Dividend stocks are gaining attention amid growing expectations that the Federal Reserve will cut interest rates by 25 basis points next month. Data from Purpose Investments showed inflows into the five largest dividend ETFs surged tenfold last month compared with the start of 2024.
In June, an investor shared his dividend income and portfolio details on r/Dividends, a Reddit community of income investors with over 750,000 followers. The poster, 50, said he’s slowly moving from growth to dividend stocks and nearing early retirement.
In a separate post, the investor said his annual salary is roughly $350,000, but he is “sick” of the corporate world and plans to retire soon.
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“I’m sick of the corporate world and the 9-5 (I wish it was only 8 hour days!) rat race,” he wrote. “Maybe it’s a mid-life crisis or maybe I’m just finally thinking ‘I have enough’, but I’m hoping to pull the trigger as soon as possible.”
The portfolio screenshots shared by the investor showed that his dividend income was about $5,900 per month.
Let’s take a look at some of the top dividend stocks in the investor’s portfolio.
JPMorgan Nasdaq Equity Premium Income ETF
JPMorgan Nasdaq Equity Premium Income ETF 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. The fund has a dividend yield of 11%.
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Altria Group
Altria Group MO has a 7.6% dividend yield and over 50 years of consistent dividend growth history. It’s one of the most popular high-yield dividend stocks among income investors on Reddit.
YieldMax MSTR Option Income Strategy ETF
The YieldMax MSTR Option Income Strategy ETF MSTY generates income by selling call options on Strategy MSTR stock. The fund is down about 32% so far this year.
PIMCO Dynamic Income Fund
PIMCO Dynamic Income Fund PDI is a high-yield fixed-income fund that invests in debt securities, including mortgage-backed securities and bonds from developed and emerging markets. PDI yields about 14% and pays monthly dividends.
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NEOS Nasdaq-100 High Income ETF
NEOS Nasdaq-100 High Income ETF QQQI exposes investors to Nasdaq 100 companies and generates income by selling covered call options on the index.
Global X Nasdaq 100 Covered Call ETF
Global X Nasdaq 100 Covered Call ETF QYLD is a notable ETF that earns money by selling covered call options on the Nasdaq-100 Index. The fund was started in 2013 and has since paid monthly income to investors. The fund yields about 12%.
Schwab U.S. Dividend Equity ETF
Schwab U.S. Dividend Equity ETF SCHD 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 Chevron CVX, PepsiCo PEP, ConocoPhillips COP and Altria.
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