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The Federal Reserve’s 50bps rate cut has spooked many, as most Wall Street analysts were not expecting 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 yields is that you’re almost always well-positioned to survive a market downturn or recession and thrive during a market boom.
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About five months ago, a Redditor on r/Dividends shared his detailed income report and portfolio, saying he makes about $53,500 in annual dividend income and about $4,400 per month. The investor, who is 40, has a goal of reaching $100,000 in annual dividend income.
The Redditor shared all of his portfolio holdings, detailing the total number of stocks and the amount invested in each stock/ETF. Let’s take a look at some of the largest holdings in this high dividend portfolio.
ConocoPhillips
ConocoPhillips (NYSE:COP) was the largest 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 1,450 shares, Phillips 66 (NYSE:PSX) was the Redditor’s second-largest holding, earning $4,400 a month in dividends. The energy production and logistics company has a dividend yield of 3.5% and has increased its dividends for more than 10 years in a row.
NEOS Nasdaq-100 High Income ETF
NEOS Nasdaq-100 High Income ETF (NASDAQ:QQQI) gives investors exposure 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 approximately 15%. Over the past year, QQQI is up 1.5%.
JPMorgan Nasdaq Equity Premium Income ETF
The Redditor, who earns about $4,400 a month in dividends, said he has 1,150 shares of JEPQ in his portfolio. JPMorgan Nasdaq Equity Premium Income ETF (JEPQ) is a high-yield covered call ETF that pays monthly dividend income. The ETF invests in Nasdaq companies and generates additional income by selling call options.
Schwab US Dividend Equity ETF
Schwab US Dividend Equity ETF (NYSE:SCHD) tracks the Dow Jones US Dividend 100 Index and gives you exposure to some of the best dividend stocks traded in the US, including Home Depot, Coca-Cola, Verizon, Lockheed Martin, Pepsi and AbbVie. SCHD’s holdings are primarily conservative dividend payers, making it suitable for investors nearing retirement looking for consistent dividend income. The ETF yields around 3.4%.
Verizon Communications
With a yield of over 6% and 18 consecutive years of dividend growth, Verizon Communications Inc. (NYSE:VZ) is a popular dividend stock among income investors. The Redditor who earned $4,400 in monthly dividends had 1,300 shares of VZ in his portfolio.
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Ares Capital
Business development and investment firm Ares Capital Corporation (NASDAQ:ARCC) yields about 9.4% and has become popular among Redditors. Oppenheimer recently published a list of stock recommendations ahead of the U.S. election. The firm believes Ares Capital will benefit from both Republican and Democratic administrations.
iShares National Muni Bond ETF
iShares National Muni Bond ETF (MUB) is a municipal ETF that generates monthly income for shareholders. The biggest advantage of this ETF is that its earnings are tax-exempt. MUB tracks U.S. investment-grade municipal bonds and yields approximately 2.9%.
AT&T
AT&T Inc. (NYSE:T) yields about 5% and the stock is up about 25% this year. UBS recently named AT&T its top pick in the cable, satellite and telecom services sector. The firm believes AT&T can maintain its core profitability, low churn and fiber-optic profits. The Redditor, who earns about $4,400 a month in dividends, had 2,400 shares of T in his portfolio.
Vanguard High Dividend Yield Index Fund ETF
Vanguard High Dividend Yield Index Fund ETF (NYSE:VYM) offers 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 that some investments will no longer yield what they did in previous months, but you don’t have to give up 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.
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
