In This Article:
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below.
For some people, especially those drawn to the charm of tech stocks and speculative plays, the investing journey begins with high-risk, high-reward strategies.
However, as their financial goals change, many shift their focus to more stable, income-generating holdings. High-yield dividend stocks, in particular, have become a favorite for those seeking both growth and a reliable passive income.
For many, dividend stocks represent the best of both worlds, namely, the potential for capital appreciation and the safety of regular payouts. Still, transitioning from a high-risk portfolio to a dividend-focused approach asks for careful planning, especially when dealing with larger sums of money.
Don't Miss:
-
Arrived Home's Private Credit Fund’s has historically paid an annualized dividend yield of 8.1%*, which provides access to a pool of short-term loans backed by residential real estate with just a $100 minimum.
-
CEO of Integris gathered a team of senior investment managers who have $34.22 billion in combined owned and managed assets in the West Coast — here’s how to invest in their private credit fund that targets 12% annual interest rate.
Enter an investor with $700,000 tied up in risky stocks. After suffering significant losses, the individual is looking to pivot toward safer, dividend-paying investments. His goal is to build a $1 million portfolio that yields 10% in dividends annually.
As he puts it in a Reddit post, “I have taken a lot of losses. I haven't made any profits yet. I just kept adding most of my income to my portfolio. I'm currently at -$60,000 so I am deciding to move toward safer investments.”
The investor’s post has sparked a lively discussion in the comments, with Reddit members of the r/Dividends community offering a mix of practical advice, cautionary tales and specific investment recommendations.
Trending: Commercial real estate has historically outperformed the stock market, and this platform allows individuals to invest in commercial real estate with as little as $5,000 offering a 12% target yield with a bonus 1% return boost today!
Let’s dive deep into Redditors’ suggestions.
Portfolio Shift: From High-Risk to High-Yield Dividend Stocks – Reddit's Suggestions
Consider a Balanced Portfolio
Many commenters recommended a diversified ETF approach to achieve both long-term growth and reliable income.
“If growth is more important than dividends, you could just roll over to a simple 3-ETF portfolio like 60% [Vanguard S&P 500 ETF (NYSE: VOO)], 30% [Schwab U.S. Dividend Equity ETF (NYSE: SCHD)], 10% [Vanguard Growth ETF (NYSE: VUG)]... Lower yield but solid growth. If you want more yield, increase SCHD, for more growth increase VUG, etc.,” a Redditor suggested.