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Dividend investing has taken a backseat since the AI-driven craze sent everyone flocking to tech growth stocks. However, long-term investors looking for stable value and Reliable income Stream is always looking for big dividend payers that can survive market volatility. A few days ago, a Redditor posted a detailed income report on r/Dividends, a community of over 580,000 members, saying he was making $110,000 a year in dividends on an investment of around $1.2 million.
Check it out:
The Redditor said that part of his portfolio is allocated to money market and fixed income funds.
“About half of this is in money market/fixed income, which generates 5%. All together that generates $110,000 a year. I’m just sharing this for feedback. The plan is to move from fixed income to dividend stocks as rates come down so that income stays the same or increases,” he said.
When asked how he amassed $1.2 million for investThe Redditor said he worked for 20 years while his wife worked for 15 years.
“We both have 401k plans separate from this after-tax account, which we plan to leave alone for a while,” he added.
The investor generously shared his detailed portfolio. Let’s examine some of the important stocks and funds it contains.
Schwab Value Advantage Money Market Fund (SWVXX)
The largest investment in the redditor’s portfolio, which brings in about $110,000 a year, is the Schwab Value Advantage Money Market Fund (SWVXX). The fund is suited for those looking for a stable and safe place to park their cash. It has total assets of about $204 billion and yields about 5.13%.
Blackrock Multi-Sector Income Trust
Blackrock Multi-Sector Income Trust (NYSE:BIT) yields approximately 9.8% and invests in loan and debt instruments. The fund’s objective is to generate income and capital appreciation. Some of its top holdings include FEDERAL NATIONAL MORTGAGE ASSOCIATION, UNIFORM MBS, TRANSDIGM INC., CLOUD SOFTWARE GROUP INC. and HUB INTERNATIONAL LTD.
AGNC Investment Corporation
AGNC Investment Corp (NASDAQ:AGNC) is a mortgage REIT with a dividend yield of about 13%. The company pays monthly dividends. AGNC invests in mortgage-backed securities from safe agencies, as Fannie Mae or Freddie Mac guarantee the principal of the MBS in the event of defaults.
Icahn Enterprises LP
Billionaire Carl Icahn’s conglomerate, Icahn Enterprises LP (NASDAQ:PEI), is one of the stocks in the redditor’s portfolio. IEP has a yield of 30%, but its sustainability and safety have been questioned for quite some time.
In August, Icahn settled with the SEC over charges related to personal margin lending. Last year, IEP cut its dividend by 50% and now pays about $1 per share.
Horizon Financial Technology Horizon Technology Finance Corp (NASDAQ:HRZN) is a business development company that provides loans to technology, life sciences, healthcare and information services companies. HRZN pays monthly dividends and has a yield of around 12%.
Stellus Capital Investment Corporation
Stellus Capital Investment Corp (NYSE:SCM) is another business development company on the list. It pays monthly dividends and has a yield of about 12%. Stellus generates income through its portfolio of debt investments in middle-market companies. The stock is up about 6.5% this year.
Real estate income
Realty Income Corp (NYSE:Oh) has become an obvious dividend stock in redditors’ portfolios, generating decent monthly income. The company pays monthly dividends and has increased its payouts for 29 years. The last monthly dividend increase came earlier this month, when Realty Income raised its dividend by 0.2%.
Cornerstone Strategic Value Fund
Cornerstone Strategic Value Fund Inc. (NYSEAMERICAN: CLM) is a closed-end fund that generates income by investing in public companies. The fund has a yield of about 17% and pays monthly dividends.
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Global X Nasdaq 100 Covered Call Options ETF
Global X Nasdaq 100 Covered Call ETF (NASDAQ:QYLD) generates income by selling covered call options on the Nasdaq-100 index. The fund was launched in 2013 and has been paying monthly income to investors ever since. The fund has a yield of around 11.5%. Some of the top holdings of the ETF are Apple, Nvidia, Microsoft, Amazon, and Broadcom.
Energy transfer
With a dividend yield of around 8%, Energy Transfer LP (NYSE:AND) is a popular dividend stock on Reddit. The company is relatively insulated from the volatile commodities market, as most of its revenue comes from commission-based contracts. Last month, Energy Transfer LP (NYSE:AND) raised its full-year earnings outlook after posting strong second-quarter volumes.
MPLX
Midstream energy infrastructure company MPLX LP (NYSE:MPLX) is one of the high-yield dividend stocks in the redditor’s portfolio. The company has a dividend yield of around 8% and is owned by Marathon Petroleum. During the second quarter, MPLX’s revenue rose by around 13% annually, beating Wall Street estimates.
Ares Capital
Ares Capital Corporation (NASDAQ:ARCC) is one of the most notable business development companies in the Redditor’s portfolio, which has earned $110,000 in dividends. The stock has a dividend yield of around 9.4%. During its second-quarter earnings presentation, Ares Capital management said that the company has shifted its $850 million of issued debt to a floating interest rate. Analysts believe that this move would help the company position itself well for the next rate cut cycle, as its interest burden will decrease with the expected easing of monetary policy.
Interest rates are falling, but yields aren’t going away
Lower interest rates mean that some investments won’t yield as much as they did in previous months, but you don’t have to give up those gains. Certain private market real estate investments are giving retail investors the chance to capitalize on these high-yield opportunities, and Benzinga has identified Some of the most attractive options for you to consider.
Arrived Homes, the investment platform backed by Jeff Bezos, offers a Private Credit FundThis fund provides access to a pool of short-term loans backed by residential real estate with a net annual return target of 7% to 9% paid to investors on a monthly basis. The best part? Unlike other private credit funds, this one has a minimum investment of just $100.
Don’t miss this opportunity to take advantage of high-yield investments while rates are high. Check out Benzinga’s favorite high-yield stocks.
This article Investor earning $110,000 in dividends shares his portfolio: Top 12 stocks and ETFs you might be missing Originally appeared in Benzinga.com
