35-Year-Old Making $2,500 Per Month in Dividends With a 29% Yield Portfolio Shares His Top 7 Stocks, ETFs
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Investing slowly but consistently almost always produces positive results thanks to the power of compounding. But dividends redouble the impact of compounding. A report from Anchor Capital Advisors showed if you invested $100 in the S&P 500 Index in 2001 and reinvested all the dividends, you would have $350 by 2020.
Earlier in November, an investor shared his detailed income report and portfolio screenshots on r/Dividends – a thriving community of income investors on Reddit with over 620,000 members.
The portfolio screenshots shared by the investor, who said he was 35 in a different Reddit post, showed his total annual dividend income stood at about $30,043 annually or $2,503 per month. His total portfolio yield was 29%.
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Based on the portfolio details shared by the investor publicly, let's examine some of the important stock holdings in his portfolio:
JPMorgan Equity Premium Income ETF
Number of Shares: 312
The investor earning about $2,500 per month in dividends had 312 shares of JPMorgan Equity Premium Income ETF (NYSE:JEPI) in his portfolio, valued at about $18,230 at the time of his post. The fund 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 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), among many others.
JPMorgan Nasdaq Equity Premium Income ETF
Number of Shares: 335
JPMorgan Nasdaq Equity Premium Income ETF (NASDAQ:JEPQ) is a high-yield covered call ETF that distributes monthly dividend income. The ETF invests in Nasdaq companies and generates extra income by selling call options. As of Nov. 21, JEPQ yields 9.6%. Over the past year, JEPQ has increased by about 16%.
Realty Income
Number of Shares: 307
Realty Income Corp (NYSE:O) is perhaps one of the most popular monthly dividend stocks, with a 5.5% yield and 30 consecutive years of dividend growth. However, the stock has been taking it on the chin lately, losing about 9% in the past 30 days. Mizuho Securities recently downgraded Realty Income Corp (NYSE:O) stock to Neutral from Outperform, citing the impact of a "higher for longer" interest rate environment. Analysts also expect possible tariffs from President-elect Donald Trump to impact Realty Income's biggest tenant, which imports products from China and other countries.