26-Year-Old Making $1,670 Per Month in Dividends Shares Her Top 3 Stock Picks and Strategy – 'Keep Living Below Means'

Market analysts are bullish on dividend stocks for 2025 amid investors' appetite for cash and stability. Howard Silverblatt, S&P Dow Jones Indices senior index analyst, said in a recent analysis that record dividends are expected this year amid declining interest rates, a strong jobs market and earnings growth.

Earlier this month, a dividend investor shared her detailed income report and holdings on r/Dividends, a discussion board on Reddit with more than 650,000 members. The investor said she made about $1,670 per month in dividends with $400,000 invested. She mentioned that her goal for 2025 is to reach $3,000 per month in dividends.

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"I know doubling up to $3k/month sounds crazy, but the market’s running hot and I’ve got a good income to invest ($150k). Been working so far with this boring strategy," she said.

The investor, who mentioned she will be 26 next month, believes reaching $3,000 a month in dividends is possible if she keeps living below her means, invests her bonuses into JPMorgan Equity Premium Income ETF, lets the compounding do its work and "stay aggressive with monthly buys."

Let's take a look at the top dividend ETF picks shared by the investor.

Schwab U.S. Dividend Equity ETF 

Monthly Dividend Income: $520

The Redditor who collected $1,670 in monthly dividends had a $185,000 position in Schwab U.S. Dividend Equity ETF (SCHD). The fund tracks the Dow Jones U.S. Dividend 100 Index, exposing investors to top dividend stocks in the U.S., including Home Depot, Coca-Cola, Verizon, Lockheed Martin, Pepsi and AbbVie, among others. Since SCHD's holdings are mostly conservative dividend payers, it's suitable for investors close to retirement looking for consistent dividend income. The fund has a dividend yield of about 3.7%. 

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JPMorgan Equity Premium Income ETF 

Monthly Dividend Income: $710

JPMorgan Equity Premium Income ETF (JEPI) was among the investor’s top holdings, earning about $1,670 per month in dividends. The total worth of her stake stood at $120,000. The fund makes money by investing in some notable large-cap U.S. stocks and selling call options. JEPI is ideal for those looking for exposure to defensive stocks. It usually underperforms during bull markets but protects investors against huge losses during bear markets since most of its portfolio consists of large, defensive equities like Trane Technologies PLC TT, Southern Co SO and Progressive Corp PGR, among others.

Realty Income

Monthly Dividend Income: $443

The investor earned about $443 per month in dividend income from her $95,000 position in Realty Income (O), one of the most popular monthly dividend stocks on Reddit. The REIT has raised its payouts for about three decades now. Realty Income shares are down 11% over the past year amid concerns over tariffs and the potential for prolonged high-interest rates.

In November, Mizuho Securities cut Realty Income (O) to Neutral from Outperform, citing that higher interest rates could impact the company and end the “pivot party.” 

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