30-Year-Old ' Little Late to The Party' Asks for Dividend Stocks Advice on Reddit: 8 Stock Recommendations

On a long enough timeline, staying invested in the market pays off. Data shows that from 1937 through 2019, stocks have posted positive returns in 76% of calendar years with an average total market return of 19.7%. The broader stock market saw record highs last year, but that doesn't mean you missed the boat. The market always teems with opportunities for those who know where to look.

A few days ago, someone asked r/Dividends – a Reddit community of over 650,000 income investors – for advice on dividend investing and long-term growth stocks. The investor, 30, titled his post "a little late to the party" and said he had never invested before.

"It looks super overwhelming but dividends are what I've decided to go with for now. Any advice on where to start?"

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The question received a strong response and engagement from Redditors and many pitched in with interesting stock and ETF recommendations. Let's take a look at some of the top dividend stock recommendations from this discussion.

Schwab U.S. Dividend Equity ETF 

Schwab U.S. Dividend Equity ETF (SCHD) emerged as the most common dividend investment recommendation during the discussion. Schwab U.S. Dividend Equity ETF (SCHD) tracks the Dow Jones U.S. Dividend 100 Index and exposes you to some of the top dividend stocks trading in the U.S., including Home Depot, Coca-Cola, Verizon, Lockheed Martin, Pepsi and AbbVie, among many others. Since SCHD's holdings are mostly conservative dividend payers, it's suitable for investors close to retirement looking for consistent dividend income.

Vanguard S&P 500 ETF

The Vanguard S&P 500 ETF (VOO) is one of the best ways to gain exposure to the broader U.S. market and earn steady dividend income. The fund gained about 21% in the last 12 months.

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SPDR Portfolio High Yield Bond ETF

The SPDR Portfolio High Yield Bond ETF (SPHY) exposes investors to dollar-denominated high-yield corporate bonds. It generates income through investments in lower-rated (non-investment grade) bonds, often called “junk bonds.”

Realty Income

Realty Income (O) is one of Reddit’s most popular monthly dividend stocks. The REIT has raised its payouts for about three decades now. Realty Income shares are down 12% 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, saying higher interest rates could impact the company and end the “pivot party.” 

Coca-Cola 

Coca-Cola (KO) was recommended by a Redditor as a dividend growth stock among the "best of the best" because of its consistently growing dividends.

"Most of these companies are going to be on the boring side, but they’re also some of the best-performing stocks of all time," one Redditor said.

Coca-Cola has raised its dividends for over six decades without a break.

Piper Sandler recently gave an Overweight rating to Coca-Cola shares, saying the company has strong brands and execution. The firm also highlighted the company's exposure and growth in emerging markets.

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Vanguard Dividend Appreciation Index Fund ETF

The Vanguard Dividend Appreciation Index Fund (VIG) tracks the S&P U.S. Dividend Growers Index, providing exposure to companies that regularly increase their dividends. The fund has a dividend yield of about 1.7%. Its portfolio consists of more than 300 companies, including Apple, Broadcom, JPMorgan, Microsoft, UnitedHealth and Visa.

iShares Core Dividend Growth ETF

During the discussion, the iShares Core Dividend Growth ETF (DGRO) was recommended more than once as Redditors favored investing in dividend growth stocks. DGRO invests in companies with a strong history of dividend growth and yields about 2.26%. Some of the fund’s biggest holdings include Broadcom, JPMorgan, Johnson & Johnson, ExxonMobil, Microsoft and AbbVie. 

Vanguard Total Stock Market ETF 

Vanguard Total Stock Market Index Fund ETF (VTI) tracks the total stock market, exposing investors to small-, mid- and large-cap stocks. About 69% of the fund is allocated to large-cap stocks. Its portfolio includes more than 3,600 stocks. Among the top holdings of the ETF are Apple, Microsoft, Nvidia, Meta Platforms and Amazon. VTI has a dividend yield of about 1.2%.

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Interest Rates Are Falling, But These Yields Aren't Going Anywhere

Lower interest rates mean some investments won't yield what they did in months past, but you don't have to lose those gains. Certain private market real estate investments are giving retail investors the opportunity to capitalize on these high-yield opportunities.

Arrived Home's Private Credit Fund’s has historically paid an annualized dividend yield of 8.1%*, which provides access to a pool of short-term loans backed by residential real estate. The best part? Unlike other private credit funds, this one has a minimum investment of only $100. 

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