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An investor on r/Divdends, a Reddit community of 600,000 members, said they are on track to significantly increase their income over the next decade.
With an anticipated $59,390 in dividend payouts over the next 12 months, the investor — Huge-Cardiologist-81 — aims to achieve $200,000 in annual dividend income within nine years.
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To reach this goal, the investor will need to maintain a consistent annual dividend growth rate of about 14.44%. This implies reinvesting dividends, selecting stocks with a history of dividend increases, and potentially diversifying their portfolio across dividend-paying sectors.
While achieving such a substantial increase in dividend income is not guaranteed, the investor’s current trajectory and strategic approach suggest they are well-positioned to achieve their financial objectives.
Here’s a sampling of what’s in Huge-Cardiologist’s portfolio:
The Schwab US Dividend Equity ETF stands out as one of the leading income-focused ETFs available today. Beyond its low fees, there are several compelling reasons the ETF is a valuable investment.
The ETF contains about 100 dividend-paying stocks, and, like many leading ETFs, is relatively concentrated in its top holdings. The fund’s top 10 positions comprise about 40% of its assets, featuring major companies like Home Depot, Verizon, Chevron, and Coca-Cola, which play a key role in this income-focused portfolio.
The Fidelity Blue Chip Growth K6 Fund is a mutual fund focused on large, established companies with strong growth histories. It seeks long-term capital appreciation by investing in blue chip stocks — well-known, financially stable companies with consistent earnings and dividends.
The growth-oriented fund may appeal to investors looking for higher return potential, though it comes with a higher level of risk. Managed by Fidelity Investments, the fund offers a diversified portfolio of top-performing blue chip stocks, making it suitable for those seeking exposure to established, high-growth companies.
BlackRock’s iShares Core High Dividend ETF aims to provide investors with exposure to established, high-quality U.S. companies by tracking an index of U.S. equities known for relatively high dividend yields.
The ETF includes 75 carefully selected dividend-paying domestic stocks screened for financial stability, making it a potentially solid choice for investors focused on income generation. Designed to serve as a core component of an income-focused portfolio, it offers consistent access to dividend income from financially healthy U.S. companies.
JPMorgan U.S. Quality Factor ETF seeks to deliver investment results that closely match the performance of the JP Morgan U.S. Quality Factor Index, before fees and expenses. To achieve this, it invests at least 80% of its assets in securities included in the index, with assets referring to any net assets plus any amount borrowed for investment purposes. The index consists of U.S. equity securities chosen for their quality factor characteristics.
Invesco QQQ, the ETF tracking the Nasdaq-100 index, has outperformed the S&P 500 in seven of the past 10 years as of Sept. 30. With a five-year cumulative return of 167.07%, a $10,000 investment in Invesco QQQ five years ago would be valued at $26,707.
The current interest rate environment has created an incredible opportunity for income-seeking investors to earn massive yields, but not through publicly-traded REITs.
