40-Year-Old Earning $120,000 a Year in Dividends Shares Portfolio – 'Dividend Investing Nothing But Good To Me' - Apple (NASDAQ:AAPL), Analog Devices (NASDAQ:ADI)

Dividend stocks have long been investors' choice to offset volatility when uncertainty increases. Data shows that during the 1940s, 1960s, and 1970s — when total market returns were less than 10% — dividends contributed significantly to broader market returns.

About two years ago, someone asked income investors on r/Dividends – a Reddit discussion board with over 670,000 members – to share their annual dividend income. The question received over 400 comments, with many impressive income reports and insights.

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An investor said he was making about $120,000 in annual dividends at the age of 40. Asked what was the total value of the portfolio, the investor said it was about $1 million.

"While I respect everyone’s opinion and strategy, including growth, diversification, speculation, options…etc. dividend investing has been nothing but good to me. I have been making $120k-130k annually for the last few years, not accounting the growth part," the investor said in a separate comment.

Let's take a look at some of the top dividend holdings in the investor's portfolio.

Cornerstone Strategic Investment Fund

The Cornerstone Strategic Investment Fund CLM is a closed-ended fund that seeks capital appreciation and income generation. As of the end of June last year, the fund had $1.7 billion in assets. Some of the top holdings of the fund include Apple AAPL, Microsoft MSFT, Nvidia NVDA, Amazon AMZN and Meta Platforms META.

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Dividend 15 Split Corp

Dividend 15 Split Corp. is a Canadian corporation that invests in a portfolio of 15 dividend stocks and pays monthly. It has a dividend yield of about 25%.

Brookfield Real Assets Income Fund

Brookfield Real Assets Income Fund RA seeks capital appreciation and income by investing in infrastructure, real estate securities and fixed income. RA has a dividend yield of 11.8%.

Harvest Diversified Monthly Income ETF

The Harvest Diversified Monthly Income ETF's portfolio consists of companies from various sectors including utilities, health care and technology. The fund also generates additional income using covered call strategies. It has a dividend yield of about 10%.

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Hamilton Enhanced U.S. Covered Call ETF

The Hamilton Enhanced US Covered Call ETF targets long-term capital growth and consistent income with a portfolio of covered call ETFs. It has a dividend yield of about 12% and pays monthly.

Rivernorth Opportunities Fund

The Rivernorth Opportunities Fund RIV invests in closed-ended funds, ETFs, SPACs and business development companies for income generation and capital appreciation. About 29% of the fund's total assets are allocated to fixed income, while 16% belong to investment company bonds and 13% to SPACs.

CI Tech Giants Covered Call ETF

The CI Tech Giants Covered Call ETF is a Canadian ETF that provides investors exposure to some of the top US tech companies and generates income by selling call options. Some of the top holdings of the fund are Broadcom AVGO, Cisco Systems CSCO, Analog Devices ADI, Nvidia, Texas Instruments TXN and Apple, among many others.

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Global X Nasdaq 100 Covered Call ETF

Global X Nasdaq 100 Covered Call ETF QYLD was one of the top holdings of the investor making $120,000 in dividends annually.

It 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. It yields about 12%. Some of the top holdings of the ETF are Apple, Nvidia, Microsoft, Amazon, and Broadcom.

Global X Russell 2000 Covered Call ETF

The investor also had Global X Russell 2000 Covered Call ETF RYLD in his portfolio. The fund generates income by selling call options on the small-cap-heavy Russell 2000 Index.

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