35-year-old investor invested $133,000, earned $10,460 in dividends, reveals his 8 favorite stocks
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As the Federal Reserve continues to cut interest rates and signal caution, investors are weighing their next steps, while artificial intelligence stocks such as Nvidia have slipped on valuation concerns. Against this backdrop, dividend stocks are back in the spotlight. A report from Raymond James shares historical data showing that stocks generally struggle in a falling interest rate environment, but dividend stocks provide a buffer to help investors manage downside risks.
In early December, a dividend investor shared a screenshot of his portfolio and income details on r/Dividends, a community of income investors on Reddit with 637,000 followers. The investor asked other investors for suggestions on which stocks he should add or remove from his portfolio.
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He stated that his portfolio size was $133,000, and a screenshot of his portfolio showed that his annual dividend income was $10,461 and $871 per month. The portfolio’s dividend yield is approximately 7.86%.
“Our plan is to reinvest our current income as a DRIP. However, it would take us about 4-5 years to travel around the world for 1-2 years and live off the dividends. Additionally, we save money from our salary every month More money,” the 35-year-old investor commented while discussing his post.
Let’s take a look at some of this investor’s key positions, based on screenshots of his publicly shared portfolio.
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Ares Capital (ARCC)
Number of shares: 300
Dividend income: $576
Ares Capital is one of the top stocks in the investor’s portfolio, earning $10,460 per month on a $133,000 investment. Ares Capital is a business development company. Its dividend yield is about 9%, according to Benzinga Pro. The investor has 300 shares of ARCC stock in his portfolio, and he received approximately $576 in dividends from this investment. The stock has gained 4.4% so far this year.
Enlarge CWP (DIVO)
Number of shares: 95 shares
Dividend income: $176
The Amplify CWP Amplified Dividend Income ETF (DIVO) offers investors the opportunity to invest in dividend growth stocks and generate income by selling calls on individual stocks. It is paid monthly and has a distribution rate of approximately 4.8%. Last month, the fund returned 6.29%, compared with the benchmark S&P 500 Index’s return of 5.87%.
JPMorgan Equity Premium Income ETF
Number of shares: 300 shares
Dividend income: $1,146.50
The JPMorgan Equity Premium Income ETF (NYSE: JEPI) makes money by investing in some of the most well-known U.S. large-cap stocks and selling call options. JEPI is ideal for those looking to invest in defensive stocks. JEPI typically underperforms during bull markets, but can protect investors from large losses during bear markets because the majority of its portfolio consists of large defensive stocks.
An investor earning $10,460 annually owns 300 shares of the ETF and receives approximately $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
This investor has 1,200 shares of the JPMorgan Nasdaq Equity Premium Income ETF (JEPQ) in his portfolio. The J.P. Morgan Nasdaq Equity Premium Income ETF (JEPQ) is a high-yield covered call ETF that distributes monthly dividend income. This ETF invests in Nasdaq companies and generates additional income by selling call options. It yields about 9%, according to Benzinga Pro.
Medical Property Trust (MPW)
Number of shares: 1,500 shares
Dividend income: $480.00
health care REIT Medical Properties Trust is one of the key stocks in the portfolio, earning investors approximately $10,460 per year and approximately $480 in annual dividend income.
The following is what investors said about MPW in the post discussion:
“I took a position around $5. I do believe they can weather the funds rate storm.”
Real estate income(O)
Number of shares: 150 shares
Dividend income: $474.30
Despite concerns about a possible longer-term higher interest rate scenario and potential impending Trump-era tariffs on Chinese imports, real estate income is rewarding investors with growing monthly dividends. The most recent rate hike occurred earlier this month, when the REIT increased its monthly dividend by 0.2%.
The investor who received the $10,460 dividend has 150 O shares in his portfolio.
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Schwab U.S. Dividend Stocks ETF
Number of shares: 105
Dividend income: $102.62
The Schwab U.S. Dividend Stocks ETF (NYSE: SCHD) tracks the Dow Jones U.S. Dividend 100 Index, giving investors exposure to some of the top dividend stock trades in the U.S., including Home Depot, Coca-Cola, Verizon, Lockheed Martin, PepsiCo and Aberdeen dimension. The investor has 105 shares of the fund in his portfolio.
WP Carey(WPC)
Number of shares: 300 shares
Dividend income: $1,050
WP Carey Inc. (NYSE: WPC) is one of the top net lease REITs with more than 1,200 properties in the United States, Europe and other parts of the world. The REIT’s tenants include retail stores, restaurants, automotive companies and grocery stores. This Reddit user earns $10,460 in annual dividend income and has 300 shares of company stock in his portfolio.
Lower interest rates mean some investments won’t earn as much as they have in past months, but you don’t have to lose those gains. Certain private market real estate investments offer retail investors the opportunity to take advantage of these high-yielding opportunities.
Arrived Home’s Private Credit Fund has historically paid an annualized dividend rate 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, The minimum investment for this project is only $100.
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This article 35-Year-Old Invests $133,000, Earns $10,460 in Dividends Reveals His 8 Favorite Stocks originally appeared on Benzinga.com
