Dividend investing is gaining popularity as more Americans turn to secondary income sources to offset market volatility and inflation. Data from Hartford Funds shows that from 1973 through 2024, dividend stocks in the S&P 500 posted an annualized return of 9.2%, compared with only 4.3% for non-dividend companies.
In June, a dividend investor shared his income report and portfolio details on r/Dividends, a Reddit community with over 760,000 followers. The portfolio screenshots shared by the investor showed his monthly dividend income stood at $5,240. The investor said he crossed the $5,000 monthly dividend income milestone for the first time.
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"Frankly, getting dividend is the biggest joy in my life," he said. "Nothing brings me more pleasure."
The investor said his portfolio consisted of about 17 dividend ETFs. Let's take a look at some of his top picks based on the details he publicly shared on the social media platform.
Schwab US Broad Market ETF
Schwab US Broad Market ETF (NYSE:SCHB) was among the top holdings of the investor making $5,200 a month in dividends. The fund tracks the total return of the Dow Jones U.S. Broad Stock Market index. It has a distribution yield of about 1.2%.
Goldman Sachs Nasdaq-100 Premium Income ETF
The Goldman Sachs Nasdaq-100 Premium Income ETF (NASDAQ:GPIQ) pays monthly dividends and yields over 9%. The fund tracks the Nasdaq-100 Index and generates income by selling call options.
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Vanguard Tax Managed Fund FTSE Developed Markets ETF
The Vanguard Tax Managed FTSE Developed Markets ETF (NYSE:VEA) tracks the FTSE Developed All Cap ex US Index and provides exposure to small-, mid-, and large-cap stocks from Canada, Europe and the Pacific region. The fund has a dividend yield of about 2.7%.
Schwab U.S. Dividend Equity ETF
The Redditor earning $5,200 per month in dividends also had a stake in Schwab U.S. Dividend Equity ETF (NYSE:SCHD). The fund tracks the Dow Jones U.S. Dividend 100 Index and gives investors exposure to some of the top dividend stocks trading in the U.S., including Chevron (NYSE:CVX), ConocoPhillips (NYSE:COP), PepsiCo (NASDAQ:PEP) and Merck & Co. (NYSE:MRK).
JPMorgan Nasdaq Equity Premium Income ETF
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. JEPQ has a dividend yield of 11%.
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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. Nvidia (NASDAQ:NVDA), Oracle (NYSE:ORCL), Trane Technologies (NYSE:TT), Microsoft (NASDAQ:MSFT) and Meta Platforms (NASDAQ:META) are among the fund's top holdings. JEPI has a dividend yield of 8%.
iShares Broad USD High Yield Corporate Bond ETF
The iShares Broad USD High Yield Corporate Bond ETF (CBOE: USHY) tracks the ICE BofA BB US High Yield Constrained Index. Its portfolio includes US dollar-denominated high-yield corporate bonds. The fund yields about 6.7%.
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