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Dividend investor making $9,495 a month regrets not focusing on dividends sooner, shares his ten stock and ETF picks

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Major tech stocks like Meta Platforms and Microsoft fell after their latest earnings results as Wall Street was spooked by rising costs and AI spending. With election-related uncertainties and the need for portfolio diversification, dividend stocks remain the focus. Data shows that dividend growth stocks have outperformed inflation for the past 23 years. However, choosing the right dividend stocks and ETFs in today’s market remains an important question for novice investors.

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About a year ago, a dividend investor shared his detailed income report and story on r/Dividends – a discussion board for income investors with more than 600,000 members. The investor said his investment account was started with $60,000, which he had saved in his 403(b) retirement plan while working at his first job for eight years. He then rolled this money into an IRA.

The investor said that $60,000 grew to $1.2 million in 27 years from 1996 “without putting any new money into it.”

“During that time, I have experienced massive market booms and busts such as the dotcom bubble/burst, the housing bubble/burst, the Great Recession, and the recent Covid-19 crash and recovery. During all that time, my focus has been on growing My core holdings have always been SPY and QQQ, about 50-70%, and occasionally some speculative stocks, about 20-30%,” said the investor.

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He emphasized that he continued to invest in the market through all these ups and downs. The investor said he is now retired and shifted his focus to dividend investing in 2022.

“My only regret is that I should have switched to dividends a little earlier when I had $1.5 million, but I guess that’s life. The expected dividend yield is ~9%, but I’ll be happy with ~8% dividend yield. “

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The investor clarified that most of his portfolio gains came from his time focusing on growth.

“The only dividend I received during my accumulation phase was from SPY & QQQ. I focused heavily on growth,” he said.

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