about $480 in annual dividend income for the investor.

Here is what the investor said about MPW during the discussion on his post:

“I entered a position around $5$. I do believe they will weather the storm of the funds rate.”

Realty Income (O)

Number of shares: 150

Dividend income: $474.30

Realty Income rewards investors with growing monthly dividends despite concerns stemming from a possible higher-for-longer interest rate scenario and potential tariffs on Chinese imports in the upcoming Trump era. The latest hike came earlier this month when the REIT increased its monthly dividend by 0.2%.

The investor earning $10,460 in dividends had 150 O shares in his portfolio.

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Schwab U.S. Dividend Equity ETF 

Number of shares: 105

Dividend income: $102.62

Schwab U.S. Dividend Equity ETF (NYSE:SCHD) tracks the Dow Jones U.S. Dividend 100 Index and gives investors exposure to some of the top dividend stocks trading in the U.S., including Home Depot, Coca-Cola, Verizon, Lockheed Martin, Pepsi and AbbVie. The investor had 105 shares of the fund in his portfolio.

W.P. Carey (WPC)

Number of shares: 300

Dividend income: $1,050

WP Carey Inc. (NYSE:WPC) is among the top net lease REITs with over 1,200 properties in the U.S., Europe and other parts of the world. Retail stores, restaurants, automotive companies and grocery stores are among the REIT’s tenants. The Redditor, earning $10,460 annually in dividends, had 300 company shares in his portfolio.

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Arrived Home’s Private Credit Fund’s has historically paid an annualized dividend yield of 8.1%*, which provides access to a pool of short-term loans backed by residential real estate. The best part? Unlike other private credit funds, this one has a minimum investment of only $100. 

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This article 35-Year-Old Earning $10,460 in Dividends With $133,000 Invested Reveals His Top 8 Stocks originally appeared on Benzinga.com

 

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