Benzinga and Yahoo Finance LLC may earn commissions or revenues on certain items via the links below.
Dividend stocks are in the spotlight as investors seek to channel capital into a market that is euphoric after the first rate cut. Many dividend investing success stories show that choosing dividend-paying stocks wisely can help you generate a reliable income stream.
About three years ago, a dividend investor on r/Dividends shared his detailed income report, saying he was making $13,000 per year. The Redditor’s initial investment was around $330,000, which has turned his investment journey into nearly $474,000 in about seven years.
Don’t miss:
When asked if he uses DRIP investment strategies, the investor replied:
“I don’t drip – I prefer to earn dividends and reinvest when I see a good opportunity. The same goes for rebalancing. If a stock is very overvalued and I see a good cheap one, I can divert money.”
There were 73 stocks in this portfolio. To give you an idea of ​​which stocks generated the most income for this investor, we picked 14 high-yielding dividend stocks that contributed the most to the investor’s total annual income, based on the portfolio screenshots he shared publicly in his Reddit post.
AbbVie
With a current dividend yield of 3.2%, AbbVie Inc. (NYSE:ABBV) was one of the notable dividend stocks in the portfolio of the $13,000-a-year Redditor. Screenshots shared by the investor showed that the portfolio contained 80 shares of the company. Over the past year, shares of AbbVie have gained about 25%.
Franklin Sources
Financial services company Franklin Resources Inc. (NYSE:BEN) was among the highest-yielding dividend stocks in the $13,000 income portfolio. The stock yields about 5.9%, and the company has increased its payouts continuously for more than four decades. The Redditor owned 180 shares of the company. Over the past five years, however, BEN shares have fallen about 27%.
Cardinal Health
With over 35 consecutive years of dividend increases, Cardinal Health Inc. (NYSE:CAH) is one of the safest dividend stocks. The Redditor owned about 95 shares of the company.
Caterpillar
The Redditor who earns about $13,000 in annual dividend income owned 30 shares of Caterpillar Inc. (NYSE: CAT) about three years ago when he shared his portfolio details. Caterpillar has increased its payouts for 28 consecutive years.
IBM
Contributing over $1,000 in dividend income, IBM Common Stock (NYSE:IBM) was a prominent holding in the Redditor share’s $13,000 dividend income portfolio three years ago. The investor owned 50 shares of the company.
Coca Cola
Coca-Cola Co (NYSE:KO) is another strong dividend growth stock in the Redditor’s portfolio, who earns $13,000 per year. The investor owns 150 shares of the company’s stock. As of today, Coca-Cola Co (NYSE:KO) has increased its dividend by more than six decades and yields 2.7%.
See more:
General mills
Consumer food company General Mills Inc. (NYSE:GIS) has a dividend yield of over 3.2% and the stock is up 14% over the past year. The Redditor owned 110 shares of General Mills Inc. (NYSE:GIS) at the time he shared his portfolio.
Lazard
Financial advisory and asset management company Lazard Inc. (NYSE:LAZ) was an interesting name in the Redditor’s portfolio. The stock earns $13,000 in dividends per year and has a dividend yield of about 3.96%. The investor reported owning 150 shares of the company’s stock.
3M
Industrial conglomerate 3M Co (NYSE:MMM) is a strong dividend-paying stock in the Redditor’s portfolio, generating $13,000 in annual income. The company has increased its dividends for 64 consecutive years. 3M Co (NYSE:MMM) is up 64% so far this year. The investor said at the time that 3M was his largest position.
Real estate income
Realty Income Corp. (NYSE:O) has become synonymous with monthly dividend income, thanks to its juicy yield (over 5%) and near-guaranteed dividend increases. The company has now increased its payouts for three decades in a row. The Redditor had 100 shares of the REIT in his portfolio.
Altria Group
When he shared his earnings report three years ago, the Redditor had 140 shares of Altria Group Inc. (NYSE:MO) in his portfolio. Today, the tobacco products company has increased its payouts for 59 years. Altria Group Inc. (NYSE:MO) has been rapidly transitioning to smoke-free products amid a global decline in traditional smoking. The stock is up 22% so far this year.
AT&T
With a dividend yield of around 5.2%, AT&T Inc. (NYSE:T) is a notable dividend stock. The Redditor’s portfolio included the telecom company, which earned $13,000 per year in dividends. The investor owned around 190 shares of the telecom company.
T Rowe Price Group
The Redditor owned 60 shares of asset management and financial services company T Rowe Price Group Inc. (NASDAQ:TROW), which currently has a dividend yield of about 4.6%.
ExxonMobil
Oil giant Exxon Mobil Corp. (NYSE:XOM) was one of the biggest contributors to the Redditor’s portfolio of dividend income. The investor had 161 XOM shares in his portfolio. Exxon Mobil Corp. (NYSE:XOM) currently yields about 3.2%.
Interest rates are falling, but these yields aren’t going anywhere
Lower interest rates mean that some investments will no longer yield what they did in previous months, but you don’t have to lose out on those gains. Certain private market real estate investments offer retail investors the opportunity to take advantage of these high-yield opportunities, and Benzinga has identified some of the most compelling 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 monthly to investors. The best part? Unlike other private credit funds, this fund has a minimum investment of just $100.
Don’t miss this opportunity to profit from high yield investing while rates are high. Check out Benzinga’s favorite high yield offerings.
Wondering if your investments could make you a $5,000,000 nest egg? Contact a financial advisor today. The free tool from SmartAsset connects you with up to three verified financial advisors who are active in your region. You can have a free conversation with the advisors that suit you, so you can determine which advisor is the best fit for you.
This article Dividend Investor Makes $13,000 Per Year With $330,000 Invested In His Portfolio: 14 Stocks You Can’t Miss originally appeared on Benzinga.com
