45-Year-Old Immigrant Who Went From Debt to $5,200/Month in Dividends Shares His Top 8 Stock Picks — 'Believe in the Power of Compounding' - Apple (NASDAQ:AAPL), Amazon.com (NASDAQ:AMZN)

Markets are jittery as President Donald Trump's proposed tariffs loom, pushing investors toward stable stocks to counter volatility. Dividend stocks are expected to draw more interest in the coming months as demand for diversified income grows.

A few days ago, a dividend investor shared his success story and detailed income report on r/Dividends — a community of income investors on Reddit with over 670,000 members. The investor, 45, said he is an immigrant who came to study in the U.S. and lived below means for two decades. According to the portfolio screenshots and income report he shared, the investor's portfolio was worth about $1 million and he was earning roughly $5,200 a month in dividends.

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" I’m an immigrant who came for grad studies with a loan my parents took out on the home they currently live in. Completed 20yrs of professional experience in tech and lived below my means for 20years in a HCOL city. This is a non retirement self managed account, grew this after putting 25% down for our dream home. 45M and pretty darn proud of myself," he said.

The investor said he aims to retire by the age of 52 and lives in an area with high costs of living. However, he has a solid plan figured out:

"I was in growth mode until 45 and switched to dividend for 50% or 60% last year. I would like to retire in 6-8 years, so this is stair stepping my way and giving myself confidence that I can build 5-7 years of passive income through periods of bear and bull markets. I am a patient man and value track records over wishful thinking."

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Believe in the Power of Compounding

He also gave some advice to investors on patience and the importance of staying invested in the market:

"Believe in the power of compounding. Dont worry about timing the market, simply focus on time in the market. I remember buying SPY at $125 in 2008 thinking…damn….am I buying the peak?"

Let's take a look at some of the top dividend stocks in his portfolio.

SPDR S&P 500 ETF Trust

Number of Shares: 300

The SPDR S&P 500 ETF Trust SPY was the biggest position in the portfolio of the investor earning about $5,200 per month in dividends.

The SPDR S&P 500 ETF Trust is one of the best ways to gain exposure to the broader US market as well as earn dividends. The fund pays quarterly and yields about 1.2%. Some of the biggest holdings of SPY include Apple AAPL, Nvidia NVDA, Microsoft MSFT, Amazon AMZN, Meta Platforms META, Tesla TSLA and Alphabet GOOG GOOGL)).

The investor had 300 SPY shares in his portfolio.

Ares Capital

Number of Shares: 6170

Ares Capital Corporation ARCC accounted for about 14% of the total portfolio as the investor had 6,170 shares of the company.

With a dividend yield of over 8%, Ares Capital California-based business development company. Over the past year the stock is up 15%.

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Pfizer

Number of Shares: 3210

The Redditor had about 3201 shares of Pfizer Inc. PFE in his portfolio. The pharma giant has raised its dividends for 15 consecutive years.

Realty Income Corporation

Number of Shares: 1457

The investor making $5,200 a month in dividends had 1457 shares of Realty Income Corporation O, one of the most famous monthly dividend stocks. The REIT has a dividend yield of 5.8%. In December, the company raised its dividend by 0.2%.

JPMorgan Nasdaq Equity Premium Income ETF

Number of Shares: 815

JPMorgan Nasdaq Equity Premium Income ETF JEPQ is another 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 yields about 9.6%.

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Kinder Morgan

Number of Shares: 1559

Energy infrastructure company Kinder Morgan KMI was among the top dividend stocks in the portfolio. Last month, the company posted fourth-quarter results and issued 2025 outlook. KMI expects adjusted EPS of $1.27 in the year, up 10% year over year.

NEOS Nasdaq-100 High Income ETF

Number of Shares: 721

NEOS Nasdaq-100 High Income ETF QQQI exposes investors to Nasdaq 100 companies and generates income by selling covered call options on the index. It pays a monthly income and has a yield of about 13%.

British American Tobacco

Number of Shares: 938

With a dividend yield of over 7.5%, British American Tobacco plc BTI is among the top income stocks popular among investors on Reddit. The investor had 938 shares of the tobacco giant. BTI shares are up 33% over the past year.

Wondering if your investments can get you to a $5,000,000 nest egg? Speak to a financial advisor today. SmartAsset’s free tool matches you up with up to three vetted financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you.