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The Federal Reserve’s 50bps rate cut has spooked many, as most Wall Street analysts were not expecting an aggressive policy easing from the central bank. Investors are now questioning the true state of the economy and weighing the likelihood of a potential recession.
One of the benefits of investing in reliable, long-term dividend stocks is that you are almost always well-positioned to survive any market downturn or recession and thrive during bull markets.
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About five months ago, a Redditor on r/Dividends shared his detailed income report and portfolio, saying he earns about $53,500 in annual dividend income and roughly $4,400 per month. The investor, who is 40 years old, has a goal of reaching $100,000 in annual dividend income.
The Redditor shared all his portfolio positions with details about the total number of shares and amount invested in each stock/ETF. Let’s look at some of the biggest positions in this high-dividend portfolio.
ConocoPhillips
ConocoPhillips (NYSE:COP) was the biggest position in the Redditor’s portfolio, earning $4,400 per month. The energy company has a dividend yield of about 3%. Earlier this year, ConocoPhillips said it would buy Marathon Oil for $22.5 billion.
Phillips 66
With 1450 shares, Phillips 66 (NYSE:PSX) was the second-biggest holding of the Redditor, who earned $4,400 per month in dividends. The energy manufacturing and logistics company has a dividend yield of 3.5% and has raised its dividends for more than 10 consecutive years.
NEOS Nasdaq-100 High Income ETF
NEOS Nasdaq-100 High Income ETF (NASDAQ:QQQI) exposes investors to Nasdaq 100 companies and generates income by selling covered call options on the index. It pays a monthly income and has a yield of about 15%. Over the past year, QQQI has been up 1.5%.
JPMorgan Nasdaq Equity Premium Income ETF
The Redditor, earning about $4,400 per month in dividends, said he had 1150 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.
Schwab U.S. Dividend Equity ETF
Schwab U.S. Dividend Equity ETF (NYSE:SCHD) tracks the Dow Jones U.S. Dividend 100 Index and gives you exposure to some of the top dividend stocks trading in the U.S., including Home Depot, Coca-Cola, Verizon, Lockheed Martin, Pepsi, and AbbVie among others. SCHD’s holdings are mostly conservative dividend payers, making it suitable for investors close to retirement looking for consistent dividend income. The ETF yields about 3.4%.
Verizon Communications
With over 6% yield and 18 straight years of dividend growth, Verizon Communications Inc. (NYSE:VZ) is a popular dividend stock among income investors. The Redditor earning $4,400 in monthly dividends had 1300 VZ shares in his portfolio.
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Ares Capital
Business development and investment company Ares Capital Corporation (NASDAQ:ARCC) yields about 9.4% and has gained popularity among Redditors. Oppenheimer recently published a list of stock recommendations heading into the U.S. elections. The firm believes Ares Capital stands to benefit under both Republican and Democrat administrations.
iShares National Muni Bond ETF
iShares National Muni Bond ETF (MUB) is a municipal ETF that generates monthly income for shareholders. The biggest benefit of this ETF is that its gains are exempt from taxes. MUB tracks investment-grade U.S. municipal bonds and yields about 2.9%.
AT&T
AT&T Inc. (NYSE:T) yields about 5% and the stock has gained about 25% this year. UBS recently called AT&T its top pick in the cable, satellite, and telecom services sector. The firm believes AT&T can sustain its core profitability growth, low churn and fiber gains. The Redditor, earning about $4,400 per month in dividends, had 2,400 T shares in his portfolio.
Vanguard High Dividend Yield Index Fund ETF
Vanguard High Dividend Yield Index Fund ETF (NYSE:VYM) provides exposure to some of the most established and safe dividend stocks, including ExxonMobil, Coca-Cola, Walmart, and Home Depot. The ETF tracks the FTSE High Dividend Yield Index.
Interest Rates Are Falling, But These Yields Aren’t Going Anywhere
Lower interest rates mean some investments won’t yield what they did in months past, but you don’t have to give up those gains. Certain private market real estate investments are giving retail investors the opportunity to capitalize on these high-yield opportunities and Benzinga has identified some of the most attractive options for you to consider.
Arrived Homes, the Jeff Bezos-backed investment platform, offers a Private Credit Fund. This fund provides access to a pool of short-term loans backed by residential real estate with a target of 7% to 9% net annual yield paid to investors monthly. The best part? Unlike other private credit funds, this one has a minimum investment of only $100.
Don’t miss out on this opportunity to take advantage of high-yield investments while rates are high. Check out Benzinga’s favorite high-yield offerings.
This article 40-Year-Old Dividend Investor Earning $4,400 Per Month Shares His Portfolio Of Stocks and ETFs: Their Top 10 Picks originally appeared on Benzinga.com
