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Investing in the stock market is usually a balancing act between risk and reward. While some investors go for steady, predictable returns, others are drawn to high-risk, high-reward stocks.
These investments, often defined by volatility and the capacity to create massive gains, can be life-changing for those who strategize correctly. Still, they are not for the faint of heart since high-risk stocks can also lead to significant losses, making them controversial among investors.
But, for those willing to embrace the suspense, the rewards can be considerable, as one Redditor’s story shows.
The poster, who has amassed a portfolio worth more than $1 million, is now reaping the perks of his high-risk, high-reward investment approach. He’s earning $14,000 to $15,000 monthly in dividends, an achievement he has sustained for over a year.
His portfolio is a combination of covered call ETFs, split-share funds and other high-yield investments that have performed well lately. However, the poster mentioned that he’s aware of the current favorable market conditions and he’s prepared to recalibrate his strategy if necessary.
“Been over a year, so far, so good. Not too concerned, as I can recalibrate at a moment’s notice. I’m not ignorant of the fact that everything is performing well right now,” the investor said.
Below, we break down each of the stocks and funds the investor holds, explaining what they are, the dividend yields, and why investors might be drawn to them.
The 10 Picks Behind The Redditor’s $15,000 Monthly Dividend Success
Simplify Volatility Premium ETF
Simplify Volatility Premium ETF (NYSE:SVOL) focuses on split income and capital gains between shareholders. Known for its high-yield dividends and popular among income-seeking investors, SVOL pays 15.24% annually.
JPMorgan Nasdaq Equity Premium Income ETF
With a dividend yield of around 9.53%, JPMorgan Nasdaq Equity Premium Income ETF (NASDAQ:JEPQ) specializes in covered calls. The ETF generates income by selling these calls on NASDAQ-listed stocks and balances income production with moderate growth.
Defiance S&P 500 Target Income ETF
Like JEPQ, Defiance S&P 500 Target Income ETF (NYSE:SPYT) employs a covered call strategy to generate income, but it also invests in an S&P 500 index portfolio. With a dividend yield of 8.2%, SPYT’s approach lessens investors’ portfolio volatility.
Life & Banc Split Corp. is a Canadian split share giant that invests in a common shares portfolio of selected Canadian banks and life insurance companies. LBS pays a dividend yield of approximately 14.8%.
Brompton Lifeco Split Corp.
Investing in Canada’s largest life insurance companies’ common shares, Brompton Lifeco Split Corp. provides a dividend yield of around 15.2%.
Brompton Split Banc Corp.
Brompton Split Banc Corp. focuses on investing in a portfolio composed of common shares of the largest six Canadian banks. Investors might be charmed by SBC’s high dividend yield, which is around 13.5%, and its strong financial performance.
Dividend Growth Split Corp.
Offering a distribution rate of 18.66%, Dividend Growth Split Corp. invests in a varied portfolio of mainly large-cap Canadian equities with a high dividend growth rate.
Global Dividend Growth Split Corp. focuses on a diversified portfolio of equity securities and large-capitalization global dividend growth companies. GDV pays investors 10.5% in dividends per year.
WisdomTree U.S. Quality Dividend Growth Fund
WisdomTree U.S. Quality Dividend Growth Fund (NASDAQ:DGRW) tracks the investment outcomes of dividend-paying large-cap companies that focus on growth in the U.S. equity market. While generating a lower yield–around 2.3%–DGRW is known for its consistency and resilience during market downturns.
iShares Core Dividend Growth ETF
Tracking the investment results of an index made of U.S. equities, iShares Core Dividend Growth ETF (NYSE:DGRO) pays investors 2.18%. The ETF has a history of consistently growing dividends.
