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Dividend investing isn’t easy. It takes research, time, discipline and perseverance to reach a monthly dividend income significant enough to pay your bills. But there’s no shortage of inspiring success stories that show it can be done.
A dividend investor on Reddit shared their detailed income report about a month ago on r/Dividends, saying he reached his goal of making $5,500 per month in dividend income. He urged fellow investors to be patient and work hard to reach their financial goals.
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“I had three jobs for the longest time, working seven days for many years in my 20s and most of 30s. While I only started stock investments about three years ago as I was heavy in real estate investments, it took me years to save a chunk of money to use as seed money,” he said.
Asked what jobs he worked, the Redditor said he worked simultaneously as a full-time nurse, weekend nurse and weekend restaurant waiter for several years. The investor was repeatedly asked for tips and secrets for a successful dividend investing journey. They said:
“First, you gotta work, discipline yourself not to spend and save all you can. That’s the first step. Disciplining yourself to save is just as important as investing.”
The investor was also asked if they got burned out because of three jobs. Here is the response:
“I didn’t have time to think or feel ‘burned out’ because I was that hungry, desperate and determined to get myself and my family out of poverty.”
The Redditor shared their detailed portfolio with fellow investors. It had 45 positions and a total value of about $1.1 million. Let’s look at some of the highest-yielding dividend stocks in the portfolio.
Enterprise Products Partners
Midstream energy company Enterprise Products Partners LP (NYSE:EPD) has a dividend yield of about 7% and 26 consecutive years of dividend increases. The stock has gained about 10% so far this year. The Redditor, earning about $5,500 per month in dividends, had about $153,700 invested in the company. EPD was the biggest position in the portfolio.
JPMorgan Equity Premium Income ETF
The Redditor, earning $5,500 per month in dividends, had about $152,300 invested in JPMorgan Equity Premium Income ETF, which is gaining popularity among income investors. JPMorgan Equity Premium Income ETF (NYSE:JEPI) makes money by investing in large-cap U.S. stocks and selling call options. JEPI is suitable for investors looking to gain exposure to defensive stocks. It usually underperforms during bull markets and protects investors against huge losses during bear markets since most of its portfolio consists of large, defensive equities like Trane Technologies PLC (NYSE:TT), Southern Co (NYSE:SO), Progressive Corp (NYSE:PGR) and others.
Ares Capital
Business development and investment company Ares Capital Corporation (NASDAQ:ARCC) was the third biggest holding of the Redditor, who said he was earning $5,500 per month in dividend income. Oppenheimer recently recommended Ares Capital Corporation (NASDAQ:ARCC), believing the stock is positioned to gain in both Republican and Democratic governments.
Altria Group
The investor earning $5,500 per month in dividends had invested about $80,000 in Altria Group (NYSE:MO), a stock with a dividend yield of about 8%. The tobacco products company has increased its payouts for 55 years. While the tobacco industry’s troubles amid declining use of traditional tobacco products have made Altria Group (NYSE:MO) investors uneasy, they are hopeful about the company’s transition toward e-vapors and nicotine pouches.
Blackstone Secured Lending
Blackstone Secured Lending (NYSE:BXSL) is a business development company that mainly invests in private U.S. companies’ first-lien senior secured debt. The company has a dividend yield of about 11% and over 95% of its investments are first-lien senior secured, which means its loans are safe and have assurances for repayments even if borrowers default.
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Realty Income
It’s rare to see a high-income dividend portfolio shared on Reddit without Realty Income Corp (NYSE:O). The REIT’s stock yields about 5.2% and has upped its payouts for 30 consecutive years. Analysts believe Realty Income Corp (NYSE:O) has better days ahead as its tenants include retailers who will see more foot traffic amid a decline in inflation and interest rate cuts.
Schwab U.S. Dividend Equity ETF
Schwab U.S. Dividend Equity ETF (NYSE:SCHD) is gaining popularity among young income investors. The fund tracks the Dow Jones U.S. Dividend 100 Index and includes some of the safest dividend stocks like Home Depot, Coca-Cola, Verizon, Lockheed Martin, Pepsi and AbbVie. Portfolio details shared by the Redditor showed he had about $32,000 worth of SCHD shares.
Arbor Realty Trust
Arbor Realty Trust Inc. (NYSE:ABR) is a mortgage REIT with a dividend yield of over 11%. During the second quarter, Arbor’s distributable EPS came in at $0.45, beating Wall Street estimates of $0.42. Net interest income was $88 million, missing the market’s estimate of $97 million.
Medical Properties Trust
Medical Properties Trust Inc. (NYSE:MPW) is a healthcare-focused REIT that acquires and develops net-leased hospital facilities. The company has a dividend yield of about 5.5%. The Redditor owned about $30,900 of company shares.
Enbridge
Canada-based pipeline company Enbridge Inc. (NYSE:ENB) has a dividend yield of over 6% and has increased its payouts for 29 straight years. The stock is up about 12% this year. According to portfolio screenshots he shared publicly, the Redditor had a stake worth about $29,800 in Enbridge Inc. (NYSE:ENB).
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This article Dividend Investor Who Saved For Years Working ‘3 Jobs, 7 Days A Week’ Reached $5,500 Monthly Income Portfolio Shares His Stock Picks And Secrets originally appeared on Benzinga.com
