68-Year-Old Earning $4,300/Month in Dividends Shares His Top 7 Stock Picks — 'Dividends Have Been Consistent, Stable'
2025.02.09
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U.S. markets were seeing volatility as technology earnings began to worry investors due to soft forecasts and mounting AI-related expenses. To offset volatility, long-term investors are expected to pile into quality dividend stocks. But which companies can help you achieve a diversified income stream? Let's turn to a case study for ideas.
This month, someone asked income investors living off their dividends to share their portfolio details on r/Dividends — a Reddit discussion board with more than 670,000 followers. Many investors shared interesting portfolios and income reports, but one comment caught our eye.
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An investor said he was making about $4,300 per month, or $51,950 per year. His portfolio yield was around 6.6%.
"Supplements my social security income...have had this portfolio since retired 5 years now...dividends have been consistent and stable," the investor, 68, said.
Let's take a look at some of the key dividend stocks and funds in the investor's portfolio based on the details he shared publicly on the social media platform.
Global X NASDAQ 100 Covered Call ETF
Global X NASDAQ 100 Covered Call ETF (NASDAQ:QYLD) was one of the stocks in the portfolio of the investor collecting about $4,300 a month in dividends. The investor revealed in a separate comment that the fund was in his IRA account and "supplements" his monthly income.
Global X Russell 2000 Covered Call ETF (NYSE:RYLD) was another important dividend fund in the portfolio. RYLD generates income by selling call options on the small-cap-heavy Russell 2000 Index. The ETF yields about 12%. Being a covered call ETF, RYLD is also not risk-free and often posts losses during down markets. The ETF is now in the limelight as analysts believe small-cap stocks will be among the top beneficiaries of an easing monetary environment.
NEOS Nasdaq-100 Hedged Equity Income ETF
The NEOS Nasdaq-100 Hedged Equity Income ETF (NASDAQ:NUSI) generates income by selling call options on the Nasdaq-100. The fund has a monthly distribution rate of 8.7%. NUSI is up 13% over the past year.
JPMorgan Equity Premium Income ETF
JPMorgan Equity Premium Income ETF (NYSE:JEPI) 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.
VICI Properties (NYSE:VICI) is a gaming and entertainment-focused REIT with a dividend yield of about 5.8%. The company owns some of the world’s most famous entertainment properties, including Caesars Palace Las Vegas, MGM Grand and the Venetian Resort Las Vegas.
SPDR Portfolio S&P 500 High Dividend ETF
The SPDR Portfolio S&P 500 High Dividend ETF (NYSE:SPYD) tracks the total return performance of the S&P 500 High Dividend Index. The fund’s top holdings include AbbVie (NYSE:ABBV), AT&T (NYSE:T), Consolidated Edison (NYSE:ED), Invesco (NYSE:IVZ), and Franklin Resources (NYSE:BEN), among many others.
Schwab U.S. Dividend Equity ETF
The investor earning about $4,300 in monthly dividends had Schwab U.S. Dividend Equity ETF (NYSE:SCHD) in his portfolio. Schwab U.S. Dividend Equity ETF tracks the Dow Jones U.S. Dividend 100 Index and provides exposure to some of the top dividend stocks trading in the U.S., including AbbVie, Cisco (NASDAQ:CSCO), Pfizer (NYSE:PFE), Amgen (NASDAQ:AMGN), Bristol-Myers Squibb (NYSE:BMY) and Home Depot (NYSE:HD). Since SCHD's holdings are mostly conservative dividend payers, it's suitable for investors close to retirement looking for consistent dividend income.
