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Dividend investing is rising in popularity as investors seek stability and consistent income. Reliable dividend stocks reward investors even when times are tough. According to data from BlackRock, stocks of companies that regularly raise their dividends outperformed non-growers from 1978 through 2023.
But which dividend stocks can help you reach a decent income level without risks? Let’s look at a success story for some ideas.
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About two months ago, a dividend investor on r/Dividend (a community of over 580,000 members on Reddit) shared that he reached a $1,000 per week dividend income milestone after 15 years of investing.
The investor said his portfolio, which generates $1,000 a week, was worth $927,892. This makes it a portfolio with a strong 5.6% yield. Asked how he accumulated this wealth for investing, the Redditor said he has owned a small business (IT consulting) since 2015, and “every spare penny” he made was invested in stocks, bonds, CDs, and HYSA.
“I clear about $250,000 a year from my business (pre-tax),” he added.
It’s also important to highlight that the investor said he’s single and has no mortgage or debt.
Someone asked the investor how much he contributed to investing every month. Here is the response.
“Around $5,000 a month, give or take – I’ve been able to do that for about five years now.”
The Redditor also explained the key motivation behind his investing journey:
“I remember my mom once saying that my father never had the opportunity to enjoy retirement (he passed away) – that stuck with me. So if I can get out early and have a comfortable life, sign me up,” he said.
While not everyone can contribute $5,000 per month to investing, we can all take inspiration and stock ideas from his success story and portfolio. Here are some of the stocks and ETFs in this high-yield dividend portfolio, which the investor shared publicly.
Coca-Cola
Coca-Cola Co (NYSE:KO) is perhaps one of the safest dividend stocks in the market, with over six decades of consecutive dividend increases and a solid business. In late August, Morgan Stanley increased its price target for Coca-Cola Co (NYSE:KO) to $78 from $70 and called it a top pick. Morgan Stanley believes the company is positioned well to see strong organic sales compared to industry peers.
Wendy’s
It’s not common to see Wendy’s Co (NASDAQ:WEN) in the portfolios of Redditors making long-term dividend income. However, the Redditor making about $1,000 per week in dividends said the fast-food chain’s stock was among his notable holdings. WEN yields about 5.7%.
PepsiCo
PepsiCo Inc. (NASDAQ:PEP) has a dividend yield of about 3.2% and over 50 consecutive years of dividend increases. Like Coca-Cola, it’s considered a defensive stock that investors like for all market cycles. The Redditor making $1,000 weekly in dividends mentioned PEP among his notable stock holdings.
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Nuveen Preferred & Income Opportunities Fund
Nuveen Preferred & Income Opportunities Fund (NYSE:JPC) invests mostly in stocks and other investments to generate income, including bonds. Some of the fund’s top holdings include Barclays, JPMorgan, Wells Fargo and Truist. JPC pays monthly dividends and yields over 7%.
JPMorgan Equity Premium Income ETF
JPMorgan Equity Premium Income ETF (NYSE:JEPI) has become a no-brainer investment among Redditors looking to invest in dividend ETFs for the long term. JEPI makes money by investing in some of the most notable large-cap U.S. stocks and selling call options. JEPI is ideal for those looking for exposure to defensive stocks. JEPI usually underperforms during bull markets but protects investors against huge losses during bear markets, as most of its portfolio consists of large, defensive equities like Trane Technologies PLC (NYSE:TT), Southern Co (NYSE:SO), Progressive Corp (NYSE:PGR), among many others.
The fund pays a monthly dividend and yields about 7%.
JPMorgan Nasdaq Equity Premium Income ETF
The Redditor earning $1,000 a week in dividends counted JPMorgan Nasdaq Equity Premium Income ETF (NASDAQ:JEPQ) among the top ETFs in his portfolio. JEPQ invests in Nasdaq companies and generates extra income by selling call options. As of Oct. 2, the ETF yielded about 9%.
Nuveen Floating Rate Income Fund
Nuveen Floating Rate Income Fund (NYSE:JFR) is a floating-rate income fund that generates income by investing in adjustable-rate loans. The fund yields about 11%. However, floating-rate funds are usually attractive when interest rates are rising.
Schwab U.S. Dividend Equity ETF
The Redditor earning about $1,000 per week in dividends said he owned just 118 shares of Schwab U.S. Dividend Equity ETF (NYSE:SCHD). The ETF tracks the Dow Jones U.S. Dividend 100 Index and exposes you to some of the top dividend stocks trading in the U.S., including Home Depot, Coca-Cola, Verizon, Lockheed Martin, Pepsi, and AbbVie, among many others.
Wondering if your investments can get you to a $5,000,000 nest egg? Speak to a financial advisor today. SmartAsset’s free tool matches you up with up to three vetted financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you.
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This article 49-Year-Old Earning $1,000 a Week in Dividends With $927,892 Shares Portfolio: Top 8 Stocks and ETFs originally appeared on Benzinga.com
